Sez

A Special Economic Zone (SEZ) is a geographical region that has economic and other laws that are more free-market-oriented than a country's typical or national laws. "Nationwide" laws may be suspended inside a special economic zone.

The category 'SEZ' covers , including Free Trade Zones (FTZ), Export Processing Zones (EPZ), Free Zones (FZ), Industrial parks or Industrial Estates (IE), Free Ports, Urban Enterprise Zones and others.

Usually the goal of a structure is to increase foreign direct investment by foreign investors, typically an international business or a multinational corporation (MNC)................................

Special economic zone is a particular area inside a state which acts as foreign territory for tariff and trade operations. Govt. provides tax exemption (IT, Excise, customs, sales etc.), subsidised water and electricity etc.

SEZ can be sector specific or multi product sez. It helps in the development of infrastructure of the area around the SEZ, provides employment to ppl, makes the exports more viable. All this will helps the country's products to become mor competitive vis-a-vis providing all round development of region.

It should be noted that if 100 acres are alloted for SEZ, then only 30-35% of area is used for setting up plants. rest of the area is used to provide housing facilities, malls, multiplexes etc.
Also Tax exemption is for specific period say for 10 yrs or so.
 

Designated areas in countries that possess special economic regulations that are different from other areas in the same country. Moreover, these regulations tend to contain measures that are conducive to foreign direct investment. Conducting business in a SEZ usually means that a company will receive tax incentives and the opportunity to pay lower tariffs.
 

Indian companies also can avail the benefits of SEZ....

ya ur intension is right,,,SEZ is not applicable to all the Indian companies,,,inorder to get the benifits of SEZ , they must have to register under SEZ  and their business place must be in special economic zone places,,,,

Hi Goel

It is because that these industries were working for the Export type of activities.........

Mainly the indian govt is providing a greater exemption to Exports,So that only SEZ is getting Lower Traiff and Excemptions.

Registering in SEZ is meant for Availing Export excemption and When they trade in inside india they are Same as  other Units.

Yeah Its Ok..............

It is available Suggested Answers for Nov-2011 examination.