SEZ

GST refund on supplies made to SEZ unit/developer (with tax payment)

Goods and Services Tax - How can I file for refund on account of supplies made to SEZ unit / SEZ developer (with payment of tax)? Filing for refunds is a post-login functionality, which means that the Taxpayer must login to the GST Portal with their valid login credentials before filing a refund application....

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GST Refund for Supplies made to SEZ Unit/Developer (Without Tax Payment)

Goods and Services Tax - A. FAQs on Refund on Account of Supplies made to SEZ Unit/ SEZ Developer (Without Payment of Tax) Q.1 How can I get my refund of ITC on account of supplies made to SEZ Unit/ SEZ Developer (Without Payment of Tax)? Ans: You may comply with the activities as specified below: 1. You have to […]...

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Software Technology Parks of India (STPI) Unit

Goods and Services Tax - Software Technology Parks of India (STPI) is a society established in 1991 by the Indian Ministry of Electronics and Information Technology with the objective of encouraging, promoting, and boosting the export of software from India. It has two units i.e. Non – STP Unit and STP Unit....

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Supply to SEZ Unit under GST-Detailed Analysis

Goods and Services Tax - A Special Economic Zones ( SEZs ) are established worldwide by each and every country. SEZs are located within a country’s national borders. There is 240 operational SEZs as on 31-12-2019 in India. The Government aims to establish SEZs are growth in trade, increased investments, job creations and attract FDI etc.. To encourage entrepren...

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SEZs – Relaxations During Pandemic

Goods and Services Tax - On account of the Pandemic outburst of COVID-19, the Central Government declared a complete lockdown from 25th March, 2020 onwards in various phases. In subsequent lockdown, the Ministry of Home Affairs vide Guidelines dated 15th April, 2020, issued relaxations for Special Economic Zones (SEZs) wherein the Government from 20th April, 2020...

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Impact of Corona on Sezs

Goods and Services Tax - Along with IT/ITES Units, Non IT/ITES Units in SEZs have also been allowed to take desktop/laptop outside SEZs to work from home. This has enabled exports especially in IT/ITES sector to register a positive growth despite lockdown....

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Compliances to be met by units / developers / co‐developers of SEZs relaxed

Goods and Services Tax - Department of Commerce decided to provide relaxations on compliances to be met by units / developers / co‐developers of Special Economic Zones (SEZs). Such compliances to which the relaxations will apply ...

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Cabinet approves Special Economic Zones (Amendment) Bill, 2019 

Goods and Services Tax - The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved to introduce a Bill, namely, the Special Economic Zones (Amendment) Bill, 2019 that is the Bill to replace the Special Economic Zones (Amendment) Ordinance, 2019 (12 of 2019).  The Bill will be introduced in ensuing session of the Parliament....

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Advisory for Taxpayers to file Refund for Multiple Tax period

Goods and Services Tax - 1. Refund application filing for multiple tax period is available for below grounds of refund:a. Export of Goods & Services-Without payment of Taxb. Supplies made to SEZUnit/SEZDeveloper-Without payment of Tax2. Refund application can be filed using refund application Form GST-RFD-01A & selecting a particular tax period 3. The multiple ta...

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SEZ Rules to be aligned with GST laws by July end

Goods and Services Tax - Centre will come out with amendments to Special Economic Zones (SEZ) Rules, 2006 synchronised with Goods and Services Tax (GST) laws by end of this month, a top official in the Union Ministry of Commerce and Industry said at an ASSOCHAM event held in New Delhi today....

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Entry Tax: After Granting Exemption same can’t be rejected for Technicalities

SRF Ltd. Vs State of Madhya Pradesh And Others (Madhya Pradesh High Court) - The issue under consideration is whether the petitioner is eligible for exemption from payment of entry tax based on certificates granted under Madhya Pradesh Udyog Nivesh Samvardhan Sahayta Yojna?...

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CESTAT Allowed Refund alongwith Interest against Service Tax Paid for Services Received in SEZ

Cummins Technologies India Pvt. Ltd. Vs. Commissioner (CESTAT Delhi) - The issue under consideration is regarding rejection of refund claimed by the appellant being service tax paid for the services received in the SEZ....

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Claim of Input Tax Credit (ITC) Refund by Special Economic Zone (SEZ)

Britannia Industries Limited Vs. Union of India (Gujarat High Court) - Britannia Industries Limited Vs. Union of India (Gujarat High Court) 1. It is held by Honourable Gujrat High Court in Britania Industries Limited case that the SEZ unit can claim a refund of ITC distributed by Input Service Distributor (ISD). 2. Brief Facts of the Case: M/S Britania Industries, a li...

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SEZ Units Entitled to Claim Refund of Unutilized IGST Credits

Britannia Industries Limited Vs Union of India (Gujarat High Court) - High Court observed that as per the definition of ISD under Section 2(61) of CGST Act and facts of the present case, it is not possible for a supplier of goods and services to file a refund application to claim refund of input tax credit distributed by ISD....

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Section 10AA Deduction eligible on Manufacturing Activity as per SEZ Act

CIT Vs M/s. Vetrivel Minerals (Madras High Court) - whether the tribunal is correct in holding that the assessee is carrying on manufacturing activity as per SEZ Act, 2005 and hence eligible for deduction U/s.10AA?...

