SEZ Benefits for Tenants
The Unit Holder in SEZ shall be entitled to the following exemptions, namely :
- Exemption from any duty of customs, on goods imported into, or service provided, in a Special Economic Zone or an Unit.
- Exemption from any duty of customs, on goods exported from, or services provided, from a Special Economic Zone or from an Unit, to any place outside India.
- Exemption from any duty of excise, on goods brought from Domestic Tariff Area to a Special Economic Zone or Unit.
- Exemption from service tax, on taxable services provided to an Unit to carry on the authorised operations in a Special Economic Zone.
- Exemption from the securities transaction tax, in case the taxable securities transactions are entered into
by a non-resident through the International Financial Services Centre.
- Exemption from payment of Central Sales Tax on sale or purchase of goods other than newspapers if such goods are meant to carry on the authorised operations.
An entrepreneur of the Special Economic Zones Act, 2005, from his Unit, who begins to manufacture or produce articles or things or provide any services during the previous year relevant to any assessment year commencing on or after the 1st day of April, 2006,
a deduction of –
(i) hundred per cent of profits and gains derived from the export, of such articles or things or from services for a period of five consecutive assessment years beginning with the assessment year relevant to the previous year in which the Unit begins to manufacture or produce such articles or things or provide services, as the case may be, and fifty per cent of such profits and gains for further five assessment years and thereafter;
(ii) for the next five consecutive assessment years, so much of the amount not exceeding fifty per cent of the profit as is debited to the profit and loss account of the previous year in respect of which the deduction is
to be allowed and credited to a reserve account (to be called the "Special Economic Zone Re-investment Reserve Account") to be created and utilised for the purposes of the business of the assessee in the manner laid down in Sub-section (2).