Income tax exemption differs for SEZ and EOU units, shaping fiscal incentives and reinvestment conditions under each scheme.

Comparison explains divergent fiscal and procedural regimes for SEZ and EOU schemes: SEZs provide statutory block income tax exemptions and reinvestment relief, duty free import of construction material, in zone import/export processing, service tax exemption/refund for in zone services, CST exemption on indigenous procurement, no routine customs examination, and no private bonded warehouse requirement. EOUs received earlier time bound tax exemptions, lack comparable duty free construction material and broad service tax exemption (but may claim CENVAT/refunds), complete customs formalities at ports and face routine examination, warehousing and merchant overtime cost obligations.

---

---

---