Visakhapatnam Special Economic Zone

Topics: Special Economic Zone, International trade, Tax Pages: 3 (947 words) Published: February 15, 2013
Visakhapatnam Special Economic Zone (VSEZ) formerly known as VEPZ was established in 1989 offers state of the art infrastructure coupled with liberal package of incentives, concessions and support services. The export-friendly administrative set up ensures disposal of all approvals and clearances instantly. SEZ’s (Special Economic Zones) are a geographic location within a country which represents an ideal working environment with world class infrastructure facilities and 24 X 7 working environment with flexible working hours.

VSEZ UNITS:
There are approximately 105 SEZ units are present in VSEZ and around 65 of them are functional namely Dr.Reddy’s laboratories Ltd , Nitin fire protection industries Ltd, Clean cities biodiesel India Pvt Ltd, HBL power systems Ltd, L.I.D. jewellery Pvt. Ltd, Worldwide diamond mfrs. Pvt. Ltd. are the major ones among the VSEZ Units.

KEY POINTS:

1. Advantages of setting up an SEZ unit:
The incentives and facilities offered to the units in SEZs for attracting investments into the SEZs, including foreign investment include:- i.Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units ii.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. iii.External commercial borrowing by SEZ units upto US $ 500 million in a year without any maturity restriction through recognized banking channels. iv.Exemption from Central Sales Tax and Service Tax, minimum alternate tax (MAT) under section 115JB of the Income Tax Act. v.Single window clearance for Central and State level approvals. vi.Exemption from State sales tax and other levies as extended by the respective State Governments.

2. Facilities available in VSEZ:
Following is the list of facilities in VSEZ
Total area 360.5 Acres
Developed Area...
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