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Former Member

Sale from 'SEZ'

Hi to all !

I have an issue in sales from SEZ. I need to treate it as the customer is Importing it from outside india as per the SEZ law as given below,

'' e. Any sales from SEZ to DTA (DOMESTIC TARIFF AREA) will be treated as import and import duty will be applicable as per GOI policy. Sales tax will be applicable to SEZ goods as applicable to other imported goods. Same Rules and Procedure will be applicable to SEZ goods as applicable to normal imports."

So, I need to charge the customer for the following same like as in purchase,

step condition rate value

10 Ass VALUE 100.000

20 Basic Customs Duty 10% 10.000

30 *SUB TOTAL(10+20) * 110.000

40 CVD 14% 15.400

50 ED CESS ON CVD 2% 0.308

60 S&H ED CESS ON CVD 1% 0.154

70 TOTAL CVD (405060) 15.862

80 TOTAL CUSTOM DUTY (20+70) 25.862

90 ED CESS ON Customs duty 2% 0.517

100 S&H ED CESS on customs duty 1% 0.259

110 TOTAL (108090+100) 126.638

120 Additional ED / sales tax 4% 5.066

130 *TOTAL (110+120) * 131.703

Note: In some scenario they charge sales tax instead of AED.

- Taxinj procedure is used.

- Anybody can help me to configure this requirement.

- No excise invoice required

Thanks in advance.

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2 Answers

  • Jun 11, 2008 at 06:45 AM

    Dear Bhavana

    May be this thread could be of helpful to you

    [treatment of SEZ sales |treatment of SEZ sales;


    G. Lakshmipathi

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    • Former Member

      Thank you for your reply.

      But I need to configure the sale from a SEZ to domestic customer, not to a SEZ customer. I am configuring it with Z-condition types. But my I am looking for a better solution from experts.

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    Former Member
    Jun 11, 2008 at 07:12 AM

    As far as I am aware off, Sales into DTA will be excisable and not considered as Imports. However the duty to be paid as excise from a SEZ should be equal to the Import duty on the goods.

    Again there is concessional duty of 50% involved subject to the meeting of NFEP norms as per the Import policy.

    The reason I say this is when you sell from an SEZ, you do it against a Invoice from the duty free area into a DTA whereas in the case of Imports you require to file an Import General Manifest and a Bill of Entry. Clearly his is not applicable here. So the case should be clearly of excise to be paid and not import duty which can be configured in CIN.

    Quote from the latest Customs manual applicable to SEZs section 25

    Levy of Central Excise Duty on Goods Produced or Manufactured by SEZ Units and Cleared into Domestic Tariff Area :

    25. In terms of section 3 of the Central Excise Act, 1944, the excise duty leviable on goods manufactured in an SEZ unit and cleared into Domestic Tariff Area is an amount equal to the customs duty leviable under section 12 of the Customs Act, 1962 or under any other law for the time being in force on like goods produced or manufactured outside India, if imported into India. Thus, the duty is worked out exactly in the same manner as applicable to imported good



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