Minimum Alternative Tax And Dividend Distribution Tax On Special Economic Zone

Background Karnataka High Court (High Court) in the case of M/s Mindtree (Tax Payer) v. Union of India[1] held that the imposition of Minimum Alternate Tax and Dividend Distribution Tax on SEZs is neither a breach of promise nor a violation of the doctrine of legitimate expectation and also held that tax levies on SEZs is constitutionally valid. Facts of… Read More

Tags: Dividend Distribution TaxFinance ActGovernment of IndiaIncome taxIncome Tax Act 1961SEZSEZ ActSpecial Economic Zone

Board of Approval Clears Two New SEZ Proposals

The 59th meeting of Board of Approval (BoA) on Special Economic Zones (SEZs) and 4th meeting of 2013 series on Export Oriented Units (EOUs) were held here today under the chairmanship of Commerce Secretary Shri S R Rao. This was the first meeting of the Inter-ministerial body to be held after the recent SEZ reforms… Read More

Tags: Andhra PradeshBoAIndiaMangaloreSEZSpecial Economic ZoneTamil NaduUnited States Secretary of Commerce

Amendment to Special Economic Zones Rules, 2006

No. D.12/45/2009-SEZ Government of India Ministry of Commerce & Industry Department of Commerce SEZ Division ******** Udyog Bhawan, New Delhi Dated the 12th August, 2013 OFFICE MEMORANDUM Subject: Amendment to Special Economic Zones Rules, 2006 - regarding In order to revive investors' interest in Special Economic Zones, Hon'ble Commerce & Industry Minister announced certain measures on… Read More

Tags: Government of IndiaKevin RuddNew DelhiNorthern TerritorySEZSinghSpecial Economic ZoneUnited States Department of Commerce

Concessions to SEZs

Supplies to SEZs for the authorized operations of the SEZ Units are exempted from payment of Central Excise Duties and Service Tax.  However rebate for Central Excise Duty paid by DTA supplier on supply of goods to SEZ Units can be claimed from the jurisdictional Central Excise authorities. The SEZ Act 2005 provides for setting up… Read More

Tags: Domestic Tariff AreaExportFiscal yearLok SabhaMinister of StateSEZSpecial Economic ZoneState Government

Services Provided to Special Economic Zone (SEZ) Authorised Operations Exempted From Service Tax

The Central Government has decided to exempt the services on which service tax is leviable under section 66B of the said Act, received by a unit located in a Special Economic Zone (hereinafter referred to as SEZ Unit) or Developer of SEZ ( hereinafter referred to as the Developer) and used for the authorised operation from… Read More

Tags: AuthorizationCenvat Credit RulesDomestic Tariff AreaMoney back guaranteeService ProviderSEZSpecial Economic ZoneTax exemption

Withdrawal of exemptions to SEZs cannot be treated as a breach of Doctrine of Promissory Estoppel

Mindtree Limited vs. UOI (Karnataka High Court) CLR Editorial Notes: As a corollary to the Special Economic Zones Act, 2005 (˜SEZ Act™), section 115JB(6) and section 115-O (6) were inserted to ensure that the SEZs are exempted from paying Minimum Alternate Tax (MAT) on book profits and taxes on distributed profits [Dividend Distribution Tax ("DDT")].… Read More

Tags: DDTDividend Distribution TaxDoctrine of Legitimate ExpectationDoctrine of Promissory EstoppelEstoppelFinance ActGovernmentMinimum Alternate TaxSection 115-O (6)Section 115JB(6)SEZSpecial Economic ZoneSpecial Economic Zones ActUnited States

Export of Goods and Services – Realization and Repatriation period for units in Special Economic Zones (SEZ)

RBI/2012-13/526 A.P. (DIR Series) Circular No. 108 June 11, 2013 To, All Category - I Authorised Dealer Banks Madam / Sir, Export of Goods and Services- Realization and Repatriation period for units in Special Economic Zones (SEZ) Attention of Authorized Dealer banks is invited to A. P. (DIR Series) Circular No. 91 dated April 1, 2003.… Read More

Tags: Anno DominiCategories of New Testament manuscriptsExportForeign Exchange Management ActIndiaReserve Bank of IndiaSEZSpecial Economic Zone

Incentives Given for Business Units in SEZs

The fiscal concessions and duty benefits allowed to SEZs are in built into the SEZs Act, 2005 and Rules framedthereunder. These exemptions are uniformly applicable to all SEZs and are primarily in the nature of incentives for export and are consistent with the principles that guide export promotion initiatives of the Government in general. Since… Read More

Tags: Andhra PradeshExportGovernmentMadhya PradeshMinister of StateSEZSpecial Economic ZoneWest Bengal

Investment in SEZs

As per Rule 53 of SEZ Rules 2006 the SEZ units are under an obligation to achieve positive Net Foreign Exchange (NFE) earnings to be calculated cumulatively for a period of 5 years from the commencement of production. Under Rule 53 certain categories of sales/supplies have also been permitted to be counted towards NFE earnings.… Read More

Tags: Domestic Tariff AreaExportGovernmentInternational tradeMinister of StateMinistry of Commerce & IndustrySEZSpecial Economic Zone

Cenvat Rule 6 – In case of clearances to SEZ units, No reversals are required

CLR Editorial Notes: In this appeal filed by the assessee, the challenge was against a demand raised on the appellant in terms of Rule 6(3) of the CENVAT Credit Rules 2004 for the period from July to December 2008. During the said period, the appellant (a unit in the domestic tariff area) had cleared their products to… Read More

Tags: Andhra PradeshAppealBangaloreCustoms Excise and Service Tax Appellate TribunalElectronic CitySEZSpecial Economic ZoneWipro

Imposition of MAT on SEZs

The provisions of Minimum Alternate Tax (MAT) have been made applicable to Special Economic Zone (SEZ) Developers and Units with effect from 1st April, 2012. The imposition of MAT on SEZs has brought the book profits of SEZ units and developers under the ambit of Sec 115JB of the I-T Act, 1961. The investment in… Read More

Tags: Anand SharmaBusiness process outsourcingCroreInformation technologyMATMinimum Alternate TaxSEZSpecial Economic Zone

Foreign Trade Policy 2009-14 – Highlights of Annual Supplement (2013-14)

Highlights of Annual Supplement (2013-14) to the Foreign Trade Policy 2009-14 Announced by Shri Anand Sharma 1. Measures to revive investors™ interest in SEZs. 1.1 A package of measures has been formulated to revive investors™ interest in SEZs and to boost exports. The salient features of the package are:- (i) In view of the acute… Read More

Tags: Anand SharmaCommercial policyExportFocus Market SchemeIndiaMinistry of TextilesSEZSpecial Economic Zone

SEZs Draft Guidelines to regulate functioning of worn and used clothing units

No. D.6/35/2012-SEZ Government of India Ministry of Commerce & Industry Department of Commerce SEZ Division Udyog Bhawan, New Delhi Dated. 3rd April, 2013 To: 1. All Ministry/Department of Government of India 2. All Chief Secretaries of State Government 3. All Zonal DCs 4. EPCES Subject: Draft Guidelines to regulate functioning of worn and used clothing units… Read More

Tags: Directorate General of Foreign TradeDomestic Tariff AreaGovernment of IndiaNew DelhiSEZSEZ ActSpecial Economic Zone

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