Sez
This query is : Resolved
29 October 2011
Hi
What is an SEZ -the concept? What benefits does a company located in SEZ have?
Thnx
Kirti
What is an SEZ -the concept? What benefits does a company located in SEZ have?
Thnx
Kirti
29 October 2011
India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla in 1965. With a view to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000.
Incentives and facilities offered to the SEZs
The incentives and facilities offered to the units in SEZs for attracting investments into the SEZs, including foreign investment include:-
* Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units
* 100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.
* Exemption from minimum alternate tax under section 115JB of the Income Tax Act.
* External commercial borrowing by SEZ units upto US $ 500 million in a year without any maturity restriction through recognized banking channels.
* Exemption from Central Sales Tax.
* Exemption from Service Tax.
* Single window clearance for Central and State level approvals.
* Exemption from State sales tax and other levies as extended by the respective State Governments.
The major incentives and facilities available to SEZ developers include:-
* Exemption from customs/excise duties for development of SEZs for authorized operations approved by the BOA.
* Income Tax exemption on income derived from the business of development of the SEZ in a block of 10 years in 15 years under Section 80-IAB of the Income Tax Act.
* Exemption from minimum alternate tax under Section 115 JB of the Income Tax Act.
* Exemption from dividend distribution tax under Section 115O of the Income Tax Act.
* Exemption from Central Sales Tax (CST).
* Exemption from Service Tax (Section 7, 26 and Second Schedule of the SEZ Act).
Incentives and facilities offered to the SEZs
The incentives and facilities offered to the units in SEZs for attracting investments into the SEZs, including foreign investment include:-
* Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units
* 100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.
* Exemption from minimum alternate tax under section 115JB of the Income Tax Act.
* External commercial borrowing by SEZ units upto US $ 500 million in a year without any maturity restriction through recognized banking channels.
* Exemption from Central Sales Tax.
* Exemption from Service Tax.
* Single window clearance for Central and State level approvals.
* Exemption from State sales tax and other levies as extended by the respective State Governments.
The major incentives and facilities available to SEZ developers include:-
* Exemption from customs/excise duties for development of SEZs for authorized operations approved by the BOA.
* Income Tax exemption on income derived from the business of development of the SEZ in a block of 10 years in 15 years under Section 80-IAB of the Income Tax Act.
* Exemption from minimum alternate tax under Section 115 JB of the Income Tax Act.
* Exemption from dividend distribution tax under Section 115O of the Income Tax Act.
* Exemption from Central Sales Tax (CST).
* Exemption from Service Tax (Section 7, 26 and Second Schedule of the SEZ Act).
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29 October 2011
please also read the linked file:
https://www.caclubindia.com/share_files/comprative-incentive-among-sez-eou-and-general-unit--23721.asp
https://www.caclubindia.com/share_files/comprative-incentive-among-sez-eou-and-general-unit--23721.asp
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29 October 2011
welcome in ca club india....
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31 October 2011
THANKS KIRTI FOR THANK ME..
THANKYOU..
THANKYOU..
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