Special  Economic Zones                                                           Back To Home
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Special Economic Zones (SEZs) in India defined as :

“Specifically delineated duty-free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs”

Special Economic Zones (SEZs) is a Industrial Park or Cluster of Industries for Multi Products or Single Product Sector Having Special Privileges’ From Government in term of Various Incentives and Advantages

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   SEZ – Fiscal Advantages

* 100% FDI for manufacturing units operating inside SEZs through automatic approval route in almost all sectors

* 100% exemption of income tax for the first 5 years and a 50% exemption for the subsequent 2 years from the date of    commencement of operations.

* Up to 50% of the Profits ploughed back for next 3 years under S.10-A of Income Tax Act

* 100% profit repatriation facility from export earnings.

* Permission to sell within the Domestic Tariff Area (DTA) and an exemption from a Special Additional Duty (SAD) subject to the   company having a positive Net Foreign Exchange Position (NFEP).

* Supplies from DTA to be treated as exports while those from SEZs to DTA to be treated as imports.

* Investments in SEZ treated as infrastructure development and eligible for exemption.

* Local inputs at reduced cost without the excise, VAT other levies of India.

* Duty free import of materials for construction, capital goods and goods required for O&M.

* Reimbursement of Central Sales Tax paid on domestic purchases.

* Exemption from Central Excise duty on procurement of capital goods, raw materials, consumables, spares, etc. from the domestic   market.

* Exemption from customs duty on import of capital goods, raw materials, consumables & spares.


   SEZ facilities & potential opportunities.

* To enable creation of a world-class environment, SEZs will prospectively include the following facilities:

* Business – Industrial Land on lease, ready built sheds, commercial offices and buildings

* Living – Residential and social areas

* Learning – Schools, Colleges, Institutions and Centers of Excellence

* Healthcare – Specialized and primary healthcare facilities

* Recreation – Theme Parks, Restaurants, Hotels, Golf Courses


   ELECTRONIC HARDWARE TECHNOLOGY PARK AND SOFTWARE TECHNOLOGY PARK SCHEMES

   In order to provide impetus to the electronics industry, to enhance its export potential and to develop an efficient electronic    component industry, Electronic Hardware Technology Park (EHTP) and Software Technology Park (STP) schemes offer a package of    incentives and facilities like duty free imports on the lines of the EOU Scheme, deemed exports benefits and tax holidays.

   Export Oriented Units in India (EOU's)

• EOU program is similar to SEZ program

• But there is no need to be physically located in a SEZ; EOU can be established anywhere in India

• All other incentives are same as provided to SEZ units

• Up to 100% FDI is allowed


Our Services :

*  We identify and provide land that legally meet with the laws of SEZs and verify the title of land.

* Prepare draft plan in coordination with approved architect, engineers and other professionals, and make project report as per    plan. Project report needs market feasibility report and market survey from independent third party consultant. 

* Provide all legal services in forming, getting approval and establishment of SEZs.

* Appoint and manage professionals and technical staff to develop infrastructure and take care all work should be done under the *    provisions of SEZ Act.

  Type of SEZ/ Multi Products/ Single Product

Free trading & warehousing zones
Sez for multi-product2(za) of sez rules, 2006
Sez for sector specific 2(zb) of sez rules, 2006
Sez in a port or airport 2(zc) of sez rules,2006


Free trading and warehousing is a special category sez with a focus on trading and warehousing. The objective of such zone is to create trade related infrastructure to facilitate import and export and import of goods and services with freedom to carry out trade transactions in free currency.

In a stand alone Free Trading and Warehousing Zone at least 50% of the area shall be earmarked for developing processing area , free trading and warehousing may also be set up as a part of SEZ for multi product [notification no G.S.R 470(E) dated 10-08-2006]

Special Economic Zone for multi-product” means a Special Economic Zone. where Units may be set up for manufacture of two or more goods in a sector or goods falling in two or more sectors or for trading and warehousing or rendering of two or more services in a sector or rendering of services falling in two or more Sector.


Special Economic Zone for specific sector” means a Special Economic Zone meant exclusively for one or more products in a sector or one or more services in a sector.


“Special Economic Zone in a port or airport” means a Special Economic Zone in an existing port or airport for Special Economic Zone in an existing port or airport for Special Economic Zone.


