Various issues of SEZ are still on air for further rectification by the govt. experts. According to the sources of www.propertykhazana.com recently RBI has proposed all the banks to deal with the SEZ structures as equal to the other commercial realty business. This process is sure to increase the costing of the SEZ amenities and hence will influence the future business attached to it.
But it is observed that the govt. is making an election issue of this large scale structures for their coming polling. A couple of months back Pranab Mukherjee – external affairs minister has called upon a closed door discussion with the Empowered Group of Ministers on the different issues related to the upcoming special economic zone as per the sources of www.propertykhazana.com . The major issues are the obligation of a minimum alternate tax (MAT) of around 10 per cent to SEZ units, elucidation of Section 10AA (7) of the Income Tax Act, exclusion of export charges on supply of steel related materials to SEZ sites, ease of use of central value-added tax (Cenvat) that will be credited to domestic producer on inputs used for finished products provided to SEZ realtors and lastly the controversy over the RBI’s statement about SEZs as real estate business and not infrastructure development.
Apart from this the ministry of commerce has sought interest at the amendment to the Section 10AA (7) of the IT Act where Special economic zone are supposed to get a 100 per cent tax benefits on sell abroad model. For more updates visit www.propertykhazana.com .
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