TaxTMI 
TaxTMI 
Amendment to SEZ Rules, 2006—Units proposing to procure Second Hand Capital Goods – Effect on the provisions of Income Tax – Section 10A and 80IA
X X X X Extracts X X X X
X X X X Extracts X X X X
....ment of India Ministry of Commerce & Industry Department of Commerce (SEZ Section) Udyog Bhavan, New Delhi Dated 12th October 2007 To The Development Commissioner SEZ & Chairperson, Approval Committee (All Special Economic Zones) Subject : Amendment to SEZ Rules, 2006—Units proposing to procure Second Hand Capital Goods -reg. Sir/Madam, As you are aware....
X X X X Extracts X X X X
X X X X Extracts X X X X
....or produce articles or things or provide services during the previous year relevant to the assessment year commencing on or after the 1st day of April, 2006 in any Special Economic Zone; (ii) it is not formed by the splitting up, or the reconstruction, of a business already in existence: Provided that this condition shall not apply in respect of any undertaking, being the Unit, which is form....
X X X X Extracts X X X X
X X X X Extracts X X X X
....side India by any person other than the assessee shall not be regarded as machinery or plant previously used for any purpose, if the following conditions are fulfilled, namely :— (a) such machinery or plant was not, at any time previous to the date of the installation by the assessee, used in India; (b) such machinery or plant is imported into India from any country outside India; and (....
X X X X Extracts X X X X
X X X X Extracts X X X X
....new sub-section (4) to Section 10AA were in conflict, vide SEZ(Second Amendment) Rules, 2007 dated 12th October, 2007, Rule 18(4)(g) has been deleted. 4. While adequate provisions exist in Section 10AA of the Income Tax Act, 1961 to deal with tax related issues in case of previously used Capital Goods, it is not intended that any shifting of existing businesses takes place to SEZs which would o....