[Limitation] In SQL Server 2008 and later versions, time zone information is fully supported for xs:date, xs:time, and xs:dateTime values for XML Schema validation. With SQL Server 2005 backwards-compatibility mode, time zone information is always normalized to Coordinated Universal Time (Greenwich Mean Time). For elements of dateTime type, the server converts the time provided to GMT by using the offset value ("-05:00") and returning the corresponding GMT time. [Item] 
Time zone information