TaxTMI 
TaxTMI 
Minutes of the 69th meeting of the Board of Approval for SEZs held on 23rd February 2016 to consider proposals for setting up Special Economic Zones and other miscellaneous proposals
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....dity of the formal approval up to 31st December, 2016. (ii) Request of M/s. Indus Gene Expression Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotech and related activities at Kodur and Settipalli villages, Chilamathur Mandal, Anantapur District, Andhra Pradesh, beyond 13th February, 2016 The Board, after deliberations, extended the validity of the formal approval up to 13th February, 2017. (iii) Request of M/s. Gopalpur Special Economic Zone Ltd. for further extension of validity period of its formal approval for setting up a multi product SEZ at Gopalpur, District Ganjam, Odisha beyond 17th December, 2015 The Resident Commissioner, Odisha Government clarified that the State Government has already registered 500 Ha. of land in favour of Tata Steel SEZ Ltd. and State Government is committed to register the balance 673 Ha. of land in favour of Tata Steel SEZ Ltd. The BOA directed DC Falta SEZ to coordinate with the State Government in this regard. Further, Board of Approval agreed to extend the formal approval of M/s. Gopalpur Special Economic Zone Ltd. up to 1....
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....n all other cases the lease period will continue to be a period not exceeding 30 years (Renewable). Approval of proposals for Co-developer All approvals for 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 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 and Rules. This is applicable to all cases of co-developers approved by the BoA in this meeting. The decisions of the BoA on the proposals listed in the agenda are as under.-- (i) Request of M/s. HCL Technologies Limited for co-developer in the sector specific SEZ for IT/ITES at Madurai Ilandaikulam, Tamil Nadu, being developed by M/s. Electronics Corporation of Tamil Nadu Limited After deliberations, the Board approved the proposal of M/s. HCL Technologies Limited for co-developer to develop operate and maintain IT/ITES to provide for 24 hrs uninterrupted power supply, central air conditioni....
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....road banded IT/ITES/Electronic Components & Hardware manufacturing sector specific SEZ and (iii) Handicraft broad-banded with engineering sector SEZ. (ii) Request of M/s. Adani Ports & SEZ Ltd. developer for clubbing of three notified SEZs in Mundra, Kutch, Gujarat. After deliberations, the Board approved the proposal of M/s. Adani Ports & SEZ Limited for clubbing of APSEZL-I (Multi product) and APSEZL-II (FTWZ) with APSEZLIII (Multi product) subject to contiguity being maintained. The Board also directed DC, APSEZ to carry out fresh demarcation of processing and non-processing area. (iii) Request of M/s. Telangana Industrial Infrastructure Corporation Limited (TSIIC), developer of sector specific SEZ for Biotechnology at Lalgadi Malakpet Village, Shameerpet Mandal, Ranga Reddy District, Telangana for increase in area of its SEZ The Board, after deliberations, approved the request of M/s. Telangana Industrial Infrastructure Corporation Limited (TSIIC) for addition of an area of 2.136 hectares, increasing the total area of the SEZ to 22.576 hectares, subject to contiguity of the land in the SEZ being maintained. Item No. 69.6 : Appe....
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....G Terminal Pvt. Ltd. for co-developer status in the multi-product SEZ at Mundra, Kutch, Gujarat, being developed by M/s. Adani Port and Special Economic Zone Ltd. along with specific authorized operations (iii) Request of M/s. Adani CMA Mundra Terminal Pvt. Ltd. for co-developer in the multi-product SEZ at Mundra, Kutch, Gujarat, being developed by M/s. Adani Port and Special Economic Zone Ltd along with specific authorized operations The Board considered the above three proposals in detail. The Board took into account the following facts: (i) Section 2(p) of the SEZ Act, 2005 provides that "infrastructure facilities" means industrial, commercial or social infrastructure or other facilities necessary for the development of a Special Economic Zone. (ii) Rule 2(1)(s) of the SEZ Rules, 2006 provides that "infrastructure" means facilities needed for development, operation and maintenance of a Special Economic Zone. (iii) The Department of Revenue has informed that in case of APSEZ, the SEZ bound cargo was only 5.74% of the total cargo handled by the Port in the existing two container terminals ....
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....hich are necessary for the development of the SEZ." 2. In view of the above stated facts, BoA decided as follows: (i) BoA does not approve all these three proposals of Co-Developers. (ii) Since these additional facilities are not needed and not necessary for the SEZ, these facilities cannot be developed by the Developer as well and accordingly, no duty free benefits on CAPEX as well as O&M will be admissible. (iii) In the event the Developer wants to develop these facilities without taking any duty free benefits and without taking income-tax benefits, as admissible under the SEZ Act, it shall be free to do so. (iv) Request of M/s. Wockhardt Ltd. a co-developer in the sector specific SEZ for Pharmaceuticals at Shendre, Aurangabad District, Maharashtra, being developed by M/s. Wockhardt Infrastructure Development Ltd. for expansion of scope of existing activity After deliberations, the Board approved the proposal of M/s. Wockhardt Ltd. for expansion of scope of existing activity, in accordance with the co-developer agreement entered into with the developer subject to standard tenors and conditions as per SEZ Act ....
