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.
Supplies from DTA to SEZ units treated as deemed exports. Domestic supplier may claim DEPB in lieu of drawback.
100% Income Tax exemption for 5 years and 50% exemption for 2 years thereafter.
100% foreign direct investment (FDI) and full and free repatriation of export proceeds permitted.
SEZ units could dispose of rejects, waste, scrap in domestic market on payment of duties.
Part of production or production process maybe undertaken in the domestic area including jewellery units. Sub contracting part of production is also permitted.
