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 of a Single Window Clearance Mechanism for speedy implementation of SEZ Projects.  Accordingly, the State Governments are expected to take suitable steps to notify the SEZ policy and enact suitable enabling legislation in this regard for their respective States. A few States have enacted their State SEZ Acts. 

 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. Value of transactions under such categories are a very small percentage of the total exports made from SEZs. SEE THE PRESS RELEASE