Sez and Eou

How SEZ is different from EOU???
 Supplies made to SEZ from DTA (Domestic Tariff Area) are “Exports”, in respect to EOU they are treated as “Deemed Export”
 Units to be located within specified Zones in respect to SEZ, where as for EOU units can be set up at any prescribed places as declared.
 In SEZ there is physical control of over movement of good, no such control in case on EOU
 No minimum investment limit for SEZ, where as for EOU minimum investment limit in P&M is Rs. 100 lakhs as on date of commercial production
 Customs clearance with in zone itself, for EOU fast track clearance scheme for clearance of imported consignments
 Supplies from SEZ to DTA is normal, Whereas for EOU sale within India on payment of excise duty /customs duty of similar goods is payable and sometimes as a % of normal customs duty
 In respect to sales (SEZ) no limit, except to have positive net foreign exchange (NFE), (EOU) sale UPTO 50% (FOB on sales of previous year) in DTA and has to fulfill positive net foreign exchange.
 In relation to restriction under companies act on managerial remuneration are not applicable for SEZ, applicable for EOU
 Physical exit is necessary in case of de-bonding as SEZ, for EOU unit can exit (de-bond) with permission of Development Commissioner, on payment of applicable duties.
 SEZ supplier need not pay CST or service tax, EOU has to pay CST or service tax but eligible for refund.