Dual use of non-processing area of SEZs by SEZ entities, DTA entities allowed
Updated: Jan 10, 2015 04:37:17pm
New Delhi, Jan 10 (KNN) The Department of Commerce has allowed the dual use of non-processing area of Special Economic Zones (SEZs) by SEZ entities as well as Domestic Tariff Area (DTA) entities by amending the SEZ Rules of 2006.
“The Gazette notification dated January 2, 2015 is available at http://sezindia.gov.in/writereaddata/GeneralNotifications/Amendment%20rule.pdf.” an official release from the Ministry of Commerce and Industry said on January-9.
As per the amended rule with regard to bifurcation of non-processing area, “The non-processing area can be bifurcated into two parts, namely: Where the social or commercial infrastructure and other facilities are permitted to be used by both the Special Economic Zone and Domestic Tariff Area entities: No exemptions, concessions or drawback shall be admissible for creation of such infrastructure. The Customs duty, Central Excise duty, Service Tax, and such other Central levies and tax benefits already availed for creation of such infrastructure shall be refunded by the Developer in full, without interest.
However, in cases of short payment of the amount refundable to the Government on account of dual use permission, interest will have to be paid at the rate of fifteen per cent per annum from the day the said amount becomes payable to the date of actual payment. However, the utilisation of SEZ land will be subject to certain conditions.
In addition, the notification said that where the social or commercial infrastructure and other facilities are permitted to be used only by Special Economic Zone entities, this portion shall be bonded and physically segregated from the Domestic Tariff Area, non-processing area, specified and the processing area of the Special Economic Zone. The infrastructure, as may be approved by the Board, for this part of non processing area shall be eligible for exemptions, concessions and drawback.
Further, the Department of Commerce has provided norms with respect to areas to be earmarked for residential, commercial and other social facilities. (KNN/ES)
“The Gazette notification dated January 2, 2015 is available at http://sezindia.gov.in/writereaddata/GeneralNotifications/Amendment%20rule.pdf.” an official release from the Ministry of Commerce and Industry said on January-9.
As per the amended rule with regard to bifurcation of non-processing area, “The non-processing area can be bifurcated into two parts, namely: Where the social or commercial infrastructure and other facilities are permitted to be used by both the Special Economic Zone and Domestic Tariff Area entities: No exemptions, concessions or drawback shall be admissible for creation of such infrastructure. The Customs duty, Central Excise duty, Service Tax, and such other Central levies and tax benefits already availed for creation of such infrastructure shall be refunded by the Developer in full, without interest.
However, in cases of short payment of the amount refundable to the Government on account of dual use permission, interest will have to be paid at the rate of fifteen per cent per annum from the day the said amount becomes payable to the date of actual payment. However, the utilisation of SEZ land will be subject to certain conditions.
In addition, the notification said that where the social or commercial infrastructure and other facilities are permitted to be used only by Special Economic Zone entities, this portion shall be bonded and physically segregated from the Domestic Tariff Area, non-processing area, specified and the processing area of the Special Economic Zone. The infrastructure, as may be approved by the Board, for this part of non processing area shall be eligible for exemptions, concessions and drawback.
Further, the Department of Commerce has provided norms with respect to areas to be earmarked for residential, commercial and other social facilities. (KNN/ES)
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