Documentation, Verification and Reconciliation Controls in SEZ Domestic Service Procurement: A Qualitative Process Analysis

Author

Prasad Prashant Waghulde


Abstract

Special Economic Zone (SEZ) units that buy services from suppliers in the Domestic Tariff Area (DTA) must document each transaction so that it can be verified, endorsed and reconciled. Because a service leaves no physical delivery record, proof of procurement rests almost entirely on documents. This paper examines the domestic service procurement process, focusing on the Domestic Service Procurement Form (DSPF), invoice verification and reconciliation, as observed during a 2026 internship with an SEZ consultancy in Pune. The study is descriptive, exploratory and qualitative, based on purposive observation of work for two client accounts, discussions with team members, permitted process documents and secondary sources. No quantitative performance data were available, and none are reported. The process is mapped into stages and control points and interpreted through internal-control and process-efficiency concepts. The observations suggest that completeness of documents at intake influences how smoothly cases progress, that invoice verification works as a preventive control and reconciliation as a detective one, and that structured exception handling and checklists may reduce repeated follow-up. A pre-verification checklist, an exception tracker, a knowledge repository and indicators for later measurement are proposed. The findings come from two engagements and cannot be generalised statistically.


Keywords

Special Economic Zone; Domestic Service Procurement; DSPF; Invoice Verification; Reconciliation; Internal Controls; Procurement Compliance; Process Efficiency



Full Text:

Download Paper PDF


References


  • Committee of Sponsoring Organizations of the Treadway Commission. (2013). Internal control—Integrated framework: Executive summary, framework and appendices, and illustrative tools for assessing effectiveness of a system of internal control. American Institute of Certified Public Accountants.
  • Davenport, T. H., & Short, J. E. (1990). The new industrial engineering: Information technology and business process redesign. Sloan Management Review, 31(4), 11–27. http://hdl.handle.net/1721.1/48613
  • Doyle, J., Ge, W., & McVay, S. (2007). Determinants of weaknesses in internal control over financial reporting. Journal of Accounting and Economics, 44(1–2), 193–223. https://www.sciencedirect.com/science/article/pii/S0165-4101(06)00090-5
  • Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, 14(4), 532–550.
  • Government of India. (2005). The Special Economic Zones Act, 2005(Act No. 28 of 2005). https://prsindia.org/files/bills_acts/acts_parliament/2005/the-special-economic-zones-act-2005.pdf
  • Government of India. (2006). The Special Economic Zones Rules, 2006(as amended; consolidated version published by the Department of Commerce, Ministry of Commerce and Industry). https://www.sezindia.gov.in/sites/default/files/sez_rules_amendments/23SEZRulesincorporatingallamendments.pdf
  • Haynes, A. B., Weiser, T. G., Berry, W. R., Lipsitz, S. R., Breizat, A.-H. S., Dellinger, E. P., … Gawande, A. A. (2009). A surgical safety checklist to reduce morbidity and mortality in a global population. New England Journal of Medicine, 360(5), 491–499. https://doi.org/10.1056/NEJMsa0810119
  • Mukherjee, A. (Project Leader). (2015). Revisiting special economic zones (SEZ): A review and evaluation of India's SEZ policy. Indian Council for Research on International Economic Relations. https://icrier.org/?p=1312
  • (2023, January 25). Challenges in applying DTA services procurement form and obtaining endorsement. NASSCOM Community. https://community.nasscom.in/communities/public-policy/challenges-applying-dta-services-procurement-form-obtaining-endorsement
  • van Weele, A. J. (2005). Purchasing and supply chain management: Analysis, strategy, planning and practice(4th ed.). Thomson.
  • Yin, R. K. (2018). Case study research and applications: Design and methods(6th ed.). SAGE Publications.

Share your valuable work from Social Media Buttons