S. 26 of Special Economic Zones Act, 2005 (SEZ Act) exempts units/ developers in SEZ from payment of any duties or taxes on goods/ services procured from Domestic Tariff Area (DTA) for authorised operations.
S. 16 of Integrated Goods and Services Tax Act, 2017 (IGST Act) provides for the facility of zero-rated supply of goods/ services to SEZ units for authorised operations. Rule 30 of Special Economic Zones Rules, 2006 (SEZ Rules) prescribes the requirement to obtain endorsement for goods/ services. Further, as per Rule 89 of Central Goods and Services Tax Rules, 2017 (CGST Rules), the application of refund for supplies made to SEZ unit/ developer shall be filed by:
- supplier of goods after such goods have been admitted in full in SEZ for authorised operations, as endorsed by the specified officer of the Zone.
- supplier of services along with evidence regarding receipt of services for authorised operations as endorsed by the specified officer of the Zone.
The Industry, in the past, had been facing lot of issues in obtaining endorsement for services procured in SEZs. In this regard, the Ministry of Commerce and Industry (MoCI) introduced the SEZ Online system which enables electronic filing and processing of SEZ related transactions that SEZ developers, co-developers and units have with SEZ administration.
Data Service Procurement Form (DSPF)
The “DTA Services Procurement Form (DSPF)” has been added to the SEZ Online System to ease the recording, review, and approval of all Service Invoices for Services obtained by SEZ Units / Developers from DTA Suppliers as “Zero Rated Supply for Authorized Operations.”
Significant features of this DSPF form
- Multiple invoices produced by multiple/different DTA vendors over a month can be uploaded at once and sent to DC Office for assessment and approval.
- The entire process of uploading DSPF, approval/endorsement by SEZ officers, and the acknowledgment to DTA that the services supplied by SEZ unit are approved is completed online and delivered to the DTA service provider’s registered email address.
- The essential details must be filled out on an Excel template, which must be attached to the DSPF form. Important mandatory information is shown below for your convenience:
- Invoice Specifications (Type/Date/Number/Amount)
- The SAC (Service Accounting Code) must be chosen from the dropdown menu, and the service description will appear immediately.
- DTA Supplier Email-ID
- SEZ must specify if the supply is subject to a bond/Letter of Undertaking (LUT) or is subject to IGST payment.
- Without a payment option, the Bond/ LUT details must be recorded.
- The dropdown menu must be picked from the approved list of services (66 approved lists). Management Consultancy Services that have recently been approved are not featured in the dropdown menu.
- If UAC has expressly accepted service as a good service for exemption, the service description can also be specified under the heading “Any additional services as approved by DC offices.
The Online functionality of the DSPF
The SEZ web portal created the DSPF to address the issue of obtaining an endorsement from an authorized or specified authority for services received by an SEZ unit or developer.
The “DTA Service’s Procurement Form (DSPF)” is a new module for recording and submitting details of all invoices about services obtained by SEZ Units / Developers from DTA Suppliers as “Zero Rated Supply for Authorised Operations.”
SEZ Units, Developers, and Co-developers will be able to submit service invoices for DTA services used in the previous month. During a month, details of various invoices generated by multiple distinct DTA vendors can be entered in a single transaction and sent to DC Office for assessment and approval.
Prescribed Authority for Approving DSPF
SEZ Online system issued a notice on the 5th of September 2019 directing the deployment of the DSPF above form, stating that “Details of all service procurements online through this form” may be adopted as an obligatory process for service procurement beginning in October 2019.
The notice further detailed the approval hierarchy, stating that DSPF can be approved by an Authorized officer or validated by an Authorized officer before being sent to a Specified officer for approval.
FAQs
What is a Data Service Procurement Form?
A Data Service Procurement Form is a document used by organizations to formally request and procure data services from external vendors or service providers. It outlines the requirements, scope, terms, and conditions for obtaining data-related services such as analytics, storage, or management
Why is a Data Service Procurement Form needed
This form is essential to ensure clarity and transparency between the service provider and the organization. It helps outline expectations, service requirements, pricing, and delivery timelines, ensuring that both parties are aligned on the terms of the agreement.