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

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).