CST on sale from SEZ to DTA

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Suchit (Querist)

08 March 2010 We are a SEZ unit in Maharashtra,we are selling goods to unit in Tamil Nadu,The customer is paying custom duty ,CVD & SAD on the product.Is it required to charge CST in place of SAD,if Yes what should be the base to calculate CST.

Swanand

Swanand (Expert)

10 March 2010 All sales to Domestic Area from SEZ is considered as Imports for Domestic Customer , as SEZ are deemed foreign teritory for the purpose of duties and taxes. So , sale to deomestic are from SEZ attracts Import Duties only ( BCD + CVD + SAD ) It dose'nt attract VAT or CST.

However you can talk to appraising authorities of your SEZ and can ask them to exempt SAD also.

visit our website www.sez-india.net for more info on SEZ's

Suchit

Suchit (Querist)

11 March 2010 Notification No.45/2005-Customs states that goods produced or manufactured in SEZ and sold to DTA would be excempted from the whole of SAD leviable under sub section (5) of section 3 of the Customs tariff Act,1975.Provided no such excemption shall be applicable if such goods,when sold in DTA,are excempted by the Goverment from payment of sales tax or value added tax.
This notification is creating confussion between payment of SAD or charging CST.
Can you please clarify

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