An end user in SEZ area has placed order on an India Company in Indian Rupee. The Indian company is importing the material but not doing any value addition. In that case can the company bring the material from customs without paying customs duty, CVD and additional duty to their customs bonded godown and supply to the customer in SEZ in India and raise the invoice in Indian rupee?
Menu
Supply to SEZ
Replies (3)
as per PARA 6.14 OF HAND BOOK OF POLICY PROCEDURES VOL-1(2009-2014)
"SUPPLY TO OTHER EOU/EHTP/STP/BTP/SEZ UNIT SHALL BE COUNTED TOWARDS NFE PROVIDED THAT SUCH GOODS ARE PERMISSABLE FOR PROCEREMENT BY THESE UNITS"
NET FOREIGN EXCHANGE , REFERS TO :-
A-B/B
A , WHERE EXPORTS, (IS THE TOTAL OF FOB VALUE)
B , WHERE IMPORTS (IS THE TOTAL OF CIF VALUE)
INVOICE MADE BE ALSO PERMITTED BY RBI IN INDIA RUPEE.
THX
Thank you for prompt reply.
The query is because the supplier is not manufacturer. They are trader. The purpose is to be competitive. If customs duty, CVD etc. are included in cost, the company can not be competitive.
How the material movement could be? Can material be brought to customs bonded godown without paying customs duty, CVD and additional duty and then be despatched to SEZ unit without charging CVD, additional duty and sales tax?
JIGESH JI,
AS PER FOREIGN TRADE POLICY 2009-2014 , PARA 6.13
"TRANSFRED OF MANUFACTURED GOODS SHALL ALSO BE ALLOWED FROM EOU/EHTP/STP/ BTP/ UNIT TO A SEZ DEVELOPER OR UNIT FOLLOWING PROCEDURE PRESCRIBED IN SEZ RULES , 2006"
ANY DUTY AND VAT WILL NOT BE APPLICABLE FOR SEZ. UNIT.
Recent Threads
- ITR3 under new tax regime
- Please advice what itr to file for AY 2025-26
- Reporting Capital Gains of NRI in ITR
- Gratuity income as salary income on AIS portal. Is
- 80C deductions not being allowed in ITR2 for old r
- Unable to submit ITR 1 return
- Direct Tax(Income from Salary)
- Income from House Property or Business
- 44ADA Business code 14005
- How to rectify Form 67 that is already submitted
Related Threads
CAclubindia
