SEZ units are expemt from excise duty as well as CST & VAT under Form I. But can the supplier of goods get the exemption of excise duty on goods procured by him for sales to be made to SEZ?
18 Replies
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 30 December 2008
Yes.
Supply to SEZ is treated as physical export, and hence the manufacturer supplier can procure goods for manufacture and export to SEZ.
Such goods can also be procured by merchant exporter (supplier in your sense) from manufacturer without payment of duty for supply to SEZ unit.
Tinaz
(132 Points)
Replied 30 December 2008
Can i get notification or the section of the act for the same?
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 31 December 2008
Under SEZ Act, supply to SEZ is trated as physical export and hence no separate notification is required. All notifications which are applicable to physical export is applicable to SEZ.
HIMESH
(SERVICE)
(31 Points)
Replied 30 January 2009
Dear Mr.Rajesh Kumar.
We are engaged in the manufacturing of the engineering thermo plastic. Our custoems are situated in the SEZ. We failed to file bil of export for few consignment. Can we calim the advance license benfit with out bill of export.
We have ARE-1 duly endorsed by the customs authority at SEZ.
Please guide us for the process .
Many thanks,
Himesh Desai
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 01 February 2009
Although, supply to SEZ is traeted as physical export, if the consigment is sent into SEZ on which no export incentive is being taken, there is no need to file Bill of export. Mere endorsement on the ARE-1 is suifficient for proof of export. It is like export on free shipping bill (white shipping bill).
Therefore, you will not get any export benefit like advance license on these ARE-1.
krishnan
(employed)
(38 Points)
Replied 13 February 2009
Where and which relevant section of the SEZ Act says that all supplies by DTA units to a SEZ unit are to be treated as physical exports?
Rajaram M
(Asst. Manager Materials)
(180 Points)
Replied 17 February 2009
Our company is located in SEZ, One our supplier sending their c/men to us vide A.R.E-3A form and they are mentioned thier EPCG licence No.in their Invoice. Shall I accept the c/ment? or Is their any customs procedure to be done before cosuming those materials? Please let me know the Notification reference.
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 17 February 2009
Procedure to supply has been given in Rule 29 & 30 of the SEZ Rules.
The supply to SEZ is physical export, hence the material should be supplied under ARE-1 or ARE-2. ARE-3 is for supply to warehouse and goods should not be supplied to SRZ under ARE-3. Further the supplier is claiming export benefit (EPCG license) and hence a bill of export should be filed in such supplies.
Ramesh Pareek
(Service)
(28 Points)
Replied 25 February 2009
| Originally posted by :Tinaz | ||
| " | Please send me details of process to get Form I issued by SEZ Authorities for exemption of CST on purchases made by SEZ Unit.? | " |
Ramesh Pareek
(Service)
(28 Points)
Replied 25 February 2009
| Originally posted by :Tinaz | ||
| " |
SEZ units are expemt from excise duty as well as CST & VAT under Form I. But can the supplier of goods get the exemption of excise duty on goods procured by him for sales to be made to SEZ? Please send me procedure for getting Form I issued by SEZ Authority, Delhi for exemption of CST for purchases made by SEZ unit. |
" |
HS Negi
(Senior Executive- F&A)
(590 Points)
Replied 25 February 2009
Dear Tinaz
Please go through the rule 30 of the SEZ Rules 2006, According to the rule 30 a supply to SEZ unit is cover in physical export. In this case form ARE-1 should to be prepared . SEZ unit will returm you endoresed origional & duplicate copy of ARE duly singed by thier customs authorities. Then you can submit it deptt as proof of export.
Regards
Harendra Singh Negi
Sanchit
(Student)
(22 Points)
Replied 06 April 2009
When is form-I sent to the development commissioner?
CA,CS, Shyam Thakur
(Assitant Manager)
(20 Points)
Replied 01 May 2009
please give me the details procedure for the sez unit to sale in the dta unit :- very urgent
Ravi Kumar Sharma
(Assistant Liaison )
(25 Points)
Replied 30 May 2009
| Originally posted by :Ramesh Pareek | ||
| " |
1. Self certified copy of Sales Tax/ VAT Registration. 2. Demand Draft / pay order (Rs. 12.60/- per Form-I) 3. copy of Board Resolution in fevour of person to sign the Form-I. 4. copy of authorisation letter in favour of person who will collect the Form-I from O/o. the Development Commissioner of SEZ. |
" |
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