TaxTMI 
TaxTMI 
I am working with an STPI unit and have recently started operations in SEZ unit. I belive that second hand capital goods can be transferred in SEZ unit under 80:20 ratio (new:used). However we do not get any tax exemption. Wish to know how this 80:20 formula works. What procedure / documentation is to be followed while transferrnig goods under 80:20 ratio and what types of accounts we need to maintain at unit when such used capital goods are transferred under this ratio.
SEZ Procedure
15 Feb 2012 
2 Replies 
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Guest 
Second-hand capital goods ratio treatment for SEZ transfers requires procedural verification and documentation before claiming any tax treatment.
Whether second hand capital goods may be transferred into an SEZ under an 80:20 new:used allocation, and what procedural, documentary and accounting steps and tax exemption consequences follow, is the primary issue. The forum replies state that one commentator sees no basis for the 80:20 formula in the SEZ Act and Rules, while another contends a procedure exists but must be carefully examined and verified. (AI Summary)
Whether second hand capital goods may be transferred into an SEZ under an 80:20 new:used allocation, and what procedural, documentary and accounting steps and tax exemption consequences follow, is the primary issue. The forum replies state that one commentator sees no basis for the 80:20 formula in the SEZ Act and Rules, while another contends a procedure exists but must be carefully examined and verified. (AI Summary)
