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SEZ vs EOU vs DTA (https://taxguru.in/corporate-law/sez-eou-dta.html)

 Abhishek Jain (https://taxguru.in/author/abhishekj12/) |

| Corporate Law (https://taxguru.in/category/corporate-law/) - Articles
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This article seeks to highlight certain key
differences between the Special Economic
Cloud accounting Zone (SEZ) units, Export Oriented Units (EOU)
solution and Domestic Tariff Area (DTA) units[1] in
terms of their various benefits and compliances
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Zoho Books
Subject SEZ Unit EOU Unit DTA Unit

Area of Can be set up only at Can be set up Can be set up

operations / designated sites anywhere in India anywhere in India
Setting Up notified as SEZ

Authority / Approval required Approval required No approval

approval for under the SEZ laws; to under the FTP; to be required
setting up be granted by the granted by the
Development jurisdictional
Commissioner of the Development
concerned SEZ Commissioner
Imports All imports are All imports are Imports are allowed
exempt from payment exempt from on payment of
of all types of payment of all types applicable customs
customs duties of customs duties duties (However,
(BCD, SWS, IGST, (BCD, SWS, IGST, benefit of the
Cess, etc) Cess, etc) advance
authorization and
EPCG Scheme can
be availed)

Procurement from All procurements Applicable GST is Applicable GST is

DTA which are required for payable on such payable on such
authorized operations procurements (of procurements (of
are allowed without which ITC is which ITC is
payment of available) available)
applicable GST
(under LUT) or on
payment of GST (of
which refund can be
obtained)

DTA Clearances All DTA clearances are All DTA clearances Applicable GST is
allowed on payment are allowed on payable on such
of applicable payment of clearances. Only tax
customs duties applicable GST. invoice required to be
(BCD, SWS, IGST, Additionally, benefit issued.
Cess, etc). Bill of entry of BCD exemption
required to be filed by availed on imported
the importer or the inputs used in the
SEZ unit (on behalf of manufacture of
the importer) finished product
cleared in DTA is
required to be
surrendered / paid
along with interest.
Only tax invoice
required to be issued

Income Tax Withdrawn Withdrawn No benefits available

benefit (deductions available (deductions available
to units’ setup prior to to units’ setup prior to
July 2020) April 2012)

Erstwhile MEIS Available Available Available

benefit
Existing RoDTEP Not Available (based Not Available Available
benefit on press note and (based on press note
information available and information
on ICEGATE portal, available on
official / statutory ICEGATE portal,
document awaited) official / statutory
document awaited)

Existing SEIS Available Not Available Available

Benefit

Duty Drawback Not available Not Available Available

benefit

Export on Have the option to pay Do not have the Have the option to
payment of IGST applicable IGST and option to pay pay applicable IGST
later claim refund of applicable IGST and and later claim
the same later claim refund of refund of the same
the same. Mandatory
to supply the same
without payment of
applicable GST
under LUT

Compliances A number of A number of Only GST related

compliances (setting compliances compliances
up, timely extension, (records required to
APRs, QPRs, MPRs, be maintained as per
ID Cards for the customs laws,
employees) under the setting up, timely
SEZ laws. Additionally, extension / renewals,
GST return filing APRs, QPRs,
related compliances MPRs). Additionally,
required to be met. GST return filing
related compliances
required to be met.

Authorities to deal NSEZ authorities, NSEZ authorities and GST authorities

with GST authorities and GST authorities
customs authorities
posed at the NSEZ

Applicable SEZ Act, Customs Act FTP & HBP, Customs Customs Act and
Indirect Tax laws and GST Act Act and GST Act GST Act

Excise duty Fuel like HSD, natural Fuel like HSD, No benefit such
benefit gas etc can be natural gas etc can available
procured without be procured without
payment of excise payment of excise
duty for authorized duty for authorized
operations. operations.