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Last date of filing QPRs/APRs by SEZ units/EOUs/Developers extended

No. K-43022/7/2020-SEZ - (22/09/2020) - I am directed to refer to this Department's letter of even number dated 30.03.2020 (Copy enclosed) on the subject cited above and to state that keeping in view of hardship due to COVID-19, this Department has further decided to extend the time period for filing APRs/QPRs by SEZ Units/Developers/EOUs...

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Govt notifies inclusion of new members in CSEZ Authority

Notification No. S.O. 3625(E) - (17/09/2020) - Central Government, in exercise of the powers conferred by sub-section (1) read with sub-section (5) of Section 31 of the Special Economic Zones Act, 2005 (28 of 2005), hereby makes the following amendment in the notification of the Ministry of Commerce and Industry, Department of Commerce, dated 28...

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Important issues of SEZs / EOUs during COVID-19 lockdown

No. K-43022/7/2020-SEZ (3145523) - (29/04/2020) - Important operational issues pertaining to Special Economic Zones (SEZs) / Export Oriented Units (EOUs) during the prevailing lockdown for COVID-19 -reg....

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Special Economic Zones (4th Amendment) Rules, 2019

Notification No. G.S.R. 12(E) - (31/12/2019) - ‘53A. Exemption.- Nothing contained in rule 53 shall apply,-a. to a Unit in an International Financial Service Centre set up as Alternate Investment Fund or Mutual Fund to the extent of any inflow of investible funds from investors, any investments made from such investible funds and returns on th...

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Delegation of powers for shifting of SEZ Unit from one SEZ to another within same Zone – reg

Instruction No. 101 - (01/11/2019) - I am directed to refer to the subject cited above and to convey herewith the approval of the Competent authority for delegation of powers to jurisdictional Development  Commissioners  for authorising the  proposals of shifting/relocation/transfer of SEZ Units from one SEZ to another SEZ within t...

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Recent Posts in "SEZ"

Entry Tax: After Granting Exemption same can’t be rejected for Technicalities

SRF Ltd. Vs State of Madhya Pradesh And Others (Madhya Pradesh High Court)

The issue under consideration is whether the petitioner is eligible for exemption from payment of entry tax based on certificates granted under Madhya Pradesh Udyog Nivesh Samvardhan Sahayta Yojna?...

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GST refund on supplies made to SEZ unit/developer (with tax payment)

How can I file for refund on account of supplies made to SEZ unit / SEZ developer (with payment of tax)? Filing for refunds is a post-login functionality, which means that the Taxpayer must login to the GST Portal with their valid login credentials before filing a refund application....

Read More

GST Refund for Supplies made to SEZ Unit/Developer (Without Tax Payment)

A. FAQs on Refund on Account of Supplies made to SEZ Unit/ SEZ Developer (Without Payment of Tax) Q.1 How can I get my refund of ITC on account of supplies made to SEZ Unit/ SEZ Developer (Without Payment of Tax)? Ans: You may comply with the activities as specified below: 1. You have to […]...

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CESTAT Allowed Refund alongwith Interest against Service Tax Paid for Services Received in SEZ

Cummins Technologies India Pvt. Ltd. Vs. Commissioner (CESTAT Delhi)

The issue under consideration is regarding rejection of refund claimed by the appellant being service tax paid for the services received in the SEZ....

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Last date of filing QPRs/APRs by SEZ units/EOUs/Developers extended

No. K-43022/7/2020-SEZ (22/09/2020)

I am directed to refer to this Department's letter of even number dated 30.03.2020 (Copy enclosed) on the subject cited above and to state that keeping in view of hardship due to COVID-19, this Department has further decided to extend the time period for filing APRs/QPRs by SEZ Units/Developers/EOUs upto 31st December, 2020....

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Govt notifies inclusion of new members in CSEZ Authority

Notification No. S.O. 3625(E) (17/09/2020)

Central Government, in exercise of the powers conferred by sub-section (1) read with sub-section (5) of Section 31 of the Special Economic Zones Act, 2005 (28 of 2005), hereby makes the following amendment in the notification of the Ministry of Commerce and Industry, Department of Commerce, dated 28th May, 2018, for inclusion of new membe...

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Impact of Corona on Sezs

Along with IT/ITES Units, Non IT/ITES Units in SEZs have also been allowed to take desktop/laptop outside SEZs to work from home. This has enabled exports especially in IT/ITES sector to register a positive growth despite lockdown....

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Claim of Input Tax Credit (ITC) Refund by Special Economic Zone (SEZ)

Britannia Industries Limited Vs. Union of India (Gujarat High Court)

Britannia Industries Limited Vs. Union of India (Gujarat High Court) 1. It is held by Honourable Gujrat High Court in Britania Industries Limited case that the SEZ unit can claim a refund of ITC distributed by Input Service Distributor (ISD). 2. Brief Facts of the Case: M/S Britania Industries, a limited Company filed the petition [&helli...

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SEZ Units Entitled to Claim Refund of Unutilized IGST Credits

Britannia Industries Limited Vs Union of India (Gujarat High Court)

High Court observed that as per the definition of ISD under Section 2(61) of CGST Act and facts of the present case, it is not possible for a supplier of goods and services to file a refund application to claim refund of input tax credit distributed by ISD....

