The objectives of SEZs

The objectives of SEZs can be clearly explained as the following:-

(a) Generation of additional economic activity;

(b) Promotion of exports of goods and services;

(c) Promotion of investment from domestic and foreign sources;

(d) Creation of employment opportunities;

(e) Development of infrastructure facilities.

The major incentives and facilities available to SEZ developers include:-

·         Exemption from customs/excise duties for development of SEZs for authorized operations approved by the BOA.

·         Income Tax exemption on income derived from the business of development of the SEZ in a block of 10 years in 15 years under Section 80-IAB of the Income Tax Act.

·         Exemption from minimum alternate tax under Section 115 JB of the Income Tax Act.

·         Exemption from dividend distribution tax under Section 115O of the Income Tax Act.

·         Exemption from Central Sales Tax (CST).

·         Exemption from Service Tax (Section 7, 26 and Second Schedule of the SEZ Act).

Currently, there are about 143 SEZs (as of June 2012) operating throughout India and an additional 634 SEZs (as of June 2012) that have been formally/principally approved by the Government of India.