Sale of goods to DTA from SEZ

[Ashok Chopra]

Respected Forum,

recently i have set up a unit in SEZ, production started.  due to some problem my export order has been cancelled.  i have a buyer in DTA, pls advice me:-

1. Whether i can sale my product to DTA?

2. Is any permission from any department is required?

3. Is any duty is applicable on sale of goods from SEZ to DTA unit and DTA unit can avail cenvat credit

I shall be thankful, if you guide me alongwith copy of any notifications, circulars or act for the purpose to show to government authorities, if required

regards

[CASeetharaman KC]

Dear Sir

The rules and procedures are exhaustive and you can find them by clicking on the link given below or by putting the link on your address bar

http://www.eouindia.gov.in/APPENDIX14_f.pdf

 

[ashish koppa]

SEZ sale to DTA is allowed.

Procedure prescribed is that the SEZ unit or the DTA unit should file bill of entry for home consumption with other documents with the SEZ customs.

Please also ensure that the goods are not restricted. If restricted import license is required.

regards

CA Ashish Koppa

[email protected]

[Guest]

1.Whether i can sale my product to DTA? - One can defenitely sell the products from SEZ to DTA but wont be getting the tax and duty benfits on the sale.

2. Is any permission from any department is required?- No there is no permisiion required from any department.

3. Is any duty is applicable on sale of goods from SEZ to DTA unit and DTA unit can avail cenvat credit.?- All the taxes and duty benefits wont be applicable on any transaction between a SEZ unit & any unit in DTA. The premise of setting up SEZ is to promote export thus there are several benefits and duty waivers to boost the exports of our country. If one is selling goods to Domestic Tariff Area (DTA) then it wont be considered as export and will attract taxes and duties. However if a unit in a SEZ will be selling something to any other unit in a SEZ then  it will be considered as export and will give attract all tax & duty benefits.

 

Hrishikesh Sahay

Associate Manager- Aerospace Business

GMR Group

 

  

[Guest]

Hi,

if you sales your partner company then you should required CS-4 from the CA for valuation purpose.

also sales as per rule 34.

 

thanks,

Bhargav Joshi

Asst. manager - Warehouse Logistics

9638480441

AI Summary

Sale from SEZ to DTA treated as domestic supply; file bill of entry and taxes will apply, with possible input credit. Sale from SEZ to DTA is permitted but treated as domestic supply; the SEZ or DTA party must file a bill of entry for home consumption with SEZ customs, ensure goods are not restricted or require import licence, and comply with customs formalities. Such supplies do not attract SEZ duty exemptions and will be subject to applicable taxes and duties; the DTA purchaser may claim input (cenvat) credit where entitled. Related party transfers should meet valuation and documentation requirements (including CA certification and adherence to valuation rules).