Purchase Return From SEZ Area to DTA, VAT + CST

[peter john]

Dear Sirs,

Warm Wishes, In an SEZ Purchase,

The purchases from DTA will be exempted through ARE 1 for excise duties and the VAT/CST is exempted.

In case of Rejection by SEZ Unit, the excise duty is applicable as the materials purchased by SEZ on basis of Exemption through ARE 1.

Is VAT/CST to be collected by SEZ Unit from the DTA Unit at the time of Removal of Rejection?

Kindly clarify.

Thanks

Peter

Posts / Replies

[YAGAY AND SUN]

Dear Peter,

There is no such Provision in the TNVAT Act read with Rules made there under. However, Form I to the extent of rejection amount would not be issued by the SEZ.

Regards,

YAGAY and SUN

(Management, Business & Indirect Tax Consultants)

[peter john]

Thank you sir