TaxTMI 
TaxTMI 
TaxTMI 
Minutes of the 50th meeting of the SEZ Board of Approval held on 24thJanuary 2012 to consider proposals for setting up Special Economic Zones and other miscellaneous proposals
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....as been generated in the SEZs. During the financial year 2010-11, total exports to the tune of Rs. 3,15,867.85 crores have been made from the SEZs, registering a growth of about 43.11% over the exports for the year 2009-10. Exports in the current financial year (i.e. up to 31.12.2011) have been to the tune of Rs. 2,60,972.89 crores. Item No. 50.1: Proposals for setting up of SEZs. (i) Proposal of M/s. Tata Consultancy Services Limited, for setting up of a sector specific Special Economic Zone for IT&ITES/BPO/KPO at Indore, Madhya Pradesh, over an area of 40.469 hectares. The Board noted that the Developer was in possession of the land. The Government of Madhya Pradesh had also recommended the proposal for formal approval vide their letter dated 31.12.2011. Accordingly, the Board decided to grant formal approval to the proposal of M/s. Tata Consultancy Services Limited, for setting up of a sector specific Special Economic Zone for IT&ITES/BPO/KPO at Indore, Madhya Pradesh, over an area of 40.469 hectares. (ii) Proposal of M/s. Cochin Port Trust, for setting up of Free Trade Warehousing Zone (FTWZ) at Southern end of Willingdon Island, Survey No. 2578/4, 1166, Thoppumpady Ramesar....
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.... of State Government's recommendation. Item No.50.2: Request for co-developer All BoA sanctioned approvals to co-developers are subject to the condition that particular terms and conditions of lease agreement/co-developer agreement will not have any bearing on the treatment of the income by way of lease rentals/down payment/premium etc., for the purposes of assessment under the prevalent Income Tax Act and Rules. The Assessing Officer, will have the right to examine the taxability of these amounts under the SEZ Act and Income Tax Act as applicable. This is applicable to all the cases of co-developers approved by the BoA in this meeting. The Board further directed that proposals for grant of codeveloper status should be accompanied by lease deed/draft lease deed which must inter-alia contain the details of financial transactions/arrangements between developer and proposed co-developer. The decisions of the proposals are as under:- (i) Request of M/s. Air Liquide India Holding Private Limited for co-developer in the sector specific SEZ for Solar at village Mahroomkurd and Chawardhal District, being developed by M/s. Lanco Solar Private Limited After deliberations, the Board appro....
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....ation, over an area of 1 acre, in accordance with the codeveloper agreement entered into with the developer. (v) Request of M/s. Virtus IT Services Private Limited for co-developer in the sector specific SEZ for IT/ITES at Attipra, Taluk and District Thiruvananthapuram, Kerala, being developed by M/s. Electronics Technology Parks - Kerala The representative of CBDT pointed out that the lease agreement had been signed well before the co-developer agreement. A report in this regard was sought from the DC CSEZ. The proposal was, therefore, deferred. (vi) Request of M/s. Cyber Parks, Kozhikode for co-developer in the sector specific SEZ for IT/ITES at Kozhikode District, Kerala, being developed by Kerala State Information Technology Infrastructure Limited After deliberations, the Board approved the request of M/s. Cyber Parks, Kozhikode for becoming a co-developer in the above mentioned SEZ, for development of IT infrastructure, over an area of 4.3 acres, in accordance with the co-developer agreement entered into with the developer. (vii) Request of M/s. Adani International Container Terminal Private Limited (AICTPL) for becoming a co-developer in the Multi Product SEZ at Kutch, G....
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....xtile Park Private Limited for co-developer in the multi product SEZ at Taluka Khed & Shirur, District Pune, Maharashtra being developed by M/s. Khed Economic Infrastructure Private Limited (x) Request of M/s. Chella Software (P) Limited for co-developer in the sector specific SEZ for IT/ITES at llandhaikulam village, Madurai, Tamil Nadu being developed by Electronics Corporation of Tamil Nadu Limited (ELCOT) The representative of CBDT pointed out that they were not in receipt of the lease agreement proposed to be entered into by the Developer and co-developer, which is necessary for examining the financials of the proposal. The proposal was, therefore, deferred and the respective DCs were directed to provide copy of the lease agreement to DoC. The Board further directed that all proposals for grant of co-developer status should be accompanied by lease deed/draft lease deed which must inter-alia contain the details of financial transactions/arrangements between developer and proposed co-developer. Item No. 50.3: Requests for Authorized operations. (i) Request of M/s. Mundra LNG Limited, for authorized operations as a codeveloper in the Multi Product SEZ at Kutch, Gujarat, being....
