Sales tax on sale of TMT RODS or Other Materials on to a Unit comes under SEZ

[N.SHANKARAN NEELAGRI]

Date: 27.05.2010. To. Tax Management India., New Delhi. --------- Sir, Sub: Seeking clarification regarding TNVAT on sales with reference to the subject cited above we would like to submit the following few lines with due respect for your kind perusal guidance. we have got order for selling TMT RODS for a manufacturing unit for it's building constructions purpose which comes under SEZ in SPICOT perundurai in Erode district (Tamilnad). The purchasing party has requested us to delivery the materials without tax as per G.O.Ms.75 dated 28.06.2005. And here we seek your guidance whether we can sale our materials to that unit without deducting sales tax or should we deduct the same from the purchaser. Hence we earnestly request your goodself to give your proper guidance in this matter for which we here thankful to you sir. With Thanks & Regards, Yours Faithfully, For PAVAI ALLOYS & STEELS (P) LTD., N.SHANKARAN. MANAGER (FINANCE) Cell: 098659 92214

AI Summary

Company Seeks Clarification on Tax-Free TMT Rod Sales to SEZ Under G.O.Ms.75; Calls for Guidance on Exemptions A company in Tamil Nadu is seeking clarification on whether they can sell TMT rods to a manufacturing unit in a Special Economic Zone (SEZ) without deducting sales tax, based on a government order (G.O.Ms.75 dated 28.06.2005). The purchasing party requested tax-free delivery. A respondent advised verifying the validity of the notification for the current transaction and suggested consulting the Tamil Nadu VAT department or the customer in the SEZ for guidance. The discussion highlights the need for clarity on tax exemptions for sales to SEZs.