How is the SEZ different from EOUs?
bcshettyco
(Chartered Accountant In Practice)
(65 Points)
Replied 09 June 2012
SEZ is a clearly demarcated enclave with specified Processing & Non - Processing areas. EOUs are stand-alone units which could be located in any part of the country as per investor's choice. EOUs are under customs bonding & are under physical control of jurisdictional Central Excise Offices. SEZs are within an enclave which is declared port for imports & exports & are outside the jurisdiction of territorial customs set up.
PavithraSelvan
(Student)
(40 Points)
Replied 09 June 2012
Thank You Sir:):)
I need some clarifications with regard to SEZ.
1.Is FDI permissible setting up of units in SEZs?
2.Is merchant exports allowed by SEZ units?
Thanks In advance
Pavithra
PavithraSelvan
(Student)
(40 Points)
Replied 09 June 2012
Thank You Sir:):)
I need some clarifications with regard to SEZ.
1.Is FDI permissible setting up of units in SEZs?
2.Is merchant exports allowed by SEZ units?
Thanks In advance
Pavithra
PavithraSelvan
(Student)
(40 Points)
Replied 09 June 2012
Can inputs for sub-contracting activities be procured directly from DTA sources?
Is inter unit sales are permitted in SEZ?
Sanket
(!..Live to Give..!)
(16427 Points)
Replied 09 June 2012
Yes 100% FDI is allowable (except for a few prohibited list of industries eg. armaments, drugs and such sensitive items).....
bcshettyco
(Chartered Accountant In Practice)
(65 Points)
Replied 09 June 2012
For your query on FDI :
100% FDI Investments is allowed under provision of SEZ Act, 2005 under automatic route.
For your second query on merchant export :
Yes; exports through a merchant exporter or a status holder is permitted subject to
requirements under Rule 46 (10).
For your third query on "Sub-contracting .........................DTA sources"
No direct procurement or import of inputs for sub-contracting is permitted.
For your Final query :
Yes it is permitted.
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