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....ector specific SEZ for IT/ITES at Bondsi, Tehsil, Sohna, District Gurgaon, Haryana, beyond 5th November 2011 The Board noted that the Development Commissioner has not recommended grant of further extension to the project as the developer has not taken any concrete steps towards implementation of the project after notification. The Board, after deliberations, rejected the request for further extension beyond 5th November, 2011. (v) Request of M/s. Ganesh Housing Corporation Limited for third extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at village Chharodi and Tragad, Taluka Dascroi and City, District Ahmedabad, Gujarat, beyond 19th December 2011 The Board after deliberations extended the validity of the formal approval up to 19th December 2012. Item No.50.5: Delayed requests for extension of validity of formal approvals (i) Request of M/s. Parsvnath SEZ Limited for extension of the validity period of formal approval, granted for setting up of sector specific SEZ for IT/ITES at Sahastra Dhara Road, Dehradun, Uttarakhand beyond 24th October 2010. The Board noted that the Development Commissioner has not recommende....
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..... 50.8: Request for extension of in-principle approval beyond fifth year. (i) Request of M/s. Bengal SREI Infrastructure Development Limited for extension of the validity of in-principle approval, granted for setting up of sector specific SEZ for Auto Components at Kharagpur, West Bengal, over an area of 200 Ha, beyond 21st June, 2011. The Board taking note of the recommendation of the Government of West Bengal extended the validity of the in-principle for a period of one year from the expiry of the validity of the last extension (i.e. up to 21st June, 2012). The Board, however, directed that the developer must apply for formal approval within the extended validity, as the validity of the in-principle approval would not be extended any further. Item No. 50.9: Requests for increase/decrease in area (i) Request of M/s. Karle Infra Project Private Limited for increase as well as decrease in area of the sector specific SEZ for IT/ITES/BPO SEZ at Nagavara village, Bangalore North Taluk, Karnataka After deliberation, the Board decided to approve the request of M/s. Karle Infra Project Private Limited for addition as well as de-notification of an equal area of 6.187 hectares, resulti....
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....ty & Infrastructure Limited for withdrawal of formal approval granted to them for setting up of sector specific SEZ for IT/ITES at Dabgram, Jalpaiguri, West Bengal, over an area of 10 hectares, subject to DC's certificate that the developer has not availed of any tax/duty benefits under the SEZ Act/Rules or have the same been refunded, as the case may be. Item No. 50.13: Requests for withdrawal of co-developer status (i) Request of M/s. DLF Assets Private Limited for withdrawal of co-developer status granted for developing setting up of sector specific SEZ for IT/ITES at Pune, Maharashtra being developed by M/s. DLF Ackruti Info Parks (Pune) Limited (ii) Request of M/s. DLF Utilities Limited for withdrawal of co-developer status granted for developing setting up of sector specific SEZ for IT/ITES at Pune, Maharashtra being developed by M/s. DLF Ackruti Info Parks (Pune) Limited The Board was informed that the 100% equity of the former developer viz M/s. DLF Ackruti Info Parks (Pune) Limited has been transferred to M/s. BRE/Mauritius Investments II with the approval of BoA. Representative of CBDT pointed out that since the co-developer status was accorded through a legal documen....
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....nted for changing the sector of the SEZ to "Engineering and related industries". (iii) Request of Kinfra Industrial Infrastructure Development Corporation for change of sector of the notified sector specific SEZ at Trivandrum, Kerala from "IT (Animation and Gaming)" to "IT/ITES" After deliberations, the Board decided to approve the request of Kinfra Industrial Infrastructure Development Corporation for changing the sector of the SEZ from 'IT (Animation and Gaming)' to 'IT/ITES'. Item No. 50.15: Requests for extension of LoP of units beyond 3rd and 4th year (i) Request of M/s. Embedded IT Solutions (India) Private Limited, a unit in the sector specific SEZ for Semiconductors at Raviryala village, MaheswaramMandal, Ranga Reddy District, Andhra Pradesh being developed by M/s. FAB City SPV (India) Private Limited, SEZ, for extension of Letter of Permission (LOP) beyond 22nd December, 2011 The Board, after deliberations, extended the LoP of the unit for period of one year from the date of expiry of the validity of the last extension (i.e. up to 22nd December, 2012) (ii) Request of M/s. Kumar Organic Products Limited, a unit in KIADB (Pharma) SEZ, Hassan, Karnataka for extension of....
