The provisions of Minimum Alternate Tax (MAT) have been made applicable to Special Economic Zone (SEZ) Developers and Units with effect from 1st April, 2012. The SEZ sector has seen a sharp slowdown due to a number of reasons including withdrawal of exemption from MAT and Dividend Distribution Tax (DDT) provisions, uncertain fiscal regime for SEZs, global slowdown in exports etc.Online GST Certification Course by TaxGuru & MSME- Click here to Join
The number of applications for denotification of SEZs has shown a significant increase in the last two financial years and the trend is continuing in the current financial year also with 40 of the total 52 de-notifications of SEZs having been approved in Financial Years 2010-11, 2011-12 and 2012-13 (upto 23.11.2012). Similarly, the number of new SEZs set up in 2010-11, 2011-12 and 2012-13 (as on 23.11.2012) has been 16, 9 and 3 respectively.
This information was given by the Minister of State for Commerce & Industry Dr. D. Purandeswari in written reply to a question in Rajya Sabha today.