Page 148 - DCOM508_CORPORATE_TAX_PLANNING

Unit 6: Tax Planning: FTZ, SEZ and 100 % EOUs

Notes

Did u know? Need for Special License
To set up an EOU for the following sectors, an EOU owner needs a special license.
1. Arms and ammunition,

2. Explosives and allied items of defence equipment,
3. Defence aircraft and warships,

4. Atomic substances,
5. Narcotics and psychotropic substances and hazardous chemicals,
6. Distillation and brewing of alcoholic drinks,

7. Cigarettes/cigars and manufactured tobacco substitutes.
In the above mention cases, EOU owner are required to submit the application form to
the Development Commissioner who will then put them up to the Board of Approvals
(BOA).
Major Sectors in EOUs:
1. Granite

2. Textiles/garments
3. Food processing

4. Chemicals
5. Computer software
6. Coffee
7. Pharmaceuticals

8. Gem & jewellery
9. Engineering goods

10. Electrical & electronics
11. Aqua & pearl culture
Categories of 100% EOUs: The 100% EOUs fall into three categories:
(a) EOUs established anywhere in India and exporting 100% products except certain fi xed
percentage of sales in the Domestic Tariff Area (DTA) as may be permissible under the
Policy.
(b) Units in Free Trade Zones in Special Economic Zones (SEZs) and exporting 100% of their
products.

(c) EOUs set up in Software Technology Parks (STPs) and Electronic Hardware Technology
Parks (EHTPs) of India for development of Software & Electronic Hardware.

6.3.1 Conditions to be Fulfi lled

A 100 per cent export-oriented unit is an industrial unit offering for export its entire production,
excluding the permitted levels of domestic tariff area sales. EOUs may be set up with a foreign

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