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SEZ

kapil kumar agrawal (Chartered Accountant ) (169 Points)

01 September 2009

What is the meaning of SEZ????

Goods Produced/manufactured inSEZ are exempt from excise duty.......

Any one tell me what is the reason behind it????

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P.Bashista (Advocate) (367 Points)
Replied 06 September 2009

SEZ stands for Special economic zones. The units in these zones are considered to be units as outside India and any goods suppled to them is considered to be an export.

When someone supplies goods to an SEZ unit it is assumed that it is an export that is why the goods supplied to the SEZ are supplied duty free, same way when you actually export the good outside india.