I have a query on billing to SEZ's We are deployed in SEZ's Units and working for SEZs Units as Facility management Services. Wherein we are procuring some goods from our vendors to provide the service to SEZ. There are three transaction parties 1) SEZ who is the customer 2) Main Controctor of SEZ and 3) Sub-Contractor for Main Contractor. The Sub Contractor (Party 3) is supplying goods directly to the SEZ customer place and billing to Main Contractor [party no.2]. The Sub contractor is charging the VAT for all the invoice to Main contractor. However the Main Contractor is not charging the VAT since there is no any value addiition on that from Main Contractor and there is ZERO Rated benefits is available for SEZ units, Hence the Main Contractor is not charging back to the SEZ Units.
Please help me to understand, how to treat the below mentioned Scenarioes:-
1. Main contractor can avail the input Vat Or Refund from Govt?
2. Main Contractor can initmate to Sub Contractor not Charged the VAT as this is Deemed Export Services?
3. If GST introduced, what will be the precautions or measure to take on this?
Request you to help me on this...
Regards,
Prabhu
CAclubindia
