What is SEZ ?
The SEZ Act, 2005, was an important bill to be passed by the Government of India in order to instill confidence in investors and signal the Government's commitment to a stable SEZ policy regime and with a view to impart stability to the SEZ regime thereby generating greater economic activity and employment through their establishment, a comprehensive draft SEZ Bill prepared after extensive discussions with the stakeholders. The Special Economic Zones Act, 2005, was passed by Parliament in May, 2005 which received Presidential assent on the 23rd of June, 2005. The remaining part of India, not covered by the SEZ Rules, is known as the Domestic tariff area.

The objectives of SEZs can be clearly explained as the following: 
(a) generation of additional economic activity 
(b) promotion of exports of goods and services; 
(c) promotion of investment from domestic and foreign sources; 
(d) creation of employment opportunities; (e) development of infrastructure facilities.

The major incentives and facilities available to SEZ developers include:-
- Exemption from customs/excise duties for development of SEZs for authorized operations approved by the BOA.
- 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.
- Exemption from minimum alternate tax under Section 115 JB of the Income Tax Act.
- Exemption from dividend distribution tax under Section 115O of the Income Tax Act.
- Exemption from Central Sales Tax (CST).
- Exemption from Service Tax (Section 7, 26 and Second Schedule of the SEZ Act).

Learn all about duty-free & trade operations in Special Economic Zones. Call us know at +91-99021-91095


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