SEZ vs SAD

[Mridul Sethi]

Is Domestic sales by SEZ units will exempt from SAD? Pls clear it.

[Tejpal Kapoor]

Yes , it is exempt by notification,as in DTA sale you have to pay VAT OR CST and this presumptive tax is in lieu of sales tax

 

AI Summary

Exemption from SAD for SEZ domestic sales; DTA sales subject to VAT or CST and a presumptive tax. Domestic supplies from SEZ units are exempt from Special Additional Duty by notification. Sales into the Domestic Tariff Area are subject to Value Added Tax or Central Sales Tax, and a presumptive tax applies in lieu of sales tax for such DTA transactions.