Dear Experts,
Can a SEZ unit made payment in RS(INR) from his Foreign Currency Account to units located in DTY area.
As per DGFT policy , payment received from SEZ units can only be counted for export obligation if it has been remitted through Foreign Currency Account of SEZ unit.
Please suggest procedure for payment through FC accounts by SEZ units.
Thanks and Regards
Narendra Kumar Soni
DGM-Indiract taxation
Can SEZ Units Pay Domestic Tariff Area in INR from Foreign Currency Account? Check Rule 30 and DGFT Notice. A query was raised regarding whether a Special Economic Zone (SEZ) unit can make payments in Indian Rupees (INR) from its Foreign Currency Account to units in Domestic Tariff Area (DTY). According to the Directorate General of Foreign Trade (DGFT) policy, payments from SEZ units count towards export obligations only if remitted through their Foreign Currency Account. A response advised checking Rule 30 of the SEZ Rules along with Trade Notice No. 01/2016 issued by DGFT for guidance on the procedure for such payments. (AI Summary)
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