Sez

The SEZ unit cannot be formed out of splitting/reconstruction of existing business activities.
However, this condition shall not apply in respect of Unit which is formed as a result of re establishment,
reconstruction or revival of business of assessee as is referred to in section 33B of
the Income Tax Act, 1961 and in the circumstances/period specified in that section.

Transfer of used capital goods or business from existing DTA or STPI unit to SEZ is permissible
subject to the condition that such used capital goods or business will not get income tax
exemption benefit when the value of such goods or business exceeds the limit of 20% of the
total capital goods. Final decision regarding the Income Tax exemption lies with Income tax
Department.