SEZ PPT
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Transcript of SEZ PPT
![Page 1: SEZ PPT](https://reader035.fdocuments.us/reader035/viewer/2022081413/546584b5b4af9f680b8b509f/html5/thumbnails/1.jpg)
1
Special Economic Zones in India
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SEZ AND WORLD TRADE
SEZ exports in 2000 : 850 billion
• China : 45%
• Indonesia : 10%
• Philippines : 57%
• Costa Rica : 56%
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ROLE OF SEZS IN INDIAN ECONOMY
• to provide internationally competitive environment
• to increase share in global exports
• to encourage FDI and enhance GDP
• to act as laboratories for changes in our policies.
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OUR APPROACH
• Special fiscal regime, to attract private investments for developers
• GOI and SG to develop the external infrastructure
• Attractive facilities for setting up units
• Key role for State Government and private sector in the development of SEZs
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OUR APPROACH (contd.)
• Deregulation and single window for State and Central laws
• Legal framework : windows in existing laws leading to Special Central and State legislation for SEZ
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LEGAL AND POLICY FRAMEWORK- AN UPDATE
• Developer of SEZ
• Units in SEZs
• DTA supplier
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DEVELOPER OF SEZ
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FACILITIES NOTIFIED FOR DEVELOPERS OF SEZs
• 100% FDI allowed for:
(a) townships with residential, educational and recreational facilities
(b) franchise for basic telephone service in SEZ.
• Income Tax exemption to developers for any block of 10 years in 15 years
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FACILITIES NOTIFIED FOR DEVELOPERS OF SEZs (Contd)
• Duty free import/domestic procurement of goods for development, operation and maintenance of SEZs
• Exemption from Service Tax and the Central Sales Tax
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FACILITIES NOTIFIED FOR DEVELOPERS OF SEZs (Contd)
• Income of infrastructure capital fund/co. from investment in SEZ exempt from Income Tax
• Investment made by individuals etc in a SEZ also eligible for exemption under section 88 of Income Tax Act
• Developer permitted to transfer infrastructure facility for Operation and Maintainence, inclusive of Income Tax benefits
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FACILITIES NOTIFIED FOR DEVELOPERS OF SEZs (Contd)
• Guidelines issued on generation, transmission and distribution of power in SEZs
• Allocation of power to SEZs from central quota
• Freedom in allocation of space and built up area to approved SEZ units on commercial basis.
• Authorised to provide and maintain services like water, electricity, security, restaurants and recreation centres on commercial lines.
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UNITS IN A SEZ
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FACILITIES NOTIFIED FOR SEZ UNITS
• No license required for import.• In addition to manufacturing, trading
and services also allowed.• Freedom to subcontract.• Single window approval by
Development Commissioner of the zone.
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FACILITIES NOTIFIED FOR SEZ UNITS (Contd.)
• No license needed to manufacture items reserved for SSI sector
• 100% FDI allowed in manufacturing through automatic route except in sectors such as defense, atomic energy.
• No cap on foreign investments for items reserved for SSI.
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FACILITIES NOTIFIED FOR SEZ UNITS (Contd.)
Under FEMA
• Guidelines issued by RBI in Nov 2002 for setting up Off-shore Banking Units in SEZs.
• External commercial borrowings by units allowed without any maturity restrictions.
• Freedom to bring in export proceeds without any time limit
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FACILITIES NOTIFIED FOR SEZ UNITS (Contd.)
Under FEMA (contd.)
• Freedom to make overseas investment • Insurance outside India allowed • Capitalisation of import payables• Commodity hedging permitted.• Foreign cos permitted to set up
branches for manufacturing activities
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FACILITIES NOTIFIED FOR SEZ UNITS (Contd.)
Customs and Excise :• Duty free import or domestic
procurement of goods for development, operation and maintenance of SEZ units.
Central Sales Tax Act :• Exemption to sales made from Domestic
Tariff Area to SEZ units.
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FACILITIES NOTIFIED FOR SEZ UNITS (Contd.)
