SEZ and EOU |
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S.NO. |
Points |
SEZ |
EOU |
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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 . |
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2 |
UNIT |
SEZ unit has to be new Unit, no conversion of old unit is allowed |
Running DTA unit can be converted into EOU |
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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. |
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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. |
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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 . |
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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 . |
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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. |
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8 |
TRADING UNIT |
Trading Units are allowed to set up in SEZ |
Trading Units are not allowed to set up in EOU |
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9 |
DOMESTIC PROCUREMENT |
SUPPLY FROM DTA TO SEZ CONSIDERED AS EXPORTS |
SUPPLY FROM DTA TO EOU CONSIDERED AS DEEMED exports. |
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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. |
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11 |
INVESTMENT REQUIREMENT |
No minimum Statutory investment limit prescribed. |
Minimum investment limit is 100 lacs as on the date of commercial production |
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12 |
REALISATION OF EXPORT PROCEEDS |
Within 12 months |
Within 6 months |
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13 |
EXPORT INCENTIVE |
ADVANCE LICENCE / EPCG LICENCE /DEEMED EXPORTS/ DUTY DRAWBACK IS ELGIBLE. |
No export incentives |