Fiscal Benefits in SeZs                                                                                                       

» SEZ developers are entitled for income-tax exemption for a block of 10 years in 15 years under section 80-IAB of the Income-Tax Act ,1961

» The provisions of. Section 115JB relating to MAT shall not apply to the income accrued or arising on or after the 1st day of April, 2005 from any business carried on, or services rendered, by an entrepreneur or a Developer, in a Unit or Special Economic Zone

» No tax on distributed profits shall be chargeable in respect of the total income of an undertaking or enterprise engaged in developing or developing and operating or developing, operating and maintaining a Special Economic Zone for any assessment year on any amount declared, distributed or paid by such Developer or enterprise, by way of dividends (whether interim or otherwise) on or after the 1st day of April, 2005 out of its current income either in the hands of the Developer or enterprise or the person receiving such dividend

» No interest income will be taxable received by non-resident or a person who is not ordinary resident in India on a deposit made in Offshore banking Unit (Section 10(15)(viii) of Income Tax Act,1961

» Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area to any Special Economic Zone (Section 54 GA of Income Tax Act,1961)

» Developer of SEZ may import/procure goods without payment of duty for the development, operation and maintenance of SEZ.

» Services provided to the developers of special economic zones and consumed within such Special Economic Zone are exempted from paying service tax subject to the fulfillment of certain conditions.

» CST Exemption to SEZ developers and units on inter sate purchase of goods

» Exemption from Central Excise duty on procurement of capital goods, raw materials, consumable spares etc. from the domestic market