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Many customers are looking to define a legal entity as SEZ unit. Currently, the option is available to mark EPZ code for Customers and vendors only. This means domestic companies interacting with SEZ units can record transactions but if the company itself is SEZ units then not possible to execute transactions.
Category: Tax
STATUS DETAILS
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Comments

P

Just a slight correction to above text on the no. of days within which the payment should be made by the Purchasing company. The only correction is that the same is required by MSME Act, 2006 & not as per the GST rules. Rest all is fine.

Category: Tax

P

1) LUT Certificate number, date valid From and To, received from Vendor is also needed to define in Vendor master. This is important because if the entity (company) is in SEZ and when it makes purchases from the Vendor having LUT Certificate, it is tax free under IGST Component. This is the part of GST Return details.

2) There should also be a facility to mark the Vendor as SSI (which is there). But the missing functionality is, there should be a report which will give the information of GST Vendor payment term of 45 days v/s actual payment paid date. As per GST rule payment to SSI unit Vendor should be made by the purchasing company within 45 days. If paid beyond 45 days, interest is payable to vendor on the paid amount. This provision is made to boost small scale industries in India to increase local business and employment.

3) (Whether SEZ or non-SEZ), companies in India gets some incentive from the Govt. Of India if export is made. That accountability feature should be included - optional though.

4) SEZ functionalities are GST registration specific. Same company can have another GST registration number for another office within the same state or different state in India. All GST relevant reports should be grouped by the registration number (which is not the case in almost all the Sales tax reports). Mainly, complete data in tax document - View Input details tab e.g. City and state of Origin, City and state of consumption and other all fields should be available in some report that is exportable in excel, grouped by Company registration number and divided in sales and purchase. That's major missing.

Category: Tax