TT Epaper
The Telegraph
TT Photogallery
 
IN TODAY'S PAPER
WEEKLY FEATURES
CITIES AND REGIONS
ARCHIVES
Since 1st March, 1999
 
THE TELEGRAPH
 
 
CIMA Gallary
Email This Page
Rebate joy for SEZ suppliers

New Delhi, March 21 (PTI): Consignments from domestic area to customs bound special economic zones (SEZs) should be treated as exports, thus becoming eligible for duty rebates as applicable to offshore shipments, the revenue department has said.

“The settled position that rebate under Rule 18 of the Central Excise Rules, 2002, is admissible for supplies made from domestic tariff area (domestic market) to SEZ,” the Central Board of Excise and Customs has said in a directive to its field staff.

Rule 18 grants rebate on duty on raw materials used to manufacture goods for export.

The CBEC had to come out with the clarification following confusion over whether duty benefits given to exports should be extended to supplies going to SEZs.

The clarification was given because a view was put forth that rebate under Rule 18 was admissible only when the goods were exported out of the country and not when they were supplied to an SEZ.

The department had received representations from various field formations and units on the issue of the admissibility of rebate.

To boost exports, the government provides sops such as duty refund on imported raw material and concessional finance.

Formal approval has been accorded to 575 SEZ proposals. A total of 105 have commenced exports.

Under the SEZ act, units in the zones are given 100 per cent tax exemption on their income in the first five years and 50 per cent in the next five years.

Top
Email This Page
 
 
" "