JOBWORK -CENTRAL EXCISE - SEZ

[Vigneshwari M]

Dear Sir,

Can you pls clarify as whether jobwork provided within the SEZ premises amounting to manufacturing activity is taxable under Central Excise.

Is there any notification or circular in this regard.

[YAGAY andSUN]

Dear Vigneshwari M,

If such job work is done by the DTA unit in SEZ unit then it would be leviable to Central Excise Duty.

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

[Vigneshwari M]

Thanks for your reply.

Is it not exempted under the central excise provisions ?

Also, is there any equivalent notifications/ circulars in Central Excise to that of Notification No. 17/2011-ST dated 01.03.2011 which provides for Ab inito exemption for services wholly consumed inside SEZ

[YAGAY andSUN]

Dear Vigneshwari M,

You may avail the benefit of Deemed Export after following the prescribed procedure in this regard.

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

[Mahir S]

Please refer to rule 41 (1) of SEZ Rules, 2006 relating to Sub-Contracting, provided the job work process pertains to any production process.

[YAGAY andSUN]

Dear Vigneshwari MPlease also refer Rule 43 in this regard.RegardsTeam YAGAYand SUN(Managementand Indirect Tax Consultants)

AI Summary

Is Job Work by DTA Units in SEZ Taxable Under Central Excise? Consultant Clarifies with SEZ Rules 41(1), 43 A query was raised about whether job work conducted within a Special Economic Zone (SEZ) is taxable under Central Excise. A consultant clarified that if a Domestic Tariff Area (DTA) unit performs job work in an SEZ, it is subject to Central Excise Duty. Further inquiries were made about exemptions and notifications similar to Notification No. 17/2011-ST, which exempts services consumed within SEZs. The consultant suggested availing of Deemed Export benefits and referred to SEZ Rules 41(1) and 43 for guidance on subcontracting and related procedures.