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Overall Taxation Impact On Business Viz Sez

The document summarizes the major tax incentives and facilities available to businesses operating in Special Economic Zones (SEZs) in India. Units located in SEZs receive benefits like duty free imports, income tax exemptions for export income for 10 years, and exemptions from minimum alternate tax, central sales tax, and service tax. SEZ developers also receive incentives like income tax exemptions, exemption from minimum alternate tax, and exemptions from customs duties and central sales tax. The aim is to attract foreign investment and boost exports by making SEZs in India globally competitive.

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Shashank Varma
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41 views6 pages

Overall Taxation Impact On Business Viz Sez

The document summarizes the major tax incentives and facilities available to businesses operating in Special Economic Zones (SEZs) in India. Units located in SEZs receive benefits like duty free imports, income tax exemptions for export income for 10 years, and exemptions from minimum alternate tax, central sales tax, and service tax. SEZ developers also receive incentives like income tax exemptions, exemption from minimum alternate tax, and exemptions from customs duties and central sales tax. The aim is to attract foreign investment and boost exports by making SEZs in India globally competitive.

Uploaded by

Shashank Varma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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OVERALL

TAXATION
IMPACT ON
BUSINESS viz
SEZ.

The incentives and facilities offered to the units in


SEZs for attracting investments into the SEZs,
including foreign investment include:1.

Duty free import/domestic procurement of goods for development,


operation and maintenance of SEZ units.

2.

100% Income Tax exemption on export income for SEZ units under
Section 10AA of the Income Tax Act for first 5 years, 50% for next 5
years thereafter and 50% of the ploughed back export profit for next 5
years.

3.

Exemption from minimum alternate tax under section 115JB of the


Income Tax Act.

4.

External commercial borrowing by SEZ units upto US $ 500 million in a


year without any maturity restriction through recognized banking
channels.

5.

Exemption from Central Sales Tax.

6.

Exemption from Service Tax.


Source : sezindia

The major incentives and facilities available to SEZ


developers include:1.

Exemption from customs/excise duties for development of SEZs for


authorized operations approved by the BOA.

2.

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.

3.

Exemption from minimum alternate tax under Section 115 JB of the


Income Tax Act.

4.

Exemption from dividend distribution tax under Section 115O of the


Income Tax Act.

5.

Exemption from Central Sales Tax (CST).

6.

Exemption from Service Tax (Section 7, 26 and Second Schedule of


the SEZ Act).

7.

100% VAT rebates on exported India sourced components.


Source : sezindia & India

FOR DEVELOPERS IN
SEZ

BENEFITS TO
EXPORTERS

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