100% EOU, SAD 4% OR 2% CST, WHICH IS APPLICABLE IN DTA SALE.

[SANJAY SURYAWANSHI]

Sir,

In 100% EOU, DTA sale, if Customer has given 'C' form, in this case SAD 4% (As per Customs Tariff Act 1975,Sub Sec 5 of Sec.3) is applicable or 2% CST against 'C' is applicable.

As per Customs Tariff Act 1975, 3(5), which ever is higher is applicable.

Please Clarify.

AI Summary

Debate on whether 100% EOU DTA sales should incur 4% SAD or 2% CST with 'C' Form under Section 3(5). In a discussion regarding the applicable tax for Domestic Tariff Area (DTA) sales by a 100% Export Oriented Unit (EOU), the query was whether 4% Special Additional Duty (SAD) or 2% Central Sales Tax (CST) with 'C' Form applies. One participant argued that if CST is paid, SAD is exempt, while another highlighted that according to Section 3(5) of the Customs Tariff Act 1975, the higher tax should be paid, which would be 4% SAD in this case. A reference to a case law was also mentioned for further clarification.