Sales tax on DTA sale by SEZ

[VENKATASUBRAMANIAN VENKATACHALAM]

Is Sales tax applicable on DTA sale by SEZ unit??

AI Summary

SEZ Units Must Pay Customs Duties on DTA Sales per Section 30; Special Rules for Surplus Power Sales Apply. A query was raised regarding the applicability of sales tax on Domestic Tariff Area (DTA) sales by a Special Economic Zone (SEZ) unit. The response clarified that SEZ units can sell goods, including waste and byproducts, to the DTA upon payment of customs duties as per section 30, subject to conditions outlined in the Foreign Trade Policy. Goods imported or procured from the DTA and sold without manufacturing are also subject to this policy. Additionally, specific rules apply to the sale of surplus power generated in SEZs, requiring duty payment and necessary approvals. Valuation and assessment follow the Customs Act.