• Posted on: 24 February 2016
  • By: admin



Special Economic Zone (SEZ) is a specifically delineated duty free enclave for industries which manufacture and export goods and services .


 

These enclaves shall be deemed to be foreign territory for the purposes of trade operations, duties and tariffs.

a) Buyer procuring from SEZ unit pays in Foreign Exchange.

b) Sale of goods and services from SEZ to non SEZ area within Country amounts to Export and import for purchasing enitity.

c) Similarly, supply of inputs and services by NON SEZ enity to unit in SEZ qualifies as Export by non sez entity. 

 

Establishment of SEZ

Under section 3, a Special Economic Zone can be established either by Central Government, State Government or its agencies, private / public / joint sector or any person for manufacture of goods or rendering services or for both or as a free trade and warehousing zone. Even Foreign companies can also set up SEZs in India.

 

Procdure for establishment of SEZ

Minimum Area

Minimum area requirements for setting up a SEZ 
Multi Sector SEZ : 1000 hectares
Sector Specific SEZ : 100 hectares
FTWZ : 40 hectares
IT/ITES/handicrafts SEZ Bio-technology/
non-conventional energy/gems and jewellery Sector
: 10 hectares



How to Apply

 
Any individual, co-operative society, company or partnership firm can file an application for setting up of Special Economic Zone. The application is to be made in Form-A to the concerned State Government and the Board of Approval (BOA) in the Department of Commerce, Government of India. However the application would be considered by the BOA only when the State Government recommendation is received.


1- Application in Form A to the State Government indicating name and address of the applicant, status of the promoter along with a project report covering the following particulars and Location of the proposed Zone with details of existing infrastructure and that proposed to be established and other details.

Developer can also submit the proposal in Form A directly to the Board of Approval via Director(SEZ) or Deputy Secretary, Department of Commerce, Udyog Bhavan, New Delhi along with obtaining the concurrence of the State Government within 6 months from the date of such approval (Download Form A)

2- After approval, Department of Commerce issues Letter of Approval (LoA)

3- After receipt of the Letter of Approval (LoA) and on submmission of necessary documents relating to land, Department of Commerce, shall notify the area as an SEZ.

The applicant is required to submit details of the authorized operations proposed to be undertaken in the SEZ.

 

Co-developer

If the developer is developing SEZ with another person, the other person also has to file an application with Board of Approval to be considered as a Co-developer alongwith consent of the developer and MoU between Developer and Co-developer.


 


 

 

Facilities Incentive/ Facilities to SEZ Developer


 

1) 100% FDI allowed for : 
(a) Townships with residential, educational and recreational facilities on a case to case basis, 
(b) franchise for basic telephone service in SEZ.

2) Income Tax benefit (U/s 80IA) to developers for any block of 10 years in 15 years.

3) Duty free import/domestic procurement of goods for development, operation and maintenance of SEZs.

4) Exemption from Service Tax /CST.

5) Exempt from Income Tax- Income of infrastructure capital fund from investment in SEZ

6) Exepmption from Income Tax on Investment made in SEZ ( S.88)

7) Infrastructure facility for operation and maintenance can be transferred.

8) Generation, transmission and distribution of power in SEZs allowed

9) No restriction for allocation of space to approved SEZ units on commercial basis.

10) Service of water, electricity, security, restaurants and recreation centers on commercial lines.


 

Setting up a unit in SEZ

 


 

Both Manufacturing and Service units can be set up in SEZ.

3 copies of project proposal in the format prescribed to be submitted to the Development Commissioner of the SEZ.

 

Approvals

All approvals are given by Unit Approval Committee headed by the Development Commissioner and Letter of Intent is issued.

 

Incentives available for SEZ units

  

All Sale from SEZ amounts to export and eligible for Income Tax benefits under Section 80 HHC.

 

In addition following benefits are allowed.


1) Customs and Excise:

i)   Import or procure from domestic areas, capital goods, raw materials, consumables, spares, packing materials, office equipments without any duty. (Utilisation within 5 years)

(On sale of finished goods by SEZ units to domestic units, Custom duty is applicable)

 

2) Income tax

a) 100% exemption from Income Tax (Sec 10A) for first 5 years and 50% for 2 years thereafter.

b) Reinvestment allowance to the extend of 50% of ploughed back profits

c) Carry forward of losses is allowed.

 

3) Foreign Direct Investment

100% foreign direct investment under the automatic route is allowed in manufacturing sector in SEZ units except restricted items*. 100% FDI allowed for SSI Reseved Items.

(*arms and ammunition, explosive, atomic substance, narcotics and hazardous chemicals, distillation and brewing of alcoholic drinks and cigarettes , cigars and tobacco substitutes)

 

4) International Finance

a) SEZ can set up Off-shore Banking Unit with 100% Income Tax exemption on profit for 3 years and 50 % for next two years.

b) External commercial Borrowings (ECB) by units up to $ 500 million per annum without any maturity restrictions.

c) Entire export proceeds in EEFC account and also  overseas investment can be made.

d) Commodity hedging permitted.

e) Exemption from interest rate surcharge on import finance.

f) SEZ units allowed to 'write-off' unrealised export bills.