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Section 10AA Deduction eligible on Manufacturing Activity as per SEZ Act

CIT Vs M/s. Vetrivel Minerals (Madras High Court)

whether the tribunal is correct in holding that the assessee is carrying on manufacturing activity as per SEZ Act, 2005 and hence eligible for deduction U/s.10AA?...

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Income from Letting out Property in Industrial park/SEZ including amenities Taxable as Business Income

CIT Vs Tidel Park Limited (Madras High Court)

Whether the income derived from letting out of the property in an industrial park/SEZ including the amenities would be business income in the hands of the owner of the property?...

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Import of diamonds for re-export qualify for section 10AA deduction

Solitaire Diamond Exports Vs ITO (ITAT Mumbai)

The issue under consideration is whether the AO is correct in disallowance of the deduction claim u/s 10AA by stating that the import of diamonds for re-export is not eligible for such deduction?...

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Cenvat Credit of ITC attributable to taxable output & use of Formula

Dell International Services India Pvt. Ltd. Vs C.C.E. & S.T. (CESTAT Bangalore)

The issue under consideration is whether ITC attributable to taxable output included in formula of determining ITC of exempted goods or services?...

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Expenses cannot be excluded from Export Turnover u/s 10AA merely because it is in Foreign Currency

Renault Nissan Technology & Business Centre India Private Limited Vs CIT (Madras High Court)

The issue under consideration is whether the foreign currency expenditure need to be excluded from the ‘export turnover’ of the assessee for the purpose of computing deduction under Section 10AA of the Act?...

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Software Technology Parks of India (STPI) Unit

Software Technology Parks of India (STPI) is a society established in 1991 by the Indian Ministry of Electronics and Information Technology with the objective of encouraging, promoting, and boosting the export of software from India. It has two units i.e. Non – STP Unit and STP Unit....

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Supply to SEZ Unit under GST-Detailed Analysis

A Special Economic Zones ( SEZs ) are established worldwide by each and every country. SEZs are located within a country’s national borders. There is 240 operational SEZs as on 31-12-2019 in India. The Government aims to establish SEZs are growth in trade, increased investments, job creations and attract FDI etc.. To encourage entrepren...

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SEZs – Relaxations During Pandemic

On account of the Pandemic outburst of COVID-19, the Central Government declared a complete lockdown from 25th March, 2020 onwards in various phases. In subsequent lockdown, the Ministry of Home Affairs vide Guidelines dated 15th April, 2020, issued relaxations for Special Economic Zones (SEZs) wherein the Government from 20th April, 2020...

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Section 14A applies to share of profit from partnership firm

Minal Industries Limited Vs DCIT (ITAT Mumbai)

The issue under consideration is whether Section 14A will be applicable on Profit sharing from Partnership Firm, which is exempt in the hands of partners?...

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Sunset date for claiming Income Tax exemption for SEZs – Extension Needed

Sunset date for claiming Income Tax exemption for SEZs – Time to further extend the sunset date mentioned under Section 10AA of the Income Tax Act, 1961 considering difficulties faced by SEZ Units to commence the production due to restriction placed for controlling pandemic Covid-19. Article explains Sunset date for claiming Income ...

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Section 80IAB deduction allowed against rental income from SEZ development

Cessna Garden Developers Pvt. Ltd. Vs ACIT (ITAT Bangalore)

The issue under consideration is whether deduction under section 80IAB will be allowed against the income of lease/ rental income from development of SEZ irrespective of wrong classification of head of income....

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Important issues of SEZs / EOUs during COVID-19 lockdown

No. K-43022/7/2020-SEZ (3145523) (29/04/2020)

Important operational issues pertaining to Special Economic Zones (SEZs) / Export Oriented Units (EOUs) during the prevailing lockdown for COVID-19 -reg....

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Supply To SEZ Under GST Regime

By following the above principle of destination based taxation exports continue to remain zero rated and a similar benefit continues to be given to Special Economic Zones (SEZs) under GST law. While this benefit is extended to processing zones of the SEZs, sales from SEZ to Domestic Tariff Area (DTA) continue to remain taxed under GST sys...

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Special Economic Zone (SEZ) Under GST

Introduction :- Special Economic Zone (SEZ) is a specifically established duty free enclave, which shall be deemed to be a foreign territory for the purposes of trade operations and duties and tariffs. SEZs are located within a country’s national borders, and their aims include increased trade balance, employment, increased investme...

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Compliances to be met by units / developers / co‐developers of SEZs relaxed

Department of Commerce decided to provide relaxations on compliances to be met by units / developers / co‐developers of Special Economic Zones (SEZs). Such compliances to which the relaxations will apply ...

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Fable of tumbling Indian SEZ

This explains the whole anatomy of the declining interests of exporters in investing in Special Economic Zone (SEZ).  Let's have a glimpse on the current situation of SEZ....

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Special Economic Zones (4th Amendment) Rules, 2019

Notification No. G.S.R. 12(E) (31/12/2019)

‘53A. Exemption.- Nothing contained in rule 53 shall apply,-a. to a Unit in an International Financial Service Centre set up as Alternate Investment Fund or Mutual Fund to the extent of any inflow of investible funds from investors, any investments made from such investible funds and returns on them inclusive of principal return and any...

