It is reported that Indian finance ministry will shortly issue a notification, clarifying that SEZ units and their developers would continue to enjoy tax incentives including income tax benefits as guaranteed under SEZ Act of 2005 even after 2011 when the government adopts its new Direct Tax Code.
Dr LB Singhal director general of export promotion council for EOUs and SEZs while inaugurating ASOCHAM organized International Convention on SEZs said that ministry of commerce has been pursuing this issue with the Finance Ministry as its Direct Tax Code unveiled for public consumption is silent if existing tax benefits and income-tax exemptions would continue for SEZs and their developers after it becomes operative from 2011 onwards.
He said that “Positive indications have come to Export Promotion Council for EOUs and SEZs from Commerce Ministry that Finance Ministry is likely to issue a notification in this regard in next few weeks, enunciating that SEZ units and their developers would be entitled to avail tax benefits as guaranteed under 2005 SEZs Act after the government adopts its new Direct Tax Code.”
It may be mentioned that the SEZ Act of 2005 become operational from 10th of February 2006 under which SEZs units and their developers enjoy taxation and income-tax benefits.
Dr Singhal also announced that from November 2009 onwards, SEZ units and their developers would get online clearances from Ministry of Commerce to commence work in SEZ units in Mumbai. The decision has been taken recently that from April 2010 onwards, SEZ units in Delhi would get clearances for making their establishment operative and thereafter this facility would be extended to all parts of the country for SEZs units.
Dr Singhal stated that SEZ scheme has done extremely well after operationalization of SEZ Act and Rules on February 10th 2006 as in the SEZs incremental investment of INR 110,605 crore has been made and the exports from SEZs has gone up from 22,840 crore in 2005-06 to INR 99,689 crore in 2008-09 in the last year.
Sourse From: http://www.steelguru.com/news/index/2009/09/29/MTEzNzAy/SEZ_to_enjoy_tax_benefits_even_after_2011.html
Monday, September 28, 2009
SEZ to enjoy tax benefits even after 2011
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