 

5) Central Sales Tax Act

Exemption to sales made from Domestic Tariff Area to SEZ units. Income Tax Act.

 

6) Service Tax

Exemption from Service Tax to SEZ units

 

7) Environment

Exemption from public hearing under Environment Impact Assessment Notification

8) Companies Act

Managerial Remuneration.

9) Drugs and Cosmetics

     Exemption from port restriction under Drugs & Cosmetics Rules

 

10) Sub-Contracting/Contract Farming

SEZ units are aloowerd sub-contract part of production or production process units in Domestic area or EOU and also aborad.

Agriculture/Horticulture processing SEZ units can indulge farmers in DTA for Contract Farming.

11) Labour laws in SEZs

Simplification of the procedures/returns though Single Window Clearance with powers to Development Commissioners- SEZ.

12) No License is required for imports, including second hand machineries

 

 

Benefits for Domestic suppliers to Special Economic Zone

Supply to SEZ is treated as Deemed Export and following bnenefits are allowed:

a) Drawback/DEPB

b) CST Exemption

c) Exemption from Octroi etc.

d) Income Tax benefits for physical export (Section 80 HHC).


            List of Operational SEZs in India |  List of Notified SEZs in India 


 Operational SEZ in Maharashtra

              

Government SEZ

SEEPZ Special Economic Zone

 

Development Commissioner,
SEEPZ, Andheri (East)Mumbai-400096 
Tel: 91-22-28290856, 28291388, 28290046, 28292147, 28292144 
Fax: 91-22-28291385, 22829175 
E-mail: dc@seepz.com
Website: www.seepz.com


Private SEZ


Maharashtra Industrial Development Corporation Limited

Rajiv Gandhi Infotech Park, Hinjawadi, Phase-III, District Pune, Maharashtra

IT/ITES

Syntel International Private Limited

Talwade Software Park, District Pune, Maharashtra

IT/ITES

Serum Bio-pharma Park

Pune, Maharashtra

Pharmaceuticals & Biotechnology

Maharashtra Industrial Development Corporation

Village Krushnoor, Taluka Naigaon, District Nanded, Maharashtra

Pharmaceuticals

Maharashtra Industrial Development Corporation

Shendre Industrial Area, District Aurangabad, Maharashtra

Engineering & Electronics

Wokhardt Infrastructure Development Limited

Wokhardt Infrastructure Development Limited

Pharmaceutical

Hiranandani Builders

Village Powai, District Mumbai, Maharashtra

IT/ITES

Zeus Infrastructure Private Limited

Village Mulund, Taluka Kurla, District Mumbai Suburban and Village Kopri, Taluka Thane, District Thane, Maharashtra

IT/ITES

Magarpatta Township Development and Construction Company Ltd.

Magarpatta City, Village Hadapsar, Taluka, Haveli, District Pune, Maharashtra

Electronics Hardware and Software including information technology enabled Services

EON Kharadi Infrastructure Private Limited

Taluka Haveli, District Pune, Maharashtra

IT/ITES

WIPRO Limited

Hinjawadi District, Pune,

IT/ITES

Infosys Technologies Limited

Rajiv Gandhi Infotech Park, Phase –II, village Mann, Tal. Mulshi, District Pune in the State of Maharashtra

IT/ITES

Flagship Infrastructure Private Limited

Village- Hinjawadi, TalukaMulshi, District- Pune, Maharashtra

IT

Serene Properties Pvt. Ltd

Kalwa Trans Thane Creek Industrial Area, MIDC, District Thane, Maharashtra

IT/ITES

Maharashtra Airport Development Company Limited

Nagpur (MIHAN), District Nagpur, Mahatashtra

Multi product

Wardha Power Company Pvt. Ltd.

Plot No. B-2, MIDC, Warora Growth Centre, Warora, District- Chandrapur, Maharashtra

Power Sector

The Manjiri Stud Farm Private Limited

Village Phursungi, Taluka Haveli, Pune, Maharashtra

IT/ITES

Quadron Business Parks Pvt. Ltd (Formerly Quadron Business Parks Ltd.)(Formerly DLF Akruti Inffopark (Pune) Limited)

Plot No. 28, MIDC, Rajiv Gandhi Infotech Park, Hinjewadi, Phase-II, DistrictPune, Maharashtra

IT/ITES

Pune Embassy India Pvt. Ltd.(formerly Dynasty Developers Pvt. Ltd.)

Plot No. 3, Rajiv Gandhi Infotech Park, Hinjewadi,PhaseII, Village Marunji, Taluka Muslhi, District Pune, Maharashtra

IT/ITES

Maharashtra Industrial Development Corporation

Kesurde village, Satara District, Maharashtra

Engineering

Khed Economic Infrastructure Limited (Bharat Forge Limited)

Khed Taluka Pune District, Maharashtra

Engineering & Electronics

Maharashtra Industrial Development Corporation

MIDC, Phaltan, District Satara, Maharashtra

Engineering

Arshiya International Limited

Village Sai, Taluka Panvel, District Raigad, Maharashtra

FTWZ

Gigaplex Estate Private Limited

Gigaplex, Plot No. 5, MIDC Knowledge Park, Airoli, Navi Mumbai, Maharashtra

IT/ITES


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