TaxTMI 
TaxTMI 
Comparison of EOU and SEZ Schemes
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.... 50% exemption for five years and thereafter 50% exemption for five years in case of re-investment of profits in terms of section 10AA of Income Tax Act, 1961 inserted after section 10A as per the Second Schedule of the SEZ Act (read with section 27 of the SEZ Act, 2005). The units commencing operations before 1st April, 2005 shall be covered as per provision contained under section 10A of Income....
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....xempted from payment of service tax in respect of services consumed within the SEZ. Services used partially in the SEZ or used outside the SEZ as per notification issued by CBEC are allowed to be refunded EOUs not exempted from payment of service tax, however CENVAT credit is allowed for service tax paid. Post manufacture services which are not input services are allowed to be refunded as per not....
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....ed' exports. 8. Benefit to DTA supplier For supplies from DTA, benefit of DEPB/Advance authorisation available. The drawback/claim of rebate applicable as in case of physical export. For supplies from DTA, benefit of deemed export drawback/ Advance authorisation/ Refund of terminal excise duty available. 9. Cost recovery charges No cost recovery charges recoverable for the customs staff dep....
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....pplicable. 100% FDI investment permitted through automatic route for EOUs and formal FIPB approval not required. Formal FIPB approval required. Sector Specific guidelines are applicable. 12. Customs Documentation All import/export documentation and assessment formalities to be completed in the zone itself. All import/export documentation and assessment formalities to be completed at the respe....