Activity in SEZ

Manufacturing / Trading Service

  • Apparel, Garments & Leather
  • Automobile and Auto Components
  • Engineering - Light, Heavy & Application
  • Pharmaceuticals
  • Food Processing
  • Telecom Equipment
  • Computer Hardware & micro- electronics
  • Consumer Electronics & Appliances
  • Gems, Jewellery & Diamonds
  • Wood, Rubber, Plastic &
  • Leather Products
  • Handicrafts

  • IT enable services Biotechnology
  • R & D Services
  • Health Care
  • Financial Services
  • Knowledge (Education) Services
  • Entertainment, Leisure & Recreation
  • Sports & Related Activities
  • Organized Retail
  • Business Services (Convention / Exhibition)
  • Warehousing & Trade Related Services

Minimum area requirement stipulated for various categories of SEZs are :

Type

For states other than special category states/UTs

Areas for special category states /UTs

Minimum total area requirement

Processing area requirement

Minimum total area requirement

Processing area requirement

Multi-product

1000 Hectares

35%

200 hectares

35%

One/more services

100 hectares

50%

100 hectares

35%

Sector specific/port/airport

100 hectares

50%

50 hectares

50%

Electronic hardware & software or information technology enabled services

10 hectares with minimum built up area of one lakh sq.metre

50%

10 hectares with minimum built up area of 1 lakh sq.mt

50%

Gems &jewellery

10 hectares with minimum built up area of 50 thousand sq.metre

50%

10 hectares with minimum built up area of 50 thousand sq.metre

50%

Bio-tech/non-conventional energy including solar energy equipments/cells

10 hectares(and minimum built up area of 1 lakh sq.mts for IT)

50%

10 hectares(and minimum built up area of 1 lakh sq.mts for IT)

50%

Free trade warehousing zone

40 hectares(min. built up area of 1 lakh sq.metres)

50%

40 hectares(min. built up area of 1 lakh sq.metres)

50%


Note
  • 1 hectare = 2.421 acres = 10,000 sq.metres
  • 1000 hectares = 2500 acres
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Fiscal Incentives

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

50% of the eligible profits or gains subject to creation or specified reserve

Income Tax Holiday (Developer)

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

Capital Gain

Exemption from capital gains or transfer or specified assets in Consequence to shifting of industrial undertaking from urban or other areas to SEZ subject to certain conditions.

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 transactions 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


Facilities in SEZ

Sr No

List of authorized activities

IT/ITES, Bio-technology & gems & jewellery

Sector Specific

Multi- product

1

Roads with street lights, signal & signage

2

Water treatment plant, water supply lines, sewage lines

3

Sewage garbage disposal plant, pipeline

4

Electrical gas & PNG Distribution network including sub-station for appropriate capacity, pipeline network etc

5

Security office, police post etc at entry and exit & at other points

6

Effluent treatment plant and pipelines & other infrastructure for effluent treatment

7

Office space

8

Parking including Multi-level car parking (automated/manual)

9

Telecom and other communication facilities including internet connectivity

10

Rain water Harvesting plant

11

Power(including power back-up facility)

12

Air-Conditioning

13

Swimming pool

14

Fire-protection system with sprinkles, fire and smoke detectors

15

Recreational Facility including club house, Indoor/Outdoor games, gymnasium.

16

Employees welfare facilities like ATMs, Crèche, Medical centre & other such Facilities

17

Shopping area, retail space

18

Business/convention centre

19

Common data centre with inter-connectivity

20

Housing/service apartments

21

Play ground

22

Bus-bay

23

Food services including cafeteria , food courts,restaurants,coffee shops, canteens and catering facilities

24

Land scaping & water bodies

25

Clinic & medical centers

26

Wi Fi/ Wi Max Services

27

Drip and Micro Irrigation Systems

28

Any other operation ancillary or incidental to operations specified above which the Board of approval may authorize from time to time.

29

School/technical/educational Institutions

x

30

Rail Head

x

31

Access control and Monitoring Systems

x

32

Rail Head within the SEZ

x

x

33

Port

x

x

34

Airport/Air Cargo Complex

x

x

35

ICD

x

x

36

Banks

x

x


For more information to SEZs the official links of Ministry of Commerce and Industries (Government of India) are given below.


http://www.sezindia.nic.in

 

About SEZs

 

Develop SEZ

 

GOI Acts / Policies

 

SEZs in India

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