• No Excise Duty on goods procured from India

• No Custom Duty on import

• No Service Tax on services availed   

• No Value added Tax (VAT)                     

• No Central Sales Tax (CST)        

• No Purchase Tax                                   

• No Electricity Duty                              

• All export incentives pertaining to physical export

• No Stamp Duty & registration fees

   

• Exemption from Income Tax                  

  • 100% for the first 5 yrs                         

  • 50% for the next 5 yrs                           

  • 50% of the profits ploughed back for the next 5 yrs                                       

     

•  Transfer of ownership of SEZ units (including sale) permitted subject to fulfillment of prescribed conditions (Rule 74 A)

   

SEZ Operational Benefits

The operational ease of the SEZ Units include:

• Certification from single SEZ authority

• No routine examination for Imports, Exports

• 100% FDI through automatic approval

• Off-shore Banking Units (OBUs) for Finance

• Can import any items (except prohibited items)

• External commercial borrowing by units up to $ 500 Mn a year allowed without any maturity restrictions

• Freedom to bring in export proceeds without any time limits

• Exemption from requirement of being domicile in India for 12 months, prior to appointment as director

• Relaxed Labour laws

• SEZ units function on Self Certificate basis

• 100% DTA sale is allowed on payment of applicable duty subject to complying the NFE norm

• No cap on foreign investments on items reserved for SSI

• Reduction in the cost of infrastructure

• Reduction in the cost of raw materials

• Reduction in routine clearance formalities