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Delegation of powers for shifting of SEZ Unit from one SEZ to another within same Zone – reg

Instruction No. 101 (01/11/2019)

I am directed to refer to the subject cited above and to convey herewith the approval of the Competent authority for delegation of powers to jurisdictional Development  Commissioners  for authorising the  proposals of shifting/relocation/transfer of SEZ Units from one SEZ to another SEZ within the same Zone....

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Single letter of approval (LoA) for all categories under Chapter 71 of ITC HS

Instruction No. 100 (25/10/2019)

I am directed to state that representations had been received in this Department for single LoA for all categories under Chapter 71 of ITC HS. The representations have been examined and following decisions have been taken, with the approval of competent authority, regarding issuance of LoA to a Gems & Jewellery (G&J) unit:...

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Special Economic Zones (Amendment) Act, 2019

Notification No. 8 of 2019 (08/07/2019)

(1) This Act may be called the Special Economic Zones (Amendment) Act, 2019. (2) It shall be deemed to have come into force on the 2nd day of March, 2019....

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Cabinet approves Special Economic Zones (Amendment) Bill, 2019 

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved to introduce a Bill, namely, the Special Economic Zones (Amendment) Bill, 2019 that is the Bill to replace the Special Economic Zones (Amendment) Ordinance, 2019 (12 of 2019).  The Bill will be introduced in ensuing session of the Parliament....

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SEZ: Management &Business Consultant services is authorized service

Instruction No. 94 (08/05/2019)

The representations from stakeholders have been received in this Department for inclusion of Management and Business Consultant Services in the list of default authorized services. The matter was deliberated upon by the Board of Approval in its 85th meeting held and it was decided that Management and Business Consultant Services may be in...

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Special Economic Zones (Amendment) Ordinance, 2019

Notification No. 12 of 2019 (02/03/2019)

(1) This Ordinance may be called the Special Economic Zones (Amendment) Ordinance, 2019,(2) It shall come into force at once. In section 2 of the Special Economic Zones Act, 2005, in clause (v) -(i) after the words local authority, the words or trust or entry as may be notified by the Central Government, shall be inserted;...

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Review of SEZ policy & Recommendation on SEZ policy

Revitalising SEZs: From islands of exports to catalysts of economic and employment growth Proposed policy framework for employment and economic enclaves (3Es) in India The MOCI and Industry, Government of India, constituted a Committee headed by Mr. Baba Kalyani, Chairman and MD, Bharat Forge Ltd, to study the existing SEZ policy of India...

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Key Amendments under SEZ (Amendment) Rules, 2018

Article discusses amendment in Special Economic Zones Rules, 2006 vide Special Economic Zones (Amendment) Rules, 2018 which were notified vide notification No. G.S.R. 909(E). dated 19th September, 2018....

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GST on Special Economic Zone & one case study on SEZ relating to impacts of GST on Supply of Services provided by SEZ Developer to SEZ Unit/s

GST on Special Economic Zone & one case study on SEZ relating to impacts of GST on Supply of Services provided by SEZ Developer to SEZ Unit/s Section 2 (19) of Integrated Goods and Services Tax Act, 2017 “Special Economic Zone” shall have the same meaning as assigned to it in clause (za) of section […]...

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Advisory for Taxpayers to file Refund for Multiple Tax period

1. Refund application filing for multiple tax period is available for below grounds of refund:a. Export of Goods & Services-Without payment of Taxb. Supplies made to SEZUnit/SEZDeveloper-Without payment of Tax2. Refund application can be filed using refund application Form GST-RFD-01A & selecting a particular tax period 3. The multiple ta...

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Special Economic Zones (Amendment) Rules, 2018

Notification No. G.S.R. 909(E) (19/09/2018)

(1) These rules may be called the Special Economic Zones (Amendment) Rules, 2018. (2) They shall come into force on the date of their publication in the Official Gazette....

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Procedure for Establishment of Special Economic Zone (SEZ) In India

1. Introduction to Special Economic Zone (SEZ) In India A special economic zone (SEZ) is a geographical region that has economic laws that are more liberal than a country’s domestic economic laws. The Special Economic Zone (SEZ) policy in India first came into inception on April 1, 2000 to overcome the shortcomings experienced on ac...

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SEZ Rules to be aligned with GST laws by July end

Centre will come out with amendments to Special Economic Zones (SEZ) Rules, 2006 synchronised with Goods and Services Tax (GST) laws by end of this month, a top official in the Union Ministry of Commerce and Industry said at an ASSOCHAM event held in New Delhi today....

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Zero Rated Supplies to SEZ

Supplies to SEZ unit/ Developer are Zero-rated Supply: In terms of Section 16 of the IGST Act, 2017, the following supplies of goods or services are considered as zero-rated supply. (Relevant provision of Section 16 is reproduced here in below):...

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Benefits To SEZ Entities Under The Income Tax Law

An entrepreneur, who begins to manufacture or produce articles or things or provide any services during the period beginning from 1st April, 2005 to 31st March, 2020, shall be eligible to take a deduction under section 10AA with respect to the export turnover of his unit located in SEZ....

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Uniform list of services to be followed in SEZs for IGST Exemption

F.No. D.12/19/2013-SEZ (02/01/2018)

The BoA was appraised that consequent to implementation of GST Act, some State Government are not extending the benefits of IGST exemption for default services, Since, SEZs are exempt from IGST and the above matter was placed before 80th BoA meeting held on 17th November, 2017. The BoA, after deliberations, approved the reiteration of the...

