Sez and eou

Mihir Doshi (B.Com, CA, CS, LLB) (2187 Points)

10 April 2012  

 

SEZ and EOU

 
 

 

 

S.NO.

Points

SEZ

EOU

 

1

INCOME TAX

FOR SEZ UNITS (OTHER THAN TRADING UNIT) 100% INCOME TAX IS EXEMPTION FOR 5 YEAR , 50% FOR NEXT 5 YEAR AND 50% EXEMPTION ON PROFIT INVESTED FOR FURTHER NEXT 5 YEARS.

100% INCOME TAX IS EXEMPTED UP TO 31.03.2011 as per SECTION 10A AND 10B OF INCOME TAX .

 

2

UNIT

SEZ unit has to be new Unit, no conversion of old unit is allowed

Running DTA unit can be converted into EOU

 

3

BENEFIT to  DTA SUPPLIER

No Cost Recovery Charges Recoverable for the custom staff Deputed during office hours. Exclusive customs staff deployed in the SEZ for handling customs work.

 Cost Recovery Charges Recoverable or MOT (merchant overtime) for the custom staff Even during office hours. NO Exclusive customs / CENTRAL EXCISE staff  for handling custom / central excise work relating the unit. 

 

4

CONSTRUCTION MATERIAL

GOODS FOR INFRASTRUCTURE  DEVELOPMENT i.e CONSTRUCATION MATERIAL  ALLOWED BE IMPORTING  / PROCURING INDIGENOUSLY DUTY FREE.  

GOODS FOR INFRASTRUCTURE  DEVELOPMENT i.e CONSTRUCATION MATERIAL NOT ALLOWED BE IMPORTING  / PROCURING INDIGENOUSLY DUTY FREE.  

 

5

SERVICE TAX

SEZ UNITS / DEVELOPER EXEMPTED FROM PAYMENT OF SERVICE TAX.

EOU UNITS NOT EXEMPTED FROM PAYMENT OF SERVICE TAX  HOWEVER CENVAT CREDIT FACILITY IS ALLOWED FOR SERVICE TAX PAID &  SAD &  EDUCATION CESS ALSO EXEMPTED .

 

6

CENTRAL SALES TAX

CENTRAL SALES TAX IS EXEMPTED ON THE GOODS PROCURED INDIGENOUSLY.

NO CST EXEMPTION HOWEVER CST REIMBUTSEMENT TO BE CLAIMED FROM JURISDTIONAL DEVELOPMENT COMMISSIOENR  and in case OF DELAY ON THE CONCERNED AUTHORITY IS LIABILE TO PAY 6% INTEREST IN THE APPROVED 30 DAYS . 

 

7

DTA SALE

DTA (Domestic Tariff Area) Sale ALLOWED ON PAYMENT OF FULL CUSTOM DUTY AS APPLICABLE ON IMPORTED GOODS.

LIMITED DTA (Domestic Tariff Area) Sale up to 90% of FOB VALUE FOE EXPORTS PERMITTED ON PAYMENT OF CONCESSIONAL RATE OF DUTY.

 

8

TRADING UNIT

Trading Units are allowed to set up in SEZ

Trading Units are not allowed to set up in EOU

 

9

DOMESTIC PROCUREMENT

SUPPLY FROM DTA TO SEZ CONSIDERED AS EXPORTS

SUPPLY FROM DTA TO EOU CONSIDERED AS DEEMED  exports.

 

10

BENEFIT to  DTA SUPPLIER

SUPPLIES FROM DTA,  BENEFIT OF DEPB / DFRC/ADVANCE LICENCE AVAILABLE . 

SUPPLIES FROM DTA,  BENEFIT OF DEEMED EXPORTS DRAWBACK/ DFRC/ ADVANCE LICENCE /EPCG LICENCE/ REFUND OF Terminal excise DUTY AVAILABLE. 

 

11

INVESTMENT REQUIREMENT

No minimum Statutory investment limit prescribed.

Minimum investment limit is 100 lacs as on the date of commercial production

 

12

REALISATION OF EXPORT PROCEEDS

Within 12 months

Within 6 months

 

13

EXPORT INCENTIVE

ADVANCE LICENCE / EPCG LICENCE /DEEMED EXPORTS/ DUTY DRAWBACK  IS ELGIBLE.

No export incentives