Income Tax Act:• 100% IT exemption (10A) for first 5 years,
50% for 2 years thereafter and 50% of reinvestment for 3 years
• Permitted to carry forward losses• Offshore Banking Units allowed to have full
IT exemption for 3 years and 50% for next two years.
Service Tax: • Exemption from Service Tax to SEZ units.
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FACILITIES NOTIFIED FOR SEZ UNITS (Contd.)
Environment • Permitted facilities like golf
courses, de-salination plants, hotels and non-polluting service industries in the Coastal Regulation Zone area
• Exemption from public hearing under Environment Impact Assessment Notification.
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FACILITIES NOTIFIED FOR SEZ UNITS (Contd.)
Drugs and Cosmetics :• Exemption from port restriction
under Drugs & Cosmetics Rules
• Single window mechanism in Zones having such units
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FACILITIES NOTIFIED FOR SEZ UNITS (Contd.)
Companies Act :• SEZ to have Regional office of Registrar of
Companies.
• Exemption from requirement of domicile in India for 12 months prior to appointment as Director.
• Enhanced limit of Rs. 2.4 crores per annum allowed for managerial remuneration
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FACILITIES NOTIFIED FOR DTA SUPPLIER
Supplies from Domestic Tariff Area (DTA) to SEZ to be treated as physical export under IT, Customs and CST Act
DTA supplier entitled to :• Drawback/DEPB• CST Exemption • Exemption from State levies • Discharge of its EP• IT exemption u/s 80HHC
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PROGRESS – STATE POLICY
• AP ,UP, Maharashtra, Madhya Pradesh, Gujarat , Karnataka , Rajasthan and TN announced SEZ Policy.
• Enabling notifications issued by Maharashtra, MP, AP, Rajasthan and UP
• UP and MP have enacted State SEZ Act ; Gujarat and Maharashtra likely to do in near future
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FEATURES OF STATE SEZ POLICY:
• Exemption from state sales tax /VAT and other state levies
• Exemption from electricity duty
• Single window approval for state level clearances
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FEATURE OF STATE SEZ POLICY (Contd.)
• Declaration of Development Commissioner as Labour Commissioner under the Industrial Disputes Act.
• Simplification of returns and inspection systems.
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COMMITMENTS FOR THE IMMEDIATE FUTURE
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GOVERNMENT OF INDIA
• Enactment of Central SEZ Act
• Exemption of the SEZs from restrictive labour laws
• Facilitation of external infrastructure needs
• Special emphasis on sector specific and port based
SEZs
• Domestic and External marketing of SEZs
• Working with State Governments for State
SEZ legislation
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PROGRESS-PHYSICAL
All 8 EPZs converted into SEZs :-
• Kandla ( Gujarat) : 1965 (625 Acres)• Seepz( Maharashtra) : 1975 (110 Acres)• Noida (U P) : 1986 (310 Acres)• Madras ( T N) : 1986 (262 Acres) • Cochin ( Kerala ) : 1986 (103 Acres)• Falta ( W B) : 1986 (280 Acres)• Visakhapatnam( AP) : 1994 (360 Acres)• Surat ( Gujarat ) : 1998 (103 Acres)
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PROGRESS-PHYSICAL (contd)
Formal Approvals Given to SEZs
• Indore ( Madhya Pradesh)
• Navi-Mumbai (Maharashtra)
• Sitapura (Jaipur)
• Positra (Gujarat)
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15 SEZ approved in principle:
• Maha-Mumbai ( Maharashtra )• Vallarpadam/Puthuvypeen (Kerala)• Moradabad (U.P.)• Jodhpur(Rajasthan) • Nangunery ( T N)• Paradeep & Gopalpur (Orissa)• Kulpi and Salt Lake (W B)• Bhadohi, Kanpur, Greater NOIDA• Visakhapatnam and Kakinada, (A P) • Hassan ( Karnataka)
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FOR DETAILS VISITFOR DETAILS VISITWWW.SEZINDIA.NIC.INWWW.SEZINDIA.NIC.IN
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THANK YOU