Sale from SEZ unit

[Former Member]

Hi,

Whether in the following three scenario Excise, CST and LST would be applicable or not?

Will the second scenario come under Deemed Export?

1. From SEZ plant- Sales to domestic customer

2. From SEZ plant- Sales to SEZ customer

3. From SEZ plant -Sales to Foreign Customer

Regards

Debasish

[former_member188076 · Accepted solution]

Hi

In scenario 1:-

The Sales Tax ( VAT if within the state or CST if Region of Plant is different from the Region of Ship To Party) will be applicable and if the sale is from a Manufacturing Plant then Excise duty will be applicable too.

Scenario 2:-

Yes this is the case of Deemed Export and there will be no Sales Tax and this will be Excise Exempted too. However the excise duty will be calculated but there will be no posting of Excise Duty.

Scenario 3:-

This is the case of Export Sale and there will be No Sales Tax. However the excise duty will be applicable as per the govt. rule.

Hope this is clear to you.

Regards

Amitesh

[Former Member]

Hi,

1) From SEZ plant- Sales to domestic customer

In this case only Sales Tax is applicable VAT or CST. (Normal Domestic Sales, only excise duties exemptions are there bcoz of SEZ)

2) From SEZ plant- Sales to SEZ customer

In this case nill tax, bcoz SEZ customer has exemption of excsie duties and sales Tax. (In this case it is consider as Export) under ARE1

3) From SEZ plant -Sales to Foreign Customer

In this case nill tax. In case of export exemption of both Excise ans Sales tax. - Under ARE1

Regards,

PM

[Former Member]

Hi,

1. From SEZ plant- Sales to domestic customer----normal sales

2. From SEZ plant- Sales to SEZ customer--Tax exemption(Sales taxes)

3. From SEZ plant -Sales to Foreign Customer(Nill tax-No Excise/no sales tax)

2 scenarion will not comes under Deemed exports..

Deemed Exports can be EOU or if customer will produce Ct3 license