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SPECIAL ECONOMC ZONE

Adv. S Sharma (Lawyer) (574 Points)

02 February 2008

HI ALL

UNDER DELHI VAT, WHEN GOODS ARE SOLD FROM U.P. SEZ TO DELHI THEN, IS INPUT TAX CREDIT IS AVAILABLE ON PURCHASE FROM U.P. SEZ.

PLZ TELL ME THE RELEVANT SECTION UNDER BOTH VAT.

THX AND REGARDS

SACHIN SHARMA

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4 Replies

Raman Popli (Chartered Accountant) (52 Points)
Replied 02 February 2008

It is inter state purchase, how can you claim input tax credit on cst purchase.This is my personal views.

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Adv. S Sharma (Lawyer) (574 Points)
Replied 02 February 2008

hello sir yes I knw its inter state purchase but this purchase from SEZ Zone and under this tax whch is paid at the time of purchase is refundable. the thing is I m nt able to find out the relevant sections under both state VAT and SEZ Act.

Raman Popli (Chartered Accountant) (52 Points)
Replied 04 February 2008

You can refer sec 8 (6)to (8) of CST Act, 1956, moreover, if you are selling to SEZ then it is exempted.

(Guest)

Dear Mr.Adv.Sachin sharma, Any SEZ will be treated as a non domestic tariff area. For simple understanding say such SEZ is not belongs to India. It is an abroad but located inside India. So if goods are purchased from an SEZ, it will be treated at par with Imports though they are not actually imports. So you have to pay only the Customs Duty and not the VAT.