Ep zs, eous, tps & sezs 6

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  • What will be special about these zones is that they will be duty free, they will be almost tax free – almost 21 tax related legislations and policies have been amended to allow these sezs to come up, apart from this there will subsidies on stamp duties on land and water and electricity will also be subsidised The second important specialty is hassle free environment – reducing procedural requirement for clearances as well as allowing escape from some labour and environment related legislations which I will speak of later The area will be a foreign enclave and the provisions of the state and central sez rules and act will apply There are specifications as to how much area can be acquired by what kind of project but the multiproduct SEZs will have to acquire a minimum of 1000 ha of land and that’s a minimum. All specifications are about the minimum area that can be acquired And another special aspect is that a SEZ project or developer has to ensure that 25% of the area has industrial activity or units – the rest of the area is for other purposes – starting from shopping malls to golf courses and other entertainment as well as for housing The most special part is that all this is within a legislative framework
  • What will be special about these zones is that they will be duty free, they will be almost tax free – almost 21 tax related legislations and policies have been amended to allow these sezs to come up, apart from this there will subsidies on stamp duties on land and water and electricity will also be subsidised The second important specialty is hassle free environment – reducing procedural requirement for clearances as well as allowing escape from some labour and environment related legislations which I will speak of later The area will be a foreign enclave and the provisions of the state and central sez rules and act will apply There are specifications as to how much area can be acquired by what kind of project but the multiproduct SEZs will have to acquire a minimum of 1000 ha of land and that’s a minimum. All specifications are about the minimum area that can be acquired And another special aspect is that a SEZ project or developer has to ensure that 25% of the area has industrial activity or units – the rest of the area is for other purposes – starting from shopping malls to golf courses and other entertainment as well as for housing The most special part is that all this is within a legislative framework

