SEZ India!

SEZ India!
Palash Biswas
Contact: Palash C Biswas, C/O Mrs Arati Roy, Gosto Kanan, Sodepur, Kolkata- 700110, India. Phone: 91-033-25659551
Email: alashchandrabiswas@gmail.com">palashchandrabiswas@gmail.com
Tax benefits available to SEZ developers include :-
Exemption from customs/excise duties for development of SEZs for authorized operations approved by the BOA.
Supplies from DTA to SEZ shall be exempt from payment of any Central Excise duty under Rule 19 of Central Excise Rules, 2002. Similarly, such supplies shall be eligible for claim of rebate under Rule 18 of Central Excise Rules, 2002 subject to the fulfillment of conditions laid there under. The provisions relating to exports under Central Excise Act, 1944 and rules made there under may be applied, mutatis-mutandis, in case of procurement by SEZ units & SEZ developer from DTA for their authorized operations
List of useful links :
http://www.cbec.gov.in/customs/cs-circulars/cs-circulars06/29-2006-cus.htm
http://www.cbec.gov.in/customs/cs-circulars/cs-circulars03/cs-circ-idx-2k3.htm
www.cbec.gov.in/customs/cs-sez-botm.htm - 30k
http://www.cbec.gov.in/customs/cs-circulars/cs-circulars02/52-2002- cus.htm
Section 10 (AA) of the ITA allows any SEZ unit which begins operations on or after April 1 2006 to make tax deductions equivalent to 100% of its income generated for a period of five consecutive assessment years from the time the SEZ unit commences operations, 50% for the next five assessment years, and tax deductions not exceeding 50% of the ploughed-back profits for the following five assessment years.
Section 80-IA of the Income Tax Act.
......... http://incometaxindia.gov.in/Notifications/Incometaxact/2002/N_No_S.asp
Exemption from minimum alternate tax under Section 115 JB of the Income Tax Act.
.......... http://incometaxindia.gov.in/circulars/2001/circular2001-13.asp
Exemption from dividend distribution tax under Section 115O of the Income Tax Act.
Exemption from Central Sales Tax (CST) on inter-state purchase of goods.
No CST if sale to SEZ - Sections 8(6), 8(7) and 8(8) have been incorporated to provide that inter state sale made to a unit in SEZ (Special Economic Zone) will be exempt from CST. The purchasing dealer has to submit a declaration in prescribed form. Consequential amendment is made by inserting section 13(1)(aa) to authorize Central Government to make rules to provide form and manner of furnishing declaration u/s 8(8). [CST Rule 12(10)(a) has have been subsequently amended on 16-1-2003. It is provided that SEZ unit will supply H form duly countersigned and certified by authority specified by Central Government authorizing establishment of unit in SEZ, - - Development Commissioner is the authority to allow setting up of SEZ unit]
http://dateyvs.com/cst01.htm
exemption from service tax under Chapter-V of the Finance Act, 1994 on taxable services provided to a Developer or Unit to carry on the authorized operations in a Special Economic Zone
Tax benefits to the SEZ Units :
The major incentives and facilities available to the SEZ Units include:
Duty free import / domestic procurement of goods for development, operation and maintenance of the SEZ Units.
100% Income Tax exemption for SEZ units under Section 10AA of the Income Tax act for the first 5 years, 50% for the next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.
Exemption from Minimum Alternate Tax under Section 115JB of the Income Tax Act. External Commercial Borrowing by SEZ units (within the permissible limits) in a year without any maturity restriction through recognized banking channels.
______http://incometaxindia.gov.in/circulars/2001/circular2001-13.asp
Exemption from the levy of taxes on the sale or purchase of goods other than newspapers under the Central Sales Tax Act, 1956 if such goods are meant to carry on the authorized operations by the Developer or entrepreneur
Exemption from Service Tax under Chapter-V of the Finance Act, 1994. http://www.eximkey.com/contents/showpage1.asp?pageid=8726
Operating units are exempt under Section 54GA of the ITA from paying capital gains taxes arising from the transfer of capital assets, including machinery, plants, buildings, land or any rights related to these which would result in the relocating of a unit from an urban area to an SEZ. No capital transfer tax is thus levied on any transfer of capital assets to or from SEZs.
Single Window Clearance for Central and State level approvals.
Exemption from State sales tax and other levies as extended by the respective State Governments.
Exemption from State Sales Tax and other levies as extended by the respective State Governments.
Exemption from any duty of customs, under the Customs Act, 1962 or the Custom Tariff Act, 1975 or any other law for the time being in force, on goods imported into, or service provided in, a Special Economic Zone or a Unit, to carry on the authorized operations by the Developer or entrepreneur.
Exemption from any duty of customs, under the Customs Act, 1962 or the Customs Tariff Act, 1975 or any other law for the time being in force, on goods exported from, or services provided, from a Special Economic Zone or from a Unit, to any place outside India.
Exemption from any duty of 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.
Exemption from the securities transaction tax leviable under section 98 of the Finance (No. 2) Act, 2004 in case the taxable securities transactions are entered into by a non-resident through the International Financial Services Centre.
Off shore banking unit & international service centre :
Pursuant to Section 80-LA of the ITA, the gross income of an offshore banking unit of a scheduled bank or a unit of an international financial service centre (IFSC) in an SEZ is allowed a 100% tax deduction from the gross income of the concerned unit for five consecutive assessment years. Thereafter, 50% of the gross income is allowed as a deduction for the next five consecutive years.
http://incometaxindia.gov.in/Notifications/Incometaxact/2003/29220031113.asp
Incentives and facilities available to SEZ investors :
Fiscal Benefits: Exemptions from the following duties, taxes or levies viz.
Income Tax