TaxTMI 
TaxTMI 
TaxTMI 
Special Economic Zones - Guidelines for field formations - reg.
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....er Section 13 of the Special Economic Zones Act, 2005, was emphasised. 2. With the notification of more than 200 SEZs and the process of setting -up of these SEZs by Developers and of units by entrepreneurs having commenced, the role of Officers representing the Department of Revenue (DOR) in the meetings of these Approval Committees is now of utmost significance. The following guidelines are therefore issued with a view to help them in taking a proactive approach at the meetings of the Approval Committees for safeguarding the interest of Revenue. These guidelines are not exhaustive and the officers should familiarize themselves with the provisions of the SEZ Act, 2005, and the SEZ Rules, 2006, and the instructions issued by this Departme....
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....its beforehand and provide inputs like past history of any cases of violation of the Customs Act, Central Excise Act, etc. to the committee in order so as to enable the Committee to take a decision keeping in mind the track record of the entrepreneurs. 3. The Committee has powers to approve, modify or reject proposals for setting up units for manufacturing or rendering services in accordance with the provisions of sub-section 8 of Section 15 of the SEZ Act, 2005. While granting assent to the approval, the representatives of DOR should ensure whether the particular process to be carried out by the unit constitutes manufacture or not in terms of Section 2 (r) of the SEZ Act which is analogous to section 2(f) of the Central Excise Act. Simil....
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.... The nominee of the Department should therefore, carefully examine any proposal for allowing goods for authorised operations based on actual need and in accordance with the law. The DOC vide notification dated 16.03.2007 had amended Rule 11(10) of the SEZ Rules widening the scope of operations in the non-processing area enabling the developer to build infrastructure in the non-processing area in excess of the approval given by the BOA, provided no tax benefits have been availed on the excess infrastructure. On being objected by the DOR, the MOC vide instruction no. 8/07 dated 30.03.07 decided to keep it in abeyance till a final view is taken in the matter. Hence, in view of the amendment of Rule 11(10) being kept in abeyance no extra infr....
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.... this regard. 7. Wherever, the developers are proposing to create 2.4 meters high wall/chain linked fencing with 0.6 meters barbed wire fencing with single entry/exit points, as was provided in the SEZ Rules 2006 prior to amendment dated 15th March 2007, no separate approval of the BoA shall be required. 8. Only one entry/exit gate should be permitted in view of security and revenue loss concerns as well as paucity of Customs Staff for manning the gates unless more gates have been specifically permitted by the BoA. 9. The SEZ Act and Rules do not permit any exemption to services provided by a SEZ unit to any individual inside an SEZ as it does not get covered under the export of services. Similarly, regarding exemption of service tax ....
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..../specified officers and officers are rotated in due course. 6. It is requested that these guidelines may be conveyed to the Commissioners in whose jurisdictions such SEZs are located. (M. Vinod Kumar) Addl. Director General (EP) ANNEXURE A AUTHORIZED ACTIVITIES WHICH CAN BE UNDERTAKEN BY THE DEVELOPER/APPROVED CO- DEVELOER BY DEFAULT FROM THE DATE OF NOTIFICATION Information Technology/Information Technology Enabled Services, Bio-technology and Gems and Jewellery Special Economic Zone: Roads with Street lighting, Signals and Signage Water treatment plant, water supply lines (dedicated lines up to source), sewage lines, storm water drains and water channels of appropriate capacity. Sewage and garbage disposal plant, pipeline....