Exemption from Special Additional Duty of Customs (SAD) on goods cleared from the SEZ / FTWZ into the DTA Clarification

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..... l Additional Duty of Customs (SAD) on goods cleared from the SEZ / FTWZ into the DTA Clarification - Regarding It has been brought to the notice of the Board that varying practices are being followed by the field formations regarding exemption from SAD on goods cleared from SEZs / Free Trade Warehousing Zones (FTWZ) into the DTA under notification No. 45/2005-Customs, dated 16.05.2005. The issue .....

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..... unit in the DTA, no sales tax is levied. Hence, a condition was imposed that the exemption from SAD would be available only if such goods, when sold in the DTA, are not exempted from VAT / sales tax. The intention was to avoid double taxation. In the case of clearances which are in the nature of stock transfer from SEZ / FTWZ unit to the DTA unit for self-consumption i.e. otherwise than for sale .....

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