Sez Incentives and Facilities

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  • Topic: Tax, Tax exemption, Reserve requirement
  • Pages : 4 (1219 words )
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  • Published : February 11, 2013
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sez incentives and facilities

(I) CUSTOMS & EXCISE

* SEZ unit may import or procure from the domestic sources, public or private bonded warehouses, or international exhibitions held in India, duty free, all goods, namely capital goods, raw materials, consumables, spares, packing materials, office equipments, DG sets etc. without any licence or specific approvals, including goods required for setting up of unit. * Good imported/procured locally duty free may be utilized within validity period of LOP. (II) INCOME TAX

* 100% Income Tax exemption under section 10A of the Income Tax Act, 1961 for first 5 years, 50% for 3 years thereafter to the SEZ units (for unit set up prior to 01-04-2005). * 100% Income Tax exemption under section 10AA of the Income Tax Act, 1961 for first 5 years, 50% for next 5 years and for next 5 years 50% of the profit if such profit is reinvested to the SEZ units who begins to manufacture or produce articles or things or provide any services during the previous year relevant to any assessment year commencing on or after the 1st day of April, 2006. (III) FOREIGN DIRECT INVESTMENT:

* FDI upto 100% allowed through the automatic route for all manufacturing activities in Special Economic Zones (SEZs), except for the following activities:- * Arms and ammunition, explosives and allied items of defense equipment, defense aircrafts and warships. * Atomic substances.

* Narcotic and psychotropic substances and hazardous chemicals. * Distillation and brewing of alcoholic drinks and
* Cigarettes/Cigars and manufactured tobacco substitutes. * Sectoral norm as notified by Government shall apply to foreign investment in services. * The cases not covered by automatic route are considered and approved by the Board of Approvals. (IV) OFF-SHORE BANKING UNITS (OBUS):

* Setting up of Off-shore Banking Units allowed in SEZs. These banks are virtually foreign branches of the banks but located in...
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