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....ectares. The Board noted that the Developer is in possession of the land. The Government of Punjab had also recommended the proposal vide their letter dated 11.07.2014. Accordingly, the Board decided to grant formal approval to the proposal of M/s. Infosys Limited, for setting up of a sector specific Special Economic Zone for IT/ITES at Plot No. 1-3, IT City, Sector 83, Alpha, SAS Nagar, Mohali, over an area of 20.234 hectares. Item No. 69.11 : Miscellaneous Cases (i) Request of M/s. Tech Mahindra Limited (formerly M/s. Satyam Computer Services Limited), a co-developer in the sector specific SEZ for IT/ITES at Kancheepuram, Chennai, Tamil Nadu, being developed by Electronic Corporation of Tamil Nadu Limited (ELCOT) for authorized operations. The Board, after deliberations, approved the following authorized activities of the co-developer subject to the condition that the facility developed would be deemed to be non-processing area and also that no O&M benefits would be available for the same. S. No. Name of the activity No. of units Area per unit (in sqm) as per FSI /FAR norms as applicable Total area (in sqm....
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....ment of Revenue and to the jurisdictional Authority. (v) The Assessing Officer shall have the right to assess the taxability of the gain/loss arising out of the transfer of equity or merger, demerger, amalgamation, transfer and ownerships etc. as may be applicable and eligibility for deduction under relevant sections of the Income Tax Act, 1961. (vi) The applicant shall comply with relevant State Government laws, including those relating to lease of land, as applicable. (vii) The developer shall furnish details of PAN and jurisdictional assessing officer of the developer to CBDT. (v) Proposal of M/s Plastic Processors & Exporters Pvt. Ltd. for reconsideration of request for extension of LoA. After deliberations, in view of the provisions of Rule 18(4) of the SEZ Rules, the Board granted approval for revival and renewal of LoP of M/s. Plastic Processors & Exporters Pvt. Ltd. a unit in NSEZ dealing in business of recycling of plastic in SEZ for a period of five years, beyond 30.11.2013 subject to the conditions:- (i) That they will pay rental arrears till date with intere....
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....are not opting out/ exiting out of the SEZ scheme. With a view to promote the ease of doing business in India and that restructuring of entity/ business is a fairly common occurrence, BOA decided that provisions of Rule 74A shall not apply to SEZ Units that do not exit or opt out of the SEZ Scheme by transferring its assets and liabilities to another person and the SEZ Unit continues to operate as a going concern in the situations mentioned above. The UACs concerned, may consider such requests under Rule 19(2) of the SEZ Rules, 2006. In so far as Business Transfer Agreement is concerned, it was explained that certain acquisitions happen globally as a result of Business Transfer Agreement which result in transfer of the SEZ unit of the Indian company on a going concern basis to the acquirer. The BOA decided that such cases resulting in change of ownership would be decided on merits by the Board of Approvals on a case to case basis. Item No. 69.12 : Appeals before BoA (i) Appeal of M/s. Regal Jewellery Mfg. Co., a unit in NSEZ against order dated 18^th January, 2016 passed by UAC, NSEZ. The Board heard the Appellant who informed that he was paying lea....
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.... of India 7. Shri Krishna Mohan Arya, Assistant Legal Adviser M/o Law & Justice Department of Legal Affairs. 8. Shri A.K. Misra, Research Assistant TCPO, Ministry of Urban Development, Vikas Bhawan, I.P. Estate, New Delhi 9. Shri Rajiv Malik, Assistant Resident Commissioner, Govt. of Maharashtra 10. Dr. Rakesh A.R. TCPO M/o UD Govt. of India 11. Shri Subhash Sharma, O.S.D., Govt. of Chhattisgarh 12. Shri Dinesh Pahadia, AGM RIICO Government 13. Ms. B. Uma Maheshwar, Project Manager, TSIIC, Telangana 14. Shri R. Krishna Murthy, General Manager, TSIIC, 15. Shri Mukesh Singh Kush, UPSIDC, Moradabad 16. Shri Rajender T Sharma, O/o STP, Gurgaon, STP (HQ) Chandigarh 17. Shri Sanjeeb Kumar Mishra, Resident Commissioner, Odisha 18. Shri Ishwar Singh Yadav, Asstt. Director, O/o DIC 19. Dr. S.K. Sahoo, Deputy Director (EP), O/o DC(MSME), M/o MSME, Nirman Bhawan, New Delhi. 20. Smt. Shiela Tirkey, Section Officer, Ministry of Commerce & Industry, Department of Industrial Policy & Promotion. 21. Shri Alok Mukhepadhyay. Consultancies, DIPP. LIST OF DEVELOPMENT COMMISSIONERS 22. Dr. L.B. Singhal, D....