‘SPECIAL ECONOMIC ZONE’ BENEFITS

Tax and other incentives available to the prospective units to be set up in the SEZ:

INCOME TAX

Deduction from Profits and Gains from export of goods / services as follows (Section 10AA)
100 % income tax exemption for first 5 years
50 % income tax exemption for next 5 years
Income tax exemption for next 5 years to the extent of profits
Reinvested (Maximum 50 %)

Exemption from Dividend Distribution Tax

No MAT (Minimum Alternate Tax)

INDIRECT TAXES

No import duty on goods imported
No excise duty on goods procured from DTA (Domestic Tarrif Area)
No service tax on services availed from DTA (Domestic Tarrif Area)
No Value Added Tax (VAT) and Central Sales Tax (CST) on goods procured from DTA (Domestic Tarrif Area)
Service tax, VAT, Central Sales Tax exemptions on exports

Other Taxes, Levies & Duties:

Exemptions from State and local , duties and levies

Other Incentives / Concessions for SEZ Units

Single point clearance to the SEZ unit under various State Acts and Rules
External Commercial Borrowings (ECB) by units upto $ 500 million a year allowed without any maturity restrictions
Freedom to bring in export proceeds without any time limit
Flexibility to keep 100 % of export proceeds in EEFC account
SEZ units allowed towrite-off unrealized export bills
SEZ units may sub-contract part of production or production process through units in DTA / another SEZ / EOU units
SEZ units may sub-contract part of process abroad
Inter-unit sales permitted provided payment in Foreign Currency
Exemption from interest rate surcharge on import finance.
Enhanced limit of Rs. 2.4 crore per annum allowed for managerial remuneration
Exemption from requirement of domicile in India for 12 months prior to appointment as Director
Import or procurement from DTA permitted without any license
No cap on FDI for SSI reserved items