Works contract in sez unit (VAT)

This query is : Resolved

Author : Anonymous

( Author )
20 June 2012

whether exemption is available for material used in the contract executed in sez unit ?

Swanand

( Expert )
20 June 2012

Yes. SEZ units are entitled to procure goods and material without paying applicable taxes.

Author : Anonymous

( Author )
23 June 2012

thanks a lot.
One more query regarding sale to dealer who in turn supplies to unit in sez unit.
example : A sales goods to B. B instructed A to deliver goods to C who is located in SEZ. In this case if A is located in same state then what tax he will charge while raising bill on B.
If A is in another state then what CST he will charge ?
Any form required to be issued from B to A.
Please reply on priority.
Thanks.

Swanand

( Expert )
23 June 2012

In this case Contract between A & B is independent contract ( no matter whether delivery is in SEZ or not) . It will attract Regular Procedures of taxation. ( No special treatment to this contract as C is not a Direct party to contract as per SEZ ACT).

A & B are liable to pay tax as per regular course.

If it is a Contract Between A & C then the story will be different

Author : Anonymous

( Author )
25 June 2012

Thanks a lot.

Author : Anonymous

( Author )
02 July 2012

Regarding sales invoice to be prepared when customer give instruction to deliver goods directly to his customer -
Example :
If A is selling goods to B but deliver the goods to C who is customer of B. In this case if A prepars sales invoice mentioning that :
Purchaser is - B
Consignee is - B A/c C ( This is proper documentation or consignee should be C only.

Swanand

( Expert )
02 July 2012

Consignee should be C only otherwise goods will not able to enter into SEZ.

So seller is A , purchaser is B and consignee is c

Author : Anonymous

( Author )
02 July 2012

Sir,
Its my mistake that I did not raise query properly.
Actually we are doing works contract in Maharastra state( NOT IN SEZ). We have regd office in Gujarat. We are registered in MAH also under vat act. For execution of work, we placed order on vendor who is in AP and instructed him to supply the material directly at site which is in Maharastra.
Now, in this case, what does it make difference if Vendor shows consignee as :
ABC ( My name )
A/c XYZ (Client-who has awarded work to us)
can it be treated as sale in transit ? OR it is our inter state purchase in MAH state against C FORM ?
Please reply urgently.
Thanks a lot.