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Open Letter on issues in Supplies to SEZ Units / Developers with Suggestions

Issue – 1 : All Suppliers to SEZ Units / SEZ Developers Need to Compulsorily Register under GST- Supplies to SEZ Units / SEZ Developers is treated as Inter-State Transaction as per provisions of Sec 7(5) of IGST Act, 2017. Therefore all such suppliers are Compulsorily Registration under GST irrespective of their Turnover as per Sec 24...

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Supply of Services to SEZ Unit / SEZ Developer

Defining export of service has been very tricky due to intangible nature of service transaction and contradictory provisions in GST Law. Due to this nature of services, there has been constant confusion regarding meaning of export of services and its ramifications in various types of transactions. Let us discuss here one such case of supp...

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SEZ Act 2005 vis-à-vis GST Act 2017

Notification 18/2017 – of IGST rates - exempts services imported by a unit or a developer in the Special Economic Zone for authorised operations, from the whole of the integrated tax leviable thereon under section 5 of the Integrated Goods and Service Tax Act, 2017 (13 of 2017). No IGST on the import of services by the SEZ unit or devel...

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GST-a real major incentive for making investments in SEZs

Though imposition of Minimum Alternative Tax (MAT) in 2011 slowed down growth of special economic zones (SEZs), but implementation of Goods and Service Tax (GST) provides wonderful opportunity for making investments in Indian SEZs, a top Commerce Ministry official said at an ASSOCHAM event held in New Delhi today....

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IGST refunds DTA vs SEZ transactions

The article primarily deals with the procurements made by the SEZ units from the DTA suppliers and the tax ability thereon. It contains a summarized procedure for availing supplies at zero rate of tax by the SEZ units and also discusses the refund mechanisms available in the hands of the supplier. ...

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DGFT: Can manipulation be termed as Export Promotion

DGFT exists as on date & the DGFT is the policymaker & Customs simply an implementer. However, under the new GST regime, there seems that the authority of the DGFT is totally undermined as if that authority does not exist anymore. However, it appears that the DGFT in itself has brought upon them this situation....

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‘SEZ India’ app launched by Commerce Ministry

A Mobile app named “SEZ India” has been launched by the Commerce Secretary on 06.1.2017. App would help SEZ Units and Developers to find information easily and track their transactions on SEZ Online System. ...

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Special Economic Zones (Amendment) Rules, 2016

Notification No. G.S.R. 2(E) (26/12/2016)

5A. Infrastructure requirements relating to information technology, Bio-technology, Research and Development facilities, Fabless Semi-conductor Industry and Electronic Manufacturing Services...

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Reg. Duty Reimbursement for goods supply to SEZ Developers

Instruction No. 86 (31/10/2016)

Amendment to Instruction No. 9 regarding Procedure for Reimbursement of Duty (ROD) in lieu of drawback for supply of goods to SEZ Developers against Indian Rupees....

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Checklist of Documents for area notification & Shifting of unit from one SEZ to other

No.D.12/45/2009-SEZ (14/07/2016)

Instruction regarding documents to be forwarded for full notification/additional area notification/partial de-notification/full de-notification/change of name of developer or co-developer and shifting of unit from one SEZ to another SEZ-reg....

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FAQs on Exchange Earner’s Foreign Currency Account

Q 1. What is an EEFC Account and what are its benefits? Ans. Exchange Earners’ Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorised Dealer Category – I bank i.e. a bank authorized to deal in foreign exchange. It is a facility provided to the foreign exchange earners, including exporte...

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An insight into Annual Performance Report (APR) under SEZ Laws

APR refers to an annual performance report to be prepared by an SEZ unit post commencement of production by it. The preparation of APR has to be done independently by each SEZ unit located in SEZ area. An APR, which has to be duly certified by an independent Chartered Accountant ...

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Gist of New Service Tax Notifications effective from 1st June, 2016

(i) Where a taxable service is exempt under any notification / special order or Service Tax is otherwise not payable, such service shall be exempt from levy of whole of KKC. (ii) KKC shall be leviable only on that portion / percentage of taxable service which is subject to Service Tax after availing abatement under Notification No. 26/201...

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Budget 2016: Exemption for diamond trading in SEZ

The existing provisions of Section 5 of the Act provides for the scope of total income. In case of non-resident person, the taxation of income in India happens only if the income accrues or arises in India or is deemed to accrue or arise in India or is received in India. Section 9 of the Act provides circumstances under which income is de...

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Guide for power Generation, Transmission & Distribution in SEZs

No.P.6/3/2006-SEZ (vol.111) (16/02/2016)

Power Guidelines for power Generation, Transmission and Distribution in Special Economic Zones (SEZs) were issued on 27th February, 2009 and subsequently replaced by the guidelines issued on 21st March, 2012.These guidelines were further reviewed and guidelines dated 21st March, 2012 were withdrawn vide letter dated 6th April, 2015....

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Simplification of SEZ Rules- Inter Unit Transfers – regarding

84/SEZ, (16/04/2015)

Instruction No. 84/SEZ, Dated : April 16, 2015 With a view to promote the ease of doing business further, it is advised that SEZ Units are now allowed to remove goods for repair, replacement, testing, calibration, quality testing and research and development purposes also on selfattestation basis under intimation to the Specified Officer ...

