NBR Developers
  • more-arrow-down
    • Please wait while loading other cities loading...

Companies get nod to expand SEZ operations into other zone

  • No. 1 Property Portal in India
  • Over 25 Lakhs Apartments and More
  • Post Free Residential Properties in India
  • Find Property in Bangalore
  • Buy/Sell/Rent Apartments in India
  • Search Latest Residential Property in India
  • Get Free Alerts on Property Requirements
  • Find Agents/Buyers for your Property
The Union government has allowed companies having operations in one special economic zone (SEZ) to expand operations into another one seamlessly, making these exports enclaves more attractive for investors. The SEZ policy is not clear on the expansion aspect. Hence the companies sought permission of the Board of Approval (BoA) if they wanted to set up a unit in another zone, which effectively meant a full-fledged new application. Companies can expand into another SEZ, but as a new unit and get tax benefit for the unexpired period. Sony India Software Centre, a unit in Vrindavan Tech Village SEZ, Bangalore had sought an approval to expand its production capacity into another SEZ in the nearby RMZ Ecoworld Infrastructure SEZ. The 19-member Board of Approval, headed by the commerce secretary, in its meeting on June 12 allowed Sony to expand as a fresh unit. It would have to apply for a fresh license, but the income tax benefits will only be applicable to the unexpired period, which is 7 years in this particular case. In future, companies needn't seek BoA nod to extend operations to another SEZ, a commerce department official told ET.
The policy does not allow shifting of business from domestic tarrif areas (non SEZS) to SEZs, which baffled companies over SEZ to SEZ expansion as well. "Sony was a bit apprehensive about the transfer, but in the BoA we have assured them that they can go ahead. Ultimately we need investments, so you need to ensure smooth operations for companies and not work in a straitjacket manner", said a commerce ministry official. Sony was expanding operations, but the present SEZ did not allow them do to do so, given the limited space. The official has said, that is will not be a special case, and in future companies may not even need to seek nod to expand. "In case something like this comes up again in the board of approval meeting, we will clarify that one needn't take permission to expand to another SEZ as a new unit, as it will be in accordance to the policy, the official told ET. For Sony to expand to another SEZ will also require transferring employees from the existing unit. BoA, however, observed that the "apprehensions regarding the treatment of the issue of movement of employees / contracts from its existing unit in one SEZ to the proposed new unit in the other SEZ for the purposes of exemption under Section 10AA of I-T Act need to be suitably addressed by the department of revenue in the given legal framework", the minutes of the BOA meeting said. However, PC Nambiar, chairman of the Export Promotion Council of EOUs and SEZs, said that there was no need for Sony to go for expansion but it could have very well set up a separate unit in the new SEZ and enjoyed tax benefits for the entire 15 years. In another case, Oil and Natural Gas Corp (ONGC) got permission to carry out drilling/ exploration activities in the Sterling SEZ and Infrastructure Limited at Vadodara, Gujarat, as a special case keeping in mind the national importance of the activities. Easing of SEZ norms last month, failed to impress developers, as 5 SEZs got de-notified in the the same meeting, including that of Parsvnath developers and Reliance in Gurgaon. "Some states like Haryana have announced schemes providing higher incentives compared to the SEZ policy, so obviously, the developers would like to avail it," the official said.
Source: Economic Times

Property Listings

Apartments, Flats and Property for Sale in Bangalore

Jun 09, 2017
BREN brings to you unparalleled comfort combined with a lifestyle that embraces modern trends while providing a quality experience. Total Plot..
Jun 09, 2017
Finding a new and never-before living experience has never been so easy. Sri Guru BR Elite presents an expansive array of living options at one of..
Jun 08, 2017
Bren Woods is located in Bangalore and comprises of thoughtfully built Residential Apartments. The project is located at a prime address in the..
Jun 06, 2017
Shriram Summitt, set on 15 acres, offers 1, 2 & 3 BHK units in various sizes. 1 BHK units range from 720 to 780 sq.ft, 2 BHK units from..
Jun 05, 2017
Greetings from the “SHIVA SKANDA RESIDENCY ”!!! Introducing '' SHIVA SKANDA RESIDENCY '' BBMP approved well planned 2&3..
Jun 05, 2017
Vaishnavi Builders, you experience the magic of spaces designed holistically. Each and every element exemplifies a profound understanding of your..
Jun 04, 2017
Greetings from the Grand Gandhrava Apartments Grand Gandharva Luxurues 2 & 3 Bedroom Builder floor Apartments. Located Next to Gopalan..
Jun 04, 2017
Greetings from the Grand Gandhrava Apartments Grand Gandharva Luxurues 2 & 3 Bedroom Builder floor Apartments. Located Next to..
Jun 04, 2017
Discover the Joy of Living in an Environment that’s Sustainable for Ever A Star is Born - Welcome to the Asset Northern Star! Presenting..

Apartments, Flats and Property for Rent in Bangalore

May 16, 2017
Spread over 6.9 acres of land and comprising of 3 Blocks, SOBHA CLASSIC is strategically located off Sarjapur Road, Bangalore and offers close..
May 15, 2017
Flat for rent in Haralur Road near Kudlu(AECS Layout). East facing 2BHK (1235sq.ft) flat for rent. It is situated on the main road(Haralur Road)..
Apr 23, 2017
As my office is far from Flat, planning to..
Apr 21, 2017
New Era Luxury Hostels for Girls , accommodation for every budget • Brand New building • Spacious and well ventilated..
Apr 19, 2017
2BHK apt for rent, ground floor, car parking, power backup, arkere BPL bus stop, next to Mitra Academy school, Bannerghatta main road, available..
Mar 31, 2017
LEASE OR RENT Near Manyath tech park brand new 2b/r multistory apartment with swimming pool, gym party hall, power backup, car..
Dec 23, 2016
Dec 04, 2016
A safe secure society of defence officers, with clean air and environment. With facilities like, gym, pool, ATM, parking, etc near the..
Sep 30, 2016
Rent - 2 BHK Flat In Kaggadasapura. Available 2 BHK Flat for Rent in..
Sep 30, 2016
Rent - 2 BHK Flat In Kaggadasapura. Available 2 BHK Flat for Rent in..