7.11

(a) Units set up in SEZs 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: SEZ 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 SEZ unit can 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 ;

(d) Foreign Investment: Foreign Equity up to 100% is permissible for all manufacturing activities in Special Economic Zones (SEZs), except for the following activities:

i) arms and ammunition, explosives and allied items of defence equipment, defence aircraft and warships;

ii) atomic substances;

iii) narcotics and psychotropic substances and hazardous chemicals;

iv) distillation and brewing of alcoholic drinks; and

v) cigarettes/cigars and manufactured tobacco substitutes.

(e) Sectoral norms as notified by the Government shall apply to foreign investment in services and trading activities.

(f) SEZ units may retain 100% of their export proceeds in their EEFC account.

(g) Export value of goods and software by SEZ units may be realized and repatriated to India within 12 months from the date of export or within the time extended by Reserve Bank of India.

(h) 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 Zone premises for the purpose.

(i) Procurement of raw materials and export of finished products shall be exempt from Central levies.

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

(k) State Trading Enterprises Policy shall not apply to SEZ manufacturing units. Export of iron ore shall however be subject to the decision of the Government from time to time. Requirements of other conditions like minimum export price/export in consumer pack as per Exim Policy shall apply in case the raw materials are indigenous. Export of textile items shall be covered by bilateral agreements, if any. Wood based units shall comply with the direction of Hon’ble Supreme Court contained in its order dated 12.12.1996 in Writ (civil) No, 202 of 1995- T.N.Godavarman Thirrumulkpad v/s Union of India and others with WP(Civil) no 171 of 1996 in regard to use of timber/other wood.

(l) SEZ unit may install one fax machine at a place of its choice, outside the Zone, subject to intimation of its location to the concerned Customs/Central Excise authorities.

(m) SEZ units may, temporarily take out of the Zone duty free laptop computers and video projection systems for working upon by persons authorised by unit.

(n) SEZ units may install personal computers not exceeding two in number imported/ procured duty free in the registered/administrative office subject to the guidelines issued by Department of Revenue in this behalf.

(o) For IT and IT enabled services, persons authorized by the software units may access the facility installed in the SEZ unit through communication links.