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Role of IT Sector is Crucial to Promote E-Governance – FM

FM: Role of IT Sector is Crucial in Order to Promote E-Governance for Empowering Citizens; to Promote the Inclusive and Sustainable Growth of the Electronics, IT and ITeS Industries and Enhancing India’s Role in Internet Governance...

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Service Tax Exemption to SEZ – Absence of Control mechanism

SEZ Act provides exemption of duties of customs, central excise and service tax for operations within SEZs subject to certain conditions. In this article we have discussed issues in Compliance by SEZs of Service Tax Related provisions and problems in monitoring of misuse of such exemptions :- 1. Absence of mechanism for accounting of Serv...

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Income & Wealth Tax Issues in SEZ assessment

1. No time limit for realisation of exports proceeds The intent of enactment of sections 10A/10B/10BA/10AA in the Income Tax Act, 1961 is to encourage exports which in turn would infuse the economy with foreign currency remittances. Timely ‘foreign currency remittances’ into India is the underlying intent spelt out in section 10A, sec...

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Can SEZ unit claim exemption from CVD when cleared to DTA based on an Exemption Notification

Roxul Rockwool Insulation India Pvt Ltd Vs UOI (Gujrat High Court)

Can SEZ unit claim exemption from CVD when cleared to DTA based on an Exemption Notification issued under Section 5A of CEA’1944 although when there is specific bar under Section 5A for SEZ units?...

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Check List for passing on upfront service tax exemption to SEZ Unit/Developer/Co-Developer

Effective from 01.07.2013 in terms of service tax notification no 12/2013-ST, All SEZ Unit/ Developers/ Co-developers have to provide Form A2 authorisation from service tax authority for availing the upfront service tax exemption otherwise first pay service tax and claim refund of it from the Govt....

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Harmonization of Rules, formats & fees in all SEZs

The Ministry of Commerce and Industry, Department of Commerce vide SEZ Division Letter in D.12/25/2012-SEZ, dated October 28, 2014, has harmonized the Rules, formats and fees in all the SEZs formats by standardizing the following procedures for adaption in all Zones:...

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Digitalization of applications/permissions by SEZ Units/ Developers

As part of ‘Ease of Doing Business’ initiative of Department of Commerce (DOC), following transactions were identified by DOC as important applications made by SEZ units and Developers to Development Commissioner’s office and DOC for various Approvals/intimations/reporting. DOC had requested NDML to develop and deploy online sub...

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A Brief synopsis on Special Economic Zones (SEZ)

Brief Highlights about SEZs Special Economic Zone schemes provides for setting up of SEZs, which have been introduced by the Indian Government with the basic idea of providing the world class infrastructure and other facilities which are required for successful growth of the business and thereby growth of the economy. These are treated as...

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Guidelines on implementation of suo-motu disclosure under RTI Act, 2005

No.1/6/2011-IR (22/09/2014)

It was required that each Ministry/Public Authority should get its proactive disclosure package audited by third party every year and such audit should be communicated to the CIC through publication on their own website. It has been noticed that most of the Ministries/Public Authorities have not yet got their proactive disclosure package ...

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MoC urges Finance Minister to restore MAT and DDT exemption to SEZ

As per the original provisions under the Special Economic Zones (SEZs) Act, 2005 and Rules, 2006, exemption from Minimum Alternate Tax (MAT) in the case of SEZ Developers and Units as also the exemption from Dividend Distribution Tax (DDT) for SEZ Developers were granted....

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Further Amendment in Exemption from Service Tax/Refund of Tax Paid by SEZ –Developers/Units after Final Budget 2014-15

Before discussing Notification No. 7/2014 –Service Tax dated 11-07-2014 came in response to Budget Speech of Shri Arun Jaitley, finance minster under Prime minister ship of   Shri Narendra Modiiji. I would like to bring to your attention previous position for exemption from Service Tax/Refund of tax paid by Special Economic Zones – ...

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Special Economic Zones-Notifications/Exemptions Withdrawn

Amendments by Finance Act, 2011 to withdraw exemption from MAT & Dividend Distribution Tax to SEZ developers/units are not unconstitutional. In the impugned amendment it is made clear that it is prospective in nature. Therefore the impugned amendments can neither be said unreasonable or arbitrary....

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Amendment in Exemption from Service Tax/Refund of Tax Paid by SEZ –Developers/Units

Central Board of Excise and Customs, Ministry of Finance has rescinded Notification No. 40/2012-ST dated 20th June 2012 and introduced new Notification No. 12/2013-ST dated 01-07-2013. 1. As per this Notification where the specified services received by the SEZ unit or the Developer are used exclusively for the authorised operations, the ...

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Effect of MAT on SEZ on Investors

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...

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India Do not have the Concept of Tax Free Zones

There is no concept called Tax Free Zones as such in operation. However, there are schemes like Special Economic Zones (SEZs) and Export Oriented Units (EOUs) which provide tax exemptions. Both above schemes are administered by the Department of Commerce. ...

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Guidelines on Handling of Court Cases and Other Litigation Matters Relating to Sezs

NA (09/01/2012)

In all other matters, the concerned DC, SEZ should take all necessary steps, including consultation with Government Counsel and represent the matter before the relevant Court on behalf of UoI also....

