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Issue ID: 1388
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Selling of goods after payment of duty

Date 27 Jul 2009
Replies 3 Replies
Views 1723 Views
SEZ to DTA supply treated as import; FEMA governs cross border elements and does not categorically bar such sales.
SEZ-to-DTA supplies are treated, for limited regulatory purposes, as imports into the DTA while FEMA governs only cross-border or foreign exchange transactions; FEMA circulars do not categorically bar SEZ units from selling into DTA, and related FEMA guidance permits DTA units to acquire foreign exchange to pay SEZ suppliers. (AI Summary)

I am working in MNC and it is located in SEZ. As per FEMA Act we can not sell goods in DTA even after paying duty whereas as per SEZ Act we can sell in DTA even after paying duty. Please clarify which act i should follow or which one is correct.

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