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International Trade Procedures and Documentation

Notes

Note The other important institutional agency that facilitates the working and functioning
of SEZ are township authority, which may be appointed by the state government to look
after the local and command area development and ensure that township may have full-
fledged facilities and services as prescribed under the rules.
SEZ Authority monitors the overall performance of SEZ vis-à-vis export performance and
infrastructural improvement in the area. The developer is the lead person or company who has
the responsibility for development of the SEZ. Sometimes, there can also be a co-developer as
the size of SEZ may be very big or the developer may want to include a co-developer so as to use
his specialised knowledge in development of SEZ or to meet the financing requirement.

13.3.2 Incentives and Facilities to the SEZs

The following benefits/incentive are available to SEZ developers and SEZ units in Special
Economic Zones and are categorized as under:
1. Incentives and Facilities available to SEZ Developers:
(a) Exemption from customs/excise duties for development of SEZs for authorized
operations approved by the BOA.
(b) Income tax exemption on income derived from the business of development of the
SEZ in a block of 10 years in 15 years under Section 80-IAB of the Income Tax Act.

(c) Exemption from minimum alternate tax under Section 115 JB of the Income Tax Act.
(d) Exemption from dividend distribution tax under Section 115 O of the Income Tax
Act.

(e) Exemption from Central Sales Tax (CST).
(f) Exemption from Service Tax (Section 7, 26 and Second Schedule of the SEZ Act).

Table 13.8 Fiscal Incentives/Benefits to Developer and Units in Special Economic Zones

Contd...

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