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Discussion Paper on Potential Reform of the SEZ Policy and Operating Framework

NA (12/11/2011)

The SEZ sector has grown significantly since the enactment of the SEZ Act 2005 and Rules in 2006, in terms of the number of SEZs, investment attracted, and employment and exports generated. While these achievements are irrefutable and significant, a comprehensive analytical assessment of the performance of the sector and certain key devel...

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Whether the benefit of deduction under Section 10A can be extended to inter-state sales made to another industrial unit in a SEZ, payment in respect of which is received in Indian rupees?

Commissioner of Income Tax, Cochin Vs Electronic Controls & Discharge Systems (P) Ltd (Kerala High Court)

Commissioner of Income Tax, Cochin Vs Electronic Controls & Discharge Systems (P) Ltd [2011] 13 Taxmann.com 193 (Kerala High Court)- Benefit of deduction under Section 10A is not available in respect of sales made to a unit in Special Economic Zone even though such sales are considered as ‘deemed exports’ under the provisions of the S...

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Performance of SEZ in last three years

Land is a State subject. Land for SEZs is procured as per the policy and procedures of the respective State Governments. As per information available in respect of 381 SEZs, 82.3% of land is waste/barren/dry/industrial, 15% of land is single crop and 2.7% of land is double crop. A Statement containing state-wise distribution of land are...

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Tax sops withdrawal from SEZs to impact exports – Assocham

Withdrawal of tax benefits from special economic zones (SEZs) would adversely impact India's exports and economic sentiments, Assocham today said. Developers have invested huge money in SEZs. If tax benefits are not given, there will be adverse impact on exports and economic sentiments, the chamber said. It said that about Rs 30,000 cror...

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SEZ – Views of the Industry sought by MCI on its proposal to relax conditions for Project & Employment Visa for SEZ

Circular No.. 12/2/2011-FOI (05/05/2011)

CIRCULAR [NO. 12/2/2011-FOI], DATED 5-5-2011 It has been realised that while this stipulation would remain to be a guiding factor to operate E-visa regime in general, units bringing large amount of FDI in SEZs could be granted exemption from this stipulation for a few of their foreign employees who are specialists in their respective fiel...

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SEZ – Clarification on FTWZ issues

Insruction No. 76 (22/03/2011)

The undersigned is directed to refer to the Instruction No. 49, dated 12-3-2010 and Instruction No. 71, dated 12-11-2010 on the subject mentioned above. Instruction No. 71 was issued to amend the point No. IV of the Instruction No. 49. It was clarified that the units in FTWZ in sector specific SEZ can store goods required for development ...

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Revenue diversion from non-SEZ areas to SEZs noticed -CBDT

Amidst hue and cry by developers over the Budget proposal to impose MAT on SEZs, Central Board of Direct Taxes today said it has detected revenue diversion from domestic operations to the tax free enclaves. ...

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A brief on exemptions available to SEZ unit or SEZ developer from CST under CST Act 1956

Section 8(6),8(7) and 8(8) of the CST Act deals with the exemptions available to a SEZ unit or SEZ developer from CST. When goods are sold to a SEZ unit or SEZ developer then no CST is payable by such unit or developer as per the above sub sections subject to fulfillment of certain conditions. The conditions and forms relating to such exe...

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SEZ – Rule 47(3) of SEZ Rules, 2006-Duty for sale of power from SEZ to DTA

Instruction No. 75, (07/02/2011)

INSTRUCTION NO. 75, DATED 7-2-2011. The undersigned is directed to refer to the Instruction No. 67 issued vide letter of even number dated 28th October, 2010 on the subject mentioned above and to say that the last two lines of the same have been modified to read as under:- "that operation of Rule 47(3)(a), (b), (d) and (e) of SEZ Rules, ...

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Section 4 of the Special Economic Zones Act, 2005 – Omnibus Industrial Development Corporation of Daman and Diu and Dadra and Nagar Haveli Ltd.

S.O. 29(E), (07/01/2011)

Whereas M/s. Omnibus Industrial Development Corporation of Daman and Diu and Dadra and Nagar Haveli Limited, had proposed under section 3 of the Special Economic Zones Act, 2005 (28 of 2005), (hereinafter referred to as the said Act) to set up a sector specific Special Economic Zone for information technology and information technology en...

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Section 4 of the Special Economic Zones Act, 2005 – G.P. Realtors Pvt. Ltd.

S.O.3043(E), (24/12/2010)

NOTIFICATION NO. S.O.3043(E), DATED 24-12-2010- Central Government is satisfied that requirements under sub-section (8) of section 3 of the said Act, and other related requirements are fulfilled and it has granted letter of approval under sub-section (10) of section 3 of the said Act for development operation and maintenance of the sector...

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Haryana to exempt SEZ developers from local taxes

In a big relief for the Special Economic Zone (SEZ) developers in the state, the Haryana government today said it would exempt them from local taxes and cess, as given to SEZ units. "We will extend exemption (from taxes, duty) to SEZ developers als...

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BOA grants extra time to 20 SEZ developers to execute projects

The government has given more time to 20 SEZ developers, including Tata Consultancy Services and Mahindra World City, to execute their projects. At a meeting on January 14, the Board of Approval (BoA) headed by Commerce Secretary Rahul Khullar also ...

