- SEZ Act, 2005, supported by SEZ Rules, came into effect on 10th February, 2006, providing simplification of procedures and single window clearance on matters relating to central as well as state governments.
- Formation of 19 members inter-ministerial SEZ Board of Approval (BoA) for approval.
- The SEZ Rules provide for different minimum land requirement for different class of SEZs. Every SEZ is divided into a processing area where alone the SEZ units would come up and the non-processing area where the supporting infrastructure is to be created.
- Simplified compliance procedures and documentation with an emphasis on self - certification.
- Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units.
- 100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.
- External commercial borrowing by SEZ units unto US $ 500 million in a year without any maturity restriction through recognized banking channels.
- Exemption from Central Sales Tax.
- Exemption from Service Tax.
- Single window clearance for Central and State level approvals.
- Exemption from State sales tax and other levies as extended by the respective State Governments.
- Procedural ease and efficiency for speedy approvals, clearances and customs procedures and dispute resolution.
- Simplification of procedures and self-certification in the labour acts.
- Incentives under Merchandise Exports from India Scheme (MEIS) and Services Exports From India scheme (SEIS) to units located inside special economic zones (SEZs). Exporters will be allowed rewards for export of goods given as a percentage of realised free-on-board (FOB) value. The rate of these rewards, given in the form of duty scripts, will be 2.5%.
Read more: http://www.sezindia.nic.in/index.asp