Note on SEZs

  • Only SEZ Offers Income Tax benefits of Zero Tax over and above multiple Tax benefits including Customs Duty exemption.
  • The above Income Tax benefit is available to SEZ units becoming operational before Mar 2020, units which have completed initial 15 year cycle have a potential to register new units to avail this before the sunset clause.
  • As Developers sun set clause has already elapsed in Mar 18, there will be very little new supply of SEZ spaces.
  • Due to above factors SEZ space shortage is already witnessed in markets like Pune.

Some Incentives & benefits of SEZs

  • Duty free import/domestic procurement of all goods (except prohibited goods) for carrying out the authorized operations.
  • 100% Income Tax exemption under Section 10AA of the Income Tax Act, 1961 for first 5 years, 50% for the next 5 years and for next 5 years 50% of the profit if such profit is reinvested to the SEZ units
  • External commercial borrowing be SEZ units upto USD 500 million in a year without any maturity restriction, through recognized banking channels.
  • Exemption from GST on sales made from Domestic Tariff Area (DTA) to SEZs.

Q PARĆ’ offers an unique proportion with 1.5 million Sq Ft development , wherein a unit can register with initial requirement availing the Income Tax benefits before the Sun Set clause and continue to seamlessly expand in same campus to maximise the benefits in case of business expansion