Job work by SEZ unit for DTA unit

[Pradeep Jain]

Sir,

Let me know what will be the procedure for Job work is done by SEZ unit for DTA unit and duty liability liabilities , if any.

Regards

Pradeep Jain

[JSW CEMENTLIMITED]

The SEZ units are also allowed to undertake job-work for export on behalf of DTA units. This is subject to the condition that the finished goods are exported directly from SEZ units and export documents are made in the name of the DTA unit. On export of such goods manufactured by SEZ unit on behalf of the DTA unit, the DTA unit is entitled to refund of duty paid on the inputs by way of brand rate of duty drawback.

With the above provisions, it can be said that SEZ unit can only undertake the job work only for those items which are directly exported from SEZ after the jobwork. Thus DTA unit can prepare all the documents for export and send it to SEZ unit which after completion of jobwork shall directly export the goods and provide proof of export to DTA units subsequently.

Regards,

V.Venkat Raman

AI Summary

SEZ Units Can Perform Job Work for DTA Units if Finished Goods Are Exported Directly; DTA Claims Duty Drawback. A query was raised regarding the procedure and duty liabilities for job work performed by a Special Economic Zone (SEZ) unit for a Domestic Tariff Area (DTA) unit. The response clarified that SEZ units can undertake job work for DTA units provided the finished goods are exported directly from the SEZ. The export documents must be in the DTA unit's name, allowing the DTA unit to claim a refund of duty paid on inputs through a duty drawback. SEZ units can only perform job work for items that are directly exported, with the DTA unit handling export documentation.