Applicability of wealth tax for units located in SEZ

[velayutham panchatcharam]

Please clarify with rule or section whether wealth tax is applicable for units located in SEZ

[Rama Krishana]

The assets which are in the nature of stock in trade or premises which are used for the purpose of business are excluded from the scope of asset u/s 2(ea) of wealth tax act, 1957. Moreover, the provisions of SEZ act also salient on this issue. Means thereby that wealth tax is applicable on every assessee whether situated in SEZ or not.

AI Summary

Wealth tax applicability for SEZ units: business assets excluded, but assessees located in SEZ remain liable to wealth tax. Stock in trade and premises used for business are excluded from the definition of assets under the Wealth Tax Act, and therefore are not subject to wealth tax; however, location in a Special Economic Zone does not by itself exempt an assessee from wealth tax, so SEZ units remain within the wealth tax framework except for assets that qualify for statutory exclusions.