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Introduction
A new policy has been introduced
effective from 1.4.2000 for setting up of
Special Economic Zones
in the country with a view to provide an
internationally competitive and hassle free
environment for exports. Units may be set up in
SEZ for manufacture, re-conditioning, and repair
or for service activity. All the import/export
operations of the SEZ units will be on
self-certification basis. The units in the Zone
have to be a net foreign exchange earner but
they shall not be subjected to any
pre-determined value addition or minimum export
performance requirements.
Special
Incentives
- Income Tax benefit under (
80 IA ) to developers for any block of 10
years in 15 years
- Duty free import/domestic
procurement of goods for development,
operation and maintenance of SEZs.
- Exemption from Service Tax
/CST.
- Income of infrastructure
capital fund/co. from investment in SEZ
exempt from Income Tax
- Investment made by
individuals etc in a SEZ co also eligible
for exemption u/s 88 of IT Act
- Developer permitted to
transfer infrastructure facility for
operation and maintenance.
- Generation, transmission
and distribution of power in SEZs allowed
- Full freedom in allocation
of space and built up area to approved SEZ
units on commercial basis.
- Authorised to provide and
maintain service like water, electricity,
security, restaurants and recreation centres
on commercial lines.
Conditions of setting up of Unit under
SEZ scheme
- SEZ units have to achieve
positive net foreign exchange earning
- The units have to provide
periodic reports to the Development
Commissioner and Zone Customs
- The units are also to
execute a bond with the Zone Customs for
their operation in the SEZ.
- Any company set up with FDI
has to be incorporated under the Indian
Companies Act with the Registrar of
Companies for undertaking Indian operations
Locations
At
present eight special
Economic Zones
are functional where enterprise can be set up
»
Kandla
»
SEEPZ
»
Cochin
»
Surat
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