Section 20(2) in The Karnataka Value Added Tax Act, 2003
(2)Goods sold by a registered dealer to any other registered dealer who is a unit located in any special economic zone established under authorisation by the authorities specified by the Central Government in this behalf or who is an Export Oriented Unit, shall be exempt from the tax payable under this Act.Explanation 1. - For the purposes of this section, the expression "special economic zone" has the meaning assigned to it in clause (iii) to Explanation 2 to the proviso to section 3 of the Central Excise Act, 1944 (Central Act 1 of 1944).Explanation 2. - For the purpose of this section, "Export Oriented Unit" means a unit certified as such by the Central Government.