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.... Sandal Musical Instruments Exports for setting up units in VSEZ. Accordingly, the requests were rejected. Item No. 50.19: Request of Ms. SIMS Recycling Solutions India, a unit in NSEZ SEZ for broad-banding of Letter of Approval Representative of the M/o Environment and Forests informed the Board that M/s SIMS Recycling Solutions have given an undertaking that they would extract metal from ewaste and would not carry out any DTA transactions. However, it was informed by DC (I/c), NSEZ that the said undertaking has not complied with the existing conditions of the LoP. The, Board, after deliberations directed the representative of the M/o E&F to provide all relevant documents/undertakings submitted by the unit, to NSEZ for further examination. Accordingly, the request was deferred. Item No. 50.20: Request of Ms. Elegant Collection, a unit in SEEPZ SEZ for merger of Letter of Approvals The Board after deliberations remanded the proposal back to UAC for its consideration and decision. Item No. 50.21: Request for transfer of unit from one SEZ to another (i) Request of M/s. Atos India Private Limited a unit in MWC-IT SEZ at Kancheepuram District, Tamil Nadu for shifting its locatio....
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....s developer:- S. No. Sector/Location Dated of notification Area (in hectares) 1. IT/ITES SEZ at Kancheepuram District, Tamil Nadu 11.08.2006 10.53 2. Textile SEZ at Uthukuli village, Erode District, Tamil Nadu 9.6.2008 103.6457 (iii) Request for transfer of the remaining 49% equity of M/s. Arun Excello Infrastructure Private Limited to M/s L&T Urban Infrastructure Limited (L&T UIL) The Board noted that in the BoA meeting held on 15.12.2009, approval was granted for divestment of 51% equity of the original developer to M/s L&T UIL and now M/s. ArunExcello (the original developer) has decided to exit this joint venture by selling the remaining 49% equity held by the company in the developer entity. The Board, after deliberation, approved the request of M/s. Arun Excello Infrastructure Private Limited for transferring the remaining 49% equity held by it to M/s L&T Urban Infrastructure Limited (L&T UIL). The Board further directed that full financial details relating to the transfer of equity shall be furnished immediately to the Member (IT) CBDT, Department of Revenue. It was also clarified that in such cases the assessing officer under the Income Tax Act, 1961, shall h....
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....e furnished immediately to the Member (IT) CBDT, Department of Revenue. It was also clarified that in such cases the assessing officer under the Income Tax Act, 1961, shall have the right to assess the taxability of the amount arising out of the transfer of equity. (vi) Request of M/s Cambridge Builders Private Limited (CBPL), a co-developer, for transfer of 100% of their shareholding to M/s. Xchanging Technology Services India Private Limited (XTSI) The Board was informed that the co-developer (a Xchanging Group Company) has now sought approval for transfer of 100% of their shareholding to M/s. Xchanging Technology Services India Private Limited (also a Xchanging Group Company) as part of internal re-organization within the Xchanging Group. The representative of CBDT requested that the financial details of the new arrangement between the group companies be made available for examination. Therefore, the proposal was deferred with the directions to DC, CSEZ to furnish the necessary details to CBDT. Item No. 50.24: Appeals before BoA (i) Appeal of M/s. Sun Aromatics against rejection of its request for setting up a unit, in NSEZ The appellant was granted personal hearing by the....
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....Deputy DGFT, Director General of Foreign Trade 9. Ms. Sharda Jain, Joint Secretary and Legislative Counsel, Ministry of Law & Justice, New Delhi 10. Shri Rakesh Sharma, Principal Secretary Industries, Government of Uttarakhand 11. Shri Shiwendra Singh, Secretary, APADA, Government of Jharkhand 12. Shri A.K. Gupta Chief General Manager, RIICO, Government of Rajasthan, Jaipur, Rajasthan 13. Shri B.K. Shiva Kumar, Department of Industries & Commerce, Government of Karnataka, Bangalore 14. Shri U.K.S. Chauhan, Resident Commissioner, Government of Kerala, New Delhi 15. Shri S.D. Sharma, Additional Resident Commissioner, Government of Uttarakhand 16. Shri O.P. Kapoor, Joint DG, EPCES 17. Dr. Saroj, Director, Ministry of Environment and Forests, Pariyavaran Bhavan, CGO Complex, New Delhi - 3. 18. Ms. Suchitra Sinha, Joint Director (Industry), Government of Jharkhand 19. Shri R.S. Rawal, L.O. (Industries) cum General Manager, TFAH, Haryana Bhawan, New Delhi c/o Director of Industries & Commerce, Haryana 20. Shri R.K. Sinha, Deputy Director, Office of Development Commissioner (MSME), Ministry of MSME. 21. Dr. Mangal Sain, General Manager (Industries), Noida, Uttar ....