Dear sirs,
We are traders of Electrical goods and are registered with ED & ST depts. We want to know how to invoice companies situated in SEZ with ED and Sales Tax exemption within the state and outside the state and how to claim the refund for the ED and Sales Tax paid on the input invoice ( our principal's or manufacturer's invoice). Kindly indicate full procedures and forms involved.
Thanks & regards
Bhaskar
Tamil nadu
Hi Bhaskar,
Here your company has paid ED & slaes tax on your input and the same input is traded to SEZ unit
1. Coming to ED paid on input,
Your Company can utilise CENVAT credit of ED paid if your company is a manufacturer/a service provider
since your company is in pure trading activity you can neither utilise cenvat credit of ED paid nor you can get the refund of ED paid
2. Coming to sales tax paid on input
(i) If SEZ unit is situated within state
Some of the states either exempt such sale intended for SEZ unit or they allow the refund of input tax paid
(ii)If SEZ unit is situated outside the state
Since are the goods are sold to SEZ unit, your company can ask SEZ unit to issue form-I in favour of your supplier so that it can be exempted CST if it is inter state sale
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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