Tax applicability for sale from sez to domestic area

[Anil Jangid]

A company manufactures goods in SEZ area and sold it to domestic market, in this situation what would be the of duties/taxes (Excise/Custom/VAT) applicability on the purchase of raw material and sale of the finish goods.

AI Summary

SEZ Companies Must Pay Customs Duties on Goods Sold Domestically per Section 30 of SEZ Act, 2005 A company in a Special Economic Zone (SEZ) selling goods to the domestic market must comply with Section 30 of the Special Economic Zones Act, 2005. This section mandates that goods moved from an SEZ to the Domestic Tariff Area (DTA) are subject to customs duties, including anti-dumping, countervailing, and safeguard duties, as applicable under the Customs Tariff Act, 1975. The duty rate and tariff valuation are determined by the rate in effect on the removal date or the duty payment date if the removal date is unclear. This information is further supported by Rule 47 of the SEZ Rules, 2006.