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With the enactment of the SEZ Act 2005 supported by SEZ Rules 2006
by the Government of India, the best of the facilities and incentives
are now available under the SEZ scheme. Every company is now looking at
SEZ scheme for their Export Industry / Services. Why don't you become
part of it and reap the benefits. The full utilization of such
infrastructure facilities and generous incentives depends on where your
proposed facility is located. Of course, there is no better place than
Visakhapatnam Special Economic Zone (VSEZ). You do business and We take care of the rest.
Advantage VSEZ
1. High quality infrastructure at affordable rentals with initial concessions
2. Action oriented, responsive and export-friendly administrative set up
3. On-line services for all clearances/permissions
4. Strategically located - Easy accessibility to South and South East Asian countries
5. Strong industrial base and productive workforce
6. Readily available skilled workforce at reasonable wages
7. High quality and low cost social infrastructure
8. Well connected by rail, road and air to rest of the country
9. In-house customs facility for quick and easy clearances
DEVELOPMENT OF NEW SEZs:
SEZ Scheme allows State Governments, Private firms and individuals to
develop multiproduct SEZs in 1000 Hectares, Sector Specific SEZs in 100
Hectares and IT/ITES Biotechnology/ non connventional energy and
gem/jewellery SEZs in 10 Hectares of contignous and
BENEFITS TO THE SEZ DEVELOPERS
- Duty-free (Customs and Central Excise) import/procurement of goods for development, operations and maintenance
- Income Tax exemption for 10 years in the first 15 years
- Full freedom in allocation of developed plots/sheds to
approved SEZ units on purely commercial basis. They can either
sell, lease or rent the created facility
- Full authority to provide services like water, electricity, security etc., purely on commercial basis
- Facility to develop township within SEZ with residential
areas, markets, playgrounds, clubs, recreation centers etc., on
commercial lines
What SEZ Scheme Offers you:
- SEZ is a designated duty-free enclave and treated as foreign territory for trade operations, duties and tariffs
- Units can be set up for manufacturing, trading or service activity
- Policy permits self-certification procedures for all clearance/permissions
- Units have to achieve only positive Net Foreign Exchange (NFE)
within five yers i.e., A-B>0 where (A) is the FOB value of exports;
and (B) is CIF value of imports
- Exemption from Customs and Central Excise duty on import/local
procurement for the purpose of establishment and maintenance of the unit
- 100% Direct Foreign Investment permitted through automatic route
in SEZs and full and free repatriation of export proceeds permitted
- Sub contracting of Part of production or production process
permitted in the Domestic Tariff Area. Sub contracting part of
production process is also permitted abroad
Fiscal Incentives Available to SEZ Unit:
- Exemption of Service Tax
- Exemption from payment of Central Sales Tax (CST)
- Exemption from payment of Income Tax on export income for the
first 5 years, 50% for next five years and 50% of ploughed in profits
for next 5 years
EXCLUSIVE SEZ POLICY :
- The Development Commissioner in the Nodal Authority to facilitate all Central/State level clearances.
- The Development Commissioner has been delegated, with the powers of Commissioner of Labour for SEZs.
- Self-certification procedure has been introduced for filing of regular returns
- Public Utility Status granted
- Women working in night shifts allowed for software units
Incentives OFFERED BY State Government of Andhra Pradesh
- Single Window clearance Mechanism for all State leve clearances.
- Exemption from levy of AP VAT.
- Exemption from payment of stamp duty and registration fee on registration of lease deeds.
- 100% exemption from payment of stamp duty and registration
fee for loan agreements, credit deeds, mortgages and hypothecation
deeds executed by the Special Economic Zone units for assets in
the Special Economic Zone in favour of Banks and Finantial
Institutions
- Exemption from payment of capital contribution charges for supply of water
- 15% investment subsidy on fixed capital investment to Small
Scale Industries (SSI) and Tiny Industrial Units subject to a
limit of Rs.15 lakhs
- 25% of the tax paid during one financial year will be
ploughed back to all eligible industries as a grant by the
Government towards the payment of tax during next year
- 3% interest rebate on the Prime-Lending Rate (PLR) on term
loans taken by new tiny/SSI units subject to a limit of Rs.5 lakh
per year. This will be 5% if SC and ST entrepreneurs promote the
units
- An additional investment subsidy of 5% subject to a maximum
of Rs.5 lakh will be provided to women entrepreneurs. They will be
also given a 5% interest rebate on PLR
- Projects with an investment of Rs.100 Crore and above are
eligible for all the incentives available to large and medium
scale industries
- The Government will also extend tailor-made benefits to suit
to a particular investment requirements on case-to-case basis.
HOW TO APPLY:
Apply, in prescribed proforma (Form-F) of SEZ Rules, 2006 in 10 copies
along with a Demand Draft for Rs.5000/- draw in favour of Development
Commissioner VSEZ payable at Visakhapatnam
The application shall be accompanied by
(i) Detailed Project Report
(ii) Income Tax Returns of the Promoters
(iii) Identity proof of the Promoters
(iv) Certificate of Incorporatin
(v) Aritcles of Association and Memorandum of Association
For Government of India Policy on SEZ scheme visit http://sezindia.nic.in
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