Transcript

  • 1. EPZs, EOUs, TPs & SEZs By Prof. Neha Patel (c) Prof. Neha Patel,GLS MBA Programs
  • 2. Export Processing Zones (EPZs)
    • Industrial estates which form enclaves of national territory
      • Are usually near port
    • The entire production of this zone is exported
    • Tax incentives available
    • Speedy import and export transactions
    • Govt. has permitted development of EPZ by private sector, State, or joint
    (c) Prof. Neha Patel,GLS MBA Programs
  • 3. Other Zones
    • EPIP – Export promotion Industrial Park Scene
    • EOU – Export Oriented Unit
    (c) Prof. Neha Patel,GLS MBA Programs
  • 4. EPZ in India
    • Kandla Free Trade Zone, Gujarat
    • Santa Cruz Electronic Export Processing Zone (SEEPZ), Mumbai
    • Noida Export Processing Zone, UP
    • Madras Export Processing Zones, Chennai
    • Cochin Export Processing Zone, Kerala
    • Falta Export Processing Zone, West Bengal
    • Visakhapatnam Export Processing Zone
    (c) Prof. Neha Patel,GLS MBA Programs
  • 5. Contribution of EPZs to Industrial growth/ diversification : A qualitative analysis (c) Prof. Neha Patel,GLS MBA Programs
    • At the sector level
    • Contribution to technology transfer &spill over's
    • Development of Local entrepreneurship : Gems and Jewellery, Electronics, SW, rubber gloves
    • Regional development
    • Contribution to employment,
    • Income generation
    • Ancillary industrial activities
    • Most notable : Kandla, Noida
    National Contribution to exports, employment
  • 6. Export Oriented Units [EOUs]
    • Units undertaking to export their entire production of goods and services
      • Except permissible sales in Domestic Tariff Area (DTA)
    • Electronic Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) or Bio-Technology Parks (BTPs)
      • Also covered under EOU scheme.
      • These are product specific units availing the same benefits as EOUs.
    • EOUs are allowed to manufacture goods including
      • repair, re-making, reconditioning, reengineering, and rendering of services wherever applicable.
    (c) Prof. Neha Patel,GLS MBA Programs
  • 7. Software Technology Parks in India (STPI)
    • Setup in 1991 as an autonomous organization under Ministry of Information Technology
    • Aim: To promote software Exports by acting as ONE STOP SHOP by:
      • Creating an enabling environment for healthy IT exports nationwide
      • Strengthening Technical Infrastructure
      • Providing Single window clearance to software exporters
      • Shift towards OFF SHORE model of software development work
    (c) Prof. Neha Patel,GLS MBA Programs
  • 8.
    • STP Scheme is being operated by the technical body
    • Investment Approvals decentralized
    • Most of the authoritaties are sub-Delegated to the Directors of the STPI Centers
      • Result Decentralized Single Window
    STPI Differentiators (c) Prof. Neha Patel,GLS MBA Programs
  • 9.
    • Benefits
    • Complete duty free import
    • 100% foreign equity permitted
    • No corporate income tax till 2010
    • Dedicated Data Communication links
    • Single window Government clearance
    • Custom bonding and export certification provided at single point.
    What is STP Scheme? (c) Prof. Neha Patel,GLS MBA Programs
  • 10. STPI: Key Areas of Contribution Growth of IT Exports from the nation Dispersal of Industry to Tertiary Cities Contribution to SME Enablement Enhanced Employment Generation Nationwide (c) Prof. Neha Patel,GLS MBA Programs
  • 11. Catalyst of Regional Development Overall Regional Development Nucleating effect on Employment generation Secondary Industries coming up Improvement in Basic and Social Infrastructure (c) Prof. Neha Patel,GLS MBA Programs
  • 12. STPI Centers: Nationwide spread 1991 1995 After IT Taskforce
    • Bangalore
    • NOIDA
    • Pune
    • Hyderabad
    • Trivandram
    • Ghandinagar
    • Bhubaneshwar
    • Mohali
    • Jaipur
    • Mumbai
    • Aurangabad
    • Bhilai
    • Chennai
    • Coimbatore
    • Dehradun
    • Guwahati
    • Hubli
    • Indore
    • Kanpur
    • Kolkatta
    • Lucknow
    • Nasik
    • Allahabad
    • Jodhpur
    • Jammu
    • Hubli
    • Mangalore
    • Manipal
    • Madurai
    • Mysore
    • Nagpur
    • Pondicherry
    • Pune
    • Rourkela
    • Srinagar
    • Shimla
    • Thirupati
    • Trichy
    • Vijayawada
    • Vizag
    • Warangal
    • Tirunaveli
    (c) Prof. Neha Patel,GLS MBA Programs
  • 13. SEZ – Special Economic Zone
    • It is specifically delineated duty free enclave
    • Shall be deemed to be foreign territory
    • Goods going into SEZ shall be treated as Deemed exports
    • Goods coming from SEZ into DTA (domestic tariff area) shall be treated as being imported
    • Existing EPZ may also be converted into SEZ by Ministry of Commerce
    (c) Prof. Neha Patel,GLS MBA Programs
  • 14. What is special?
    • Duty-free!
      • Exemption from taxes, various subsidies and tax sops
    • Hassle-free!
      • Exemption from stringent labor and environment regulations
    • Foreign enclave!
      • A designated duty free enclave and to be treated as foreign territory for trade operations and duties and tariffs
    • Single Window Clearance!
    • No license required for import
    • Only 25% of the area for industrial activity –
      • the rest of the area for entertainment and residential as well as other commercial activities!
    (c) Prof. Neha Patel,GLS MBA Programs
  • 15. What is special?
    • No fixed wastage norms
    • Full freedom for subcontracting including subcontracting abroad
    • Job work on behalf of domestic exporters for direct exports allowed
    • Contract farming allowed for agriculture/ horticulture units
    • No routine examination by Customs of export & import cargo
    • In house customs Clearance
    (c) Prof. Neha Patel,GLS MBA Programs
  • 16. SEZ Framework Preferential Policy Framework Hassle Free Operating Environment Integrated Infrastructure Fiscal incentives & regulatory benefits Thrust on self-certification & in-zone empowerment Self-contained & Self-managed SEZ (c) Prof. Neha Patel,GLS MBA Programs
  • 17. Fiscal Benefits available to SEZ Cenvat Customs VAT Income Tax Service Tax Central Sales tax Securities Transaction Tax Exemptions of tax, duties or cess in 21 Acts Stamp Duty FEMA Other Acts (c) Prof. Neha Patel,GLS MBA Programs
  • 18. (c) Prof. Neha Patel,GLS MBA Programs