Incentives to SEZ Units
Tax exemptions and other Incentives to Special Economic Zones (SEZ) In India
- No licence required for import.
- Exemption from customs duty on import of capital goods, raw materials, consumables, spares etc.
- Exemption from Central Excise duty on procurement of capital goods, raw materials, consumable spares etc. from the domestic market.
- Supplies from DTA to SEZ units treated as deemed exports.
- Reimbursement of Central Sales Tax paid on domestic purchases.
- 100% income tax exemption for a block of five years, 50% tax exemptions for five years and upto 50% of the Profits ploughed back for next 5 years under section 10-A of Income tax Act.
- Supplies from DTA to SEZ to be treated as exports under 80HHC of the IT Act.
- Reimbursement of duty paid on furnace oil, procured from domestic oil companies to SEZ units as per the rate of Drawback notified by the Directorate General of Foreign Trade.
- 100% Foreign Direct Investment in manufacturing, sector allowed through automatic route.
- Profits allowed to be repatriated freely without any dividend balancing requirement.
- In house customs Clearance on fast Track Customs clearance based on "self - certification".
- SEZ units may be for manufacturing, trading or service activity.
- SEZ unit to be positive net foreign exchange earner within three years.
- Performance of the units to be monitored by a Committee headed by Development Commissioner and consisting of Customs.
- Facility to retain 100% foreign exchange receipts in EEFC Account.
- Facility to realize and repatriate export proceeds within 12 months.
- Re-export imported goods found defective, goods imported from foreign suppliers on loan basis etc. without G.R. Waiver under intimation to the Development Commissioner.
- Commodity hedging by SEZ units permitted.
- Capitilization of import payables.
- No cap on foreign investment.
- Domestic Sales on full duty subject to import policy in force.
- No fixed wastage norms.
- Full freedom for subcontracting including subcontracting abroad.
- Subcontracting facility available to jewellery units.
- Duty free goods to be utilized in 5 years.
- Job work on behalf of domestic exporters for direct export allowed.
- No routine examination by Customs of export and import cargo.
- No separate documentation required for customs and Exim Policy.
- Support services like banking, post office clearing agents etc. provided in Zone Complex.
- Developed plots and ready to use built up space available in SEZ.
- Exemption from Custom/Excise Duty on goods for setting up industries in the zone.
State-Government Incentives to SEZ Units
- Zero rating of Input VAT for purchases from Domestic Tariff Area (DTA).
- Exemption from Stamp duty.
- Exemption from Electricity Duty.
- Public Utility status.
- Capital subsidies and Other incentives depending on size of Investment and Employment under Tamil Nadu Industrial Policy 2007.
Tamil Nadu
India