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Constitution of Approval Committee for such SEZ notified during 2006 to 2008 without simultaneously notifying constitution of Approval Committee and deemed status of Inland Container Depot for SEZs

NOTIFICATION NO. S.O. 3042(E) (24/12/2010)

Section 13 of the Special Economic Zones Act, 2005 – Constitution of Approval Committee for such SEZ notified during 2006 to 2008 without simultaneously notifying constitution of Approval Committee and deemed status of Inland Container Depot for SEZs NOTIFICATION NO. S.O. 3042(E), DATED 24-12-2010 Whereas, the Central Government, in...

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Amendment to the Instruction No. 69 containing guidelines to regulate functioning of plastics/Used clothing units in SEZs

SEZ: INSTRUCTION NO. 74 (31/12/2010)

SEZ : Amendment to the Instruction No. 69 containing guidelines to regulate functioning of plastics/Used clothing units in SEZs INSTRUCTION NO. 74, DATED 31-12-2010 I am directed to refer to Instruction No. 69 dated 4th November, 2010 of this Department on the subject mentioned above. It has been decided to amend para 2(iii) of the [&hell...

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SEZ – Creation of Single Window Mechanism for granting various statutory approvals under Environmental and Regulation

SEZ: INSTRUCTION NO. 73 (29/12/2010)

SEZ : Creation of Single Window Mechanism for granting various statutory approvals under Environmental and Regulation INSTRUCTION NO. 73, DATED 29-12-2010 The undersigned is directed to enclose a copy of D.O. letter No. 23-16/2009-HSMD, dated 23-11-2010 from Shri Rajiv Gauba, Joint Secretary, Ministry of Environment and Forests along with...

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Dept. of Commerce instructs DCs not to block transfer of used assets into SEZs and issues guidelines for SEZ development

The Department of Commerce, Ministry of Commerce and Industry has issued Instruction Nos. 65 and 66 on 27 October, 2010 and Nos. 67 and 68 on 28 October, 2010 to Development Commissioners (...

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Rescission of all previous notifications appointing Director, Software Technology Parks of India as Development Commissioner of IT& ITES SEZs

NOTIFICATION (F.5/15/2010-SEZ) (20/12/2010)

Section 11 of the Special Economic Zones Act, 2005 – Development Commissioner – Rescission of all previous notifications appointing Director, Software Technology Parks of India as Development Commissioner of IT & ITES SEZs NOTIFICATION (F.5/15/2010- SEZ), DATED 20-12-2010 In exercise of the powers conferred by sub-section (1) of s...

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Parliament's Standing Committee criticises government for not doing a review of tax exemptions given to SEZ

Parliament's Standing Committee on Finance has criticised the government for not doing a review of the tax exemptions given to Special Economic Zones (SEZs) and an evalutation of the losses due to these. In April, the committee had asked the government for a study group on the issue.The finance ministry, in its response, said it had initi...

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Section 11 of the Special Economic Zones Act, 2005 – Rescission of all previous notifications appointing Director, Software Technology Parks of India-Bangalore as Development Commissioner of Information Technology and Information Technology Enabled Servic

S.O. 2686(E), (29/10/2010)

NOTIFICATION NO. S.O. 2686(E), DATED 29-10-2010 - In exercise of the powers conferred by sub-section (1) of section 11 of the Special Economic Zones Act, 2005, the Central Government hereby rescinds all previous notifications appointing Director, Software Technology Parks of India-Bangalore as Development Commissioner of Information Techn...

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Commerce Ministry to set up committee to simplify EOU procedures

The Commerce Ministry today said it will set up a committee to recast the export-oriented unit scheme so that the scheme remain attractive even after the end of tax sops in 2011. "EOUs should be re-modeled because challenges and environment have cha...

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SEZ – Consolidated guidelines /instructions issued on the staff management of Government and Private Special Economic Zo

14/10/2010

The SEZs are headed by Development Commissioners (Joint Secretary/Director/Deputy Secretary Level at the Centre) with supportive Customs and Ministerial Staff. Central Government appoints Development Commissioner in one or more Special Economic Zone. [Section 11(1) of the SEZ Act], Central Government also appoints such officers an...

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Guidelines for Development of Special Economic Zones (SEZs)

Guidelines for Development of Special Economic Zones (SEZs) 1. BACKGROUND: India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia’s first EPZ set up in Kandla in 1965. With a view to overcome the shortcomings experienced in the EPZ format, a Specia...

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SEZ – Clarification on Rule 47(3) of SEZ Rules, 2006 – Duty for sale of power from SEZ to DTA – Instruction No. 67, dated 28-10-2010

Instruction No. 67, (28/10/2010)

Instruction No. 67, dated 28-10-2010. The undersigned is directed to say that in order to implement the Custom Notification No. 91/2010, dated 6-9-2010, it has been decided that operation of Rule 47(3) of SEZ Rules, 2006 is kept in abeyance w.e.f. 6-9-2010 till further orders....

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DTC 2010-Key proposals and impact on Real Estate Sector

The Real Estate sector has been a key driver to India’s economic growth trajectory. The tax incentives offered to companies operating in this sector have provided them an edge in today’s fiercely competitive market. As such, continuation of these tax...

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