9.29A

(a) Units set up in EPZs will be charged rent for lease of industrial plots and standard design factory buildings/sheds as per rates fixed from time to time.

(b) Corporate tax: EOU/EPZ/EHTP/STP units engaged in manufacturing and services will be eligible for entitlements in respect of payment of income tax as per the provisions of Income Tax Act.

(c)FOB value of export of an EOU/EPZ/EHTP/STP units may be clubbed with FOB value of export of its parent company in the DTA or vice versa for the purpose of according Export House, Trading House, Star Trading House or Super Star Trading House status.

(Above bold para has been amended vide PN.No. 34(RE-01), Dt.31/8/2001)

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(c) FOB value of export of an EOU/EPZ/EHTP/STP unit can be clubbed with FOB value of export of its parent company in the DTA for the purpose of according Export House, Trading House, Star Trading House or Super Star Trading House status for the latter.]

(d)100% FDI in the manufacturing sector is permissible to EOU/EPZ/EHTP/STP units. For FDI in services and trading sector, the sectoral norms as notified by the Department of Industrial Policy and Promotion shall be applicable.

(Above bold para has been amended vide PN.No. 34(RE-01), Dt.31/8/2001)

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(d) 100% Foreign Equity: Foreign Equity upto 100% is permissible in the case of EOU/EPZ/EHTP/STP units.]

(e) Software units may, in addition, also be allowed to use the computer system for training purpose (including commercial training) subject to the condition that no computer terminal shall be installed outside the bonded premises for the purpose.

(f) Procurement of raw materials, components and consumables and export of finished products shall be exempt from Central levies.

(g) Exemption from industrial licensing for manufacture of items reserved for SSI sector.

(h) State Trading regime shall not apply to EOU/EPZ manufacturing units. Export of iron ore shall however be subject to the decision of the Government from time to time. Requirements of other conditions of exports like minimum export price/export in consumer pack etc. as per ITC(HS) shall apply in case the raw materials are sourced from DTA. Export of textile items shall be covered by bilateral agreements.