Refund of vat in SEZ

[Asked by Guest]

wether vat refund in sez is refundble please let me know.

[Madhukar N Hiregange]

Normally there would be zero rating or exemption provided for supplies to SEZ. IN case they have paid the VAT for some reason the same would certainly be refundable. However you may verify from where ( which authority) they could get the same.

As per KVAT chapter II sec.20 & Explanation 1. Tax payable on sale of goods from SEZ is exempted . Under same sec.20 (c) in case Tax paid on goods purchased from SEZ will be refundable.

AI Summary

VAT refund in SEZ: supplies are zero-rated or exempt, and VAT paid on purchases from SEZ is refundable.
Supplies to an SEZ are treated as zero rated or exempt, and VAT erroneously paid on purchases or sales connected with an SEZ is refundable; claimants must identify the competent authority and comply with the statutory refund procedure under the VAT law.