How do I set units in SEZ?
Any individual, co-operative society, company or partnership firm can file an application for setting up of Special Economic Zone. The application is to be made in Form-A to the concerned State Government and the Board of Approval (BOA) in the Department of Commerce, Government of India.
What is positive NFE?
Requirements of Positive NFE The units should have a positive NFE (Net Foreign Exchange) which is A-B where A is FOB value of Exports and B is the sum total of CIF value of all imported inputs and capital goods and all payments (like commission, royalty, fees, dividends, interest on borrowings) made in FOREX.
What is the minimum percentage of employees that should be Onboarded for a specific SEZ unit?
Following are some of the conditions listed by the State High Level Clearance Committee, Karnataka: Prepare a Human Resource Development plan to train the land losers / local persons and offer them employment opportunities. Provide a minimum 80% job to local people on overall basis.
What are SEZ units?
SEZ Units: Units are entities that are primarily who have been allotted LOA for engaging in exports (including deemed exports), imports, domestic sourcing and domestic sales of goods and services under the SEZ regulatory framework.
What is the difference between SEZ unit and SEZ developer?
An SEZ unit does not require any license for imports. SEZ Developers /Co-Developers and SEZ Units enjoy Direct Tax and Indirect Tax benefits as prescribed in the SEZs Act, 2005.
Is GST applicable for EOUs in India?
A. EOU is like any other supplier under GST and all the provisions of the GST Law will apply. However, the benefit of Basic Customs Duty exemption on imports will continue.
What is EOUs?
The full form of EOU is Export Oriented Units. Introduced in 1981, the scheme aims to increase exports from India, to thereby increase foreign exchange earnings and create employment. This scheme also complements other schemes such as Free Trade Zone (FTZ) and Export Processing Zone EPZ in India.
What is the maximum cap on non processing area in a SEZ?
Min area for IT/ITES, Biotechnology, Gems and Jewellery SEZ- 10 ha • Min area for Multi Product SEZ – 1000 ha. Note: The overall ceiling in each category will be revised upwards in proportion with the available FAR and area. Maximum area permissible for Non Processing Zone 50 Ha.
How much is amortised for annual calculation of NFE?
For annual calculation of NFE, the value of imported capital goods and lump-sum payment of foreign technical knowhow fee shall be amortised @ 10% for each of the 10 years.
Are there any tax exemptions for SEZ units?
Exemption from service tax to SEZ units. DTA sales can be undertaken subject to achievement of positive NFE. Net Foreign Exchange (NFE) shall be calculated cumulatively for a period of 5 years from the commencement of commercial production. 1st – 2nd year: 5% each year. 3rd – 5th year: 10% each year.
Is there a minimum export performance for SEZ?
There is no condition for minimum export performance. However, the units will have to achieve positive Net Foreign Exchange, which shall be calculated cumulatively for a period of 5 years from the date of commencement of production. Following supplies are considered towards achievement of Net foreign exchange earnings:
What happens if a unit is NFE negative?
In case a unit is NFE negative and claims that it is due to foreign exchange fluctuation, the Approval Committee may consider such cases provided that the unit gets the computations certified by the Authorised Bank, on a case to case, basis. This issues with the approval of AS (SEZ).