New SEZs to take of in May 07
19 new proposals for SEZs are likely to get formal clearance in the meeting next month. These include Reliance, Suzlon which are in position of land. Projects in possession of land will be given priority.
Incentives & facilities offered for SEZs
Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units.
100% Income-Tax exemption on export income for SEZ units for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.
Exemption from minimum alternate tax
ECB upto $500 million in a year without any maturity restriction through recognized banking channels.
Exemption from CST
Exemption from service Tax
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 for Developers
Customs/excise duties for development of SEZs for authorized operations approved by BoA.
No income-tax on export income for a block of 10 years in 15 years.
Don’t attract MAT, dividend distribution tax, CST & service tax
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