Procurement for SEZ- Required forms-Urgent

This query is : Resolved

RRRRR (Querist)
Follow

24 May 2011 We are a trading firm and have received a confirmed order from the unit situated in SEZ. The SEZ unit is exempted from paying CST on purchases from us. Now whether can we claim exepmtion under CST or DVAT on the supplies that will ultimately be sold to the SEZ unit as exempted sales. Meaning thereby that whether we can make exempted earmarked (for the SEZ unit only) purchases and then sell those earmarked exempted purchased goods to SEZ unit without charging any CST?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
Follow

24 May 2011 Sale to Special Economic Zone (SEZ) (if they give I form) and to foreign missions/UN (if they give J form) are exempt

for more info:-

http://commerce.nic.in/annual2005-06/englishhtml/Ch-6.htm

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
Follow

24 May 2011 please noted that:-

Tax Benefits

Tax benefits available to SEZ developers include:-

Exemption from customs/excise duties for development of SEZs for authorized operations approved by the BOA.
Supplies from DTA to SEZ shall be exempt from payment of any Central Excise duty under Rule 19 of Central Excise Rules, 2002. Similarly, such supplies shall be eligible for claim of rebate under Rule 18 of Central Excise Rules, 2002 subject to the fulfillment of conditions laid there

under. The provisions relating to exports under Central Excise Act, 1944 and rules made there under may be applied, mutatis-mutandis, in case of procurement by SEZ units & SEZ developer from DTA for their authorized operations

List of usefull links:-

http://www.cbec.gov.in/customs/cs-circulars/cs-circulars06/29-2006-cus.htm

http://www.cbec.gov.in/customs/cs-circulars/cs-circulars03/cs-circ-idx-2k3.htm

www.cbec.gov.in/customs/cs-sez-botm.htm - 30k

http://www.cbec.gov.in/customs/cs-circulars/cs-circulars02/52-2002- cus.htm

Section 10 (AA) of the ITA allows any SEZ unit which begins operations on or after April 1 2006 to make tax deductions equivalent to 100% of its income generated for a period of five consecutive assessment years from the time the SEZ unit commences operations, 50% for the next five assessment years, and tax deductions not exceeding 50% of the ploughed-back profits for the following five assessment years.

Section 80-IA of the Income Tax Act.

http://incometaxindia.gov.in/Notifications/Incometaxact/2002/N_No_S.asp

Exemption from minimum alternate tax under Section 115 JB of the Income Tax Act.

http://incometaxindia.gov.in/circulars/2001/circular2001-13.asp

Exemption from dividend distribution tax under Section 115O of the Income Tax Act.
Exemption from Central Sales Tax (CST) on inter-state purchase of goods.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok