Goyal explains SEZ terms
Seven investors have been given extension for completing their Special Economic Zone areas in Andhra Pradesh, Commerce and Industry Minister Piyush Goyal told the Rajya Sabha 6 Dec 2019.
These are:
MAS Fabric Park (India) Private Limited at Chintavaram village, Chillakru Mandal, Nellore District, Andhra Pradesh for Textile and Apparel business;
Andhra Pradesh Industrial Infrastructure Corporation Ltd at Gambheeram Village, Anandapuram Mandal, Visakhapatnam District, Andhra Pradesh for IT/ITES;
Dr. Reddy’s Laboratories Ltd at Devunipalavalasa Village, Ranasthalam Mandal, Srikakulam District, Andhra Pradesh for Pharmaceuticals;
Beneficent Knowledge Parks & Properties Limited at Parigi and Serikokum Villages, Parigi Mandal, C. Kodigepalli village, Madakasara Mandal, Anantapur District, Andhra Pradesh for Multi Services;
Kakinada SEZ Private Limited at Kakinada, East Godavari District, Andhra Pradesh for Multi Product.
Indus Gene Expression Ltd at Kodur and Settipalli villages, Chilamathur Mandal, Anantapur District, Andhra Pradesh for Biotech and related activities;
Wipro Ltd at Resapuvanipalem Village, Old TB Hospital Area, Visakhapatnam, Andhra Pradesh for IT/ITES.
The Minister also explained that the letter of approval granted to a SEZ developer is valid for a period of three years and within this time frame effective steps are to be taken by the developer to implement the approved proposal.
However, the Board of Approval (BoA) under Department of Commerce may, on an application by the developer and on recommendation of Jurisdictional Development Commissioner, extend the validity period of the letter of approval.
BoA has granted extension of validity period to 153 developers of SEZ across the country including the above 7 developers in Andhra Pradesh to complete their projects till now.
Developers have sought extension of validity period of the letter of approval granted to them for the execution of their projects for various reasons including adverse business climate due to global recession, delay in approvals from statutory bodies and delay in environmental clearance.
The tax exemptions and other incentives allowed to SEZs are in built into the SEZs Act, 2005.
Main fiscal concessions and duty benefits allowed to SEZ developers and units are as follows:
Exemption from Central Sales Tax, Exemption from Service Tax and Exemption from State sales tax. These have now subsumed into GST and supplies to SEZs are zero rated under IGST Act, 2017;
Exemption from Income Tax for 15 years as per Income Tax Act;
Duty free import/domestic procurement of goods;
Exemption from State sales tax and other levies as extended by the respective State Governments. fiinews.com
