Saturday, August 13, 2011

TAX SOP WINDOW FOR SEZ UNITS TO STAY OPEN LONGER

Incentives & facilities offered to units in SEZ


  • 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 five years, 50% for next five years and 50% of the ploughed-back export profit for next five years. MAT to apply.
  • External Commercial Borrowing by SEZ units up to $500 million in a year without any maturity restriction through recognized banking channels.
  • Exemption from central sales tax.
  • Exemption from service tax.
  • Single-window nod for central & State-level approvals.
  • Exemption from state sales tax and other levies as extended by the respective state governments.
Major incentives & facilities for SEZ developers

  • 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 central sales tax
  • Exemption from service tax.

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