Investment In SEZs,SEZ Investments,India,Special Economic Zones In India

Home | Contact Us |

Investment in SEZs

The Government of India (GOI) has formulated a policy for setting up Special Economic Zones (SEZ) in India. SEZs are proposed to be specially delineated duty free enclaves for the purpose of trade, operations, duty and tariffs. These zones are self-contained and integrated having their own infrastructure and support services.

Several fiscal and regulatory incentives to developers of the SEZs as well as units within these zones have been provided. In addition to the incentives offered by the Central SEZ Policy, there is state policy which offers several additional incentives to the units within these zones.

An SEZ may be set-up in the public, private, or joint sector and/or by a state government. The policy requires the minimum size of an SEZ to be 1000 hectares. Within these zones, units may be set-up for the manufacture of goods, provisioning of services, and other activities including processing, assembling, trading, repairing, reconditioning, making of gold/silver, platinum jewellery etc.

The Policy allows 100 per cent foreign direct investment ("FDI") in most manufacturing activities.

Fiscal Incentives

Period

Amount

Income Tax Holiday (Units In Sez)

•	For first five years
•	Next five years
•	next five years

•	100% of the eligible profits or gains
•	50% of the eligible profits or gains

Income Tax Holiday (Developer)

Deduction of 100% of profits derived from developing a SEZ for a Period of 10 consecutive assesment years out of the first 15 years from the year in which the SEZ is notified by the Central Government

Capital Gain

Dividend Distribution Tax

Exemption from Dividend Distribution Tax declared or paid after 1st April, 2005 by an enterprise engaged in developing or developing and operating or developing, operating and maintaining a SEZ.

Minimum Alternate Tax

Exemption from the provisions of Minimum Alternate Tax for developer as well as SEZ unit.

Customs Duties

Exemption from customs duties for development of SEZ for authorized operation approved by BOA

Service Tax

Exemption from Service Tax under chapter VI of the Finance Act 1994 on taxable services provided to a developer or unit to carry on authorized Operation in an SEZ

Securities Transaction Tax

Exemption from the Securities Transaction Tax leviable under Section 98 of the Finance (No.2) Act 2004 in case the taxable securities transaction are entered into by a non-resident through the International Finance Service.

Import Duty

Duty free Import domestic procurement of goods for development, Operation & maintenance of SEZ units.

Excise Duty

Exemption from any duty or excise, under the Central Excise Act, 1944 or the Central Excise Tariff Act, 1985 or any other law for the time being in force, on goods brought from Domestic Tariff Area to a Special Economic Zone or Unit, to carry on the authorized operations by the Developer or entrepreneur

Central Sales Tax/VAT

Exemption from Central Sales Tax/VAT on sale or purchase or goods

Other Concessions :

Environment Protection Act

Information Technology Sezs do not require environment clearance for development of Sezs Public hearing is not exempted and process of Environment impact assessment (EIA) as laid in the notification of the ministry of Environment would have to adhered to.

Companies Ac

Enhanced limit of Rs. 2.4 crores p.a. allowed for Managerial remuneration. Agreement to opening of regional office of register of Companies is Sezs. Exemption from requirement of domicile in India for 12 months prior to appointment as Director.

Employees Provident Fund

As per Ministry of labour, the state government may apply for exemption to the Central Government under section 16(2) of the Employees Provident Fund & Miscellaneous Provision Act 1952 from the applicability of the provision of the said Act for 5 years

Drugs & Cosmetics Act

Exemption from Port Restriction Under Drugs & Cosmetic Rules

INVESTMENT RES. / COM + INVESTMENT RENTED PROPERTY + LONG TERM INVESTMENT + ASSURED RETURN INVESTMENT +
STOCK OPTIONS + SHORT TERM GAINS + COOPERATIVE HOUSING + PROJECT INVESTMENT

Website Designed & Promoted by