TaxTMI 
TaxTMI 
Minutes of the 78th meeting of the. Board of Approval for SEZ held on 03rd July 2017 to consider setting up of Special Economic Zones and other miscellaneous proposals
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....sons. Board also observed that extensions may not be granted as a matter of routine unless some progress has been made on ground by the developers. The Board, therefore, after deliberations, extended the validity of the formal approval to the requests for extensions beyond fifth years for a period of one year and those beyond sixth year for a period of 6 months from the date of expiry of last extension" (i) Request of M/s. HBS Pharma SEZ Pvt. Ltd., for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Pharmaceuticals at Panoli Industrial Estate, District Bharuch, Gujarat beyond 16-06-2017. The Board, after deliberations, extended the validity of the formal approval up to 16th June, 2018. (ii) to (ix) Further extension of the validity period of formal approval, granted for setting up of eight by M/s. Navi Mumbai SEZ Pvt. Ltd as in agenda item no. 78.1 (ii to ix) The Board was apprised that extension of the validity of the formal approval up to 26th February, 2016 in respect of two of the eight above SEZs (Sl. No. IV & V) were approved by the BoA in its 65th meeting held on Ma....
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....her extension of the validity of formal approval, granted for setting up of Biotechnology Sector Specific SEZ at Village Rahka and Nimoth, Tehsil Sohna, Gurgaon (Haryana) beyond 13.07.2017. The Board, after deliberations, extended the validity of the formal approval up to 13th July, 2018. (xii) Request of M/s. Metro Valley Business Park Pvt. Ltd. for further extension of the validity of formal approval, granted for setting up of IT/ITES SEZ at 5^th milestone, Village Gwal Pahari, Gurgaon-Faridabad Road, Distt. Gurgaon (Haryana) beyond 05.05.2015. The representative of Government of Haryana informed that the Government of Haryana had approached the A.G. for legal opinion in the matter and therefore, requested for deferment of the proposal. It was observed that as per earlier dated 28.12.2016, Government of Haryana had conveyed that as per orders of Hon'ble CM Haryana, all the lapsed permissions pertaining to the SEZ may be restored afresh with a minimum validity period of 3 years, so as to ensure that the project is implemented in a time bound manner. Further, vide letter dated 7.3.2017, Director of Industries and Commerce, Govt of Haryana asked ....
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....n of Letter of Approval (LOA) beyond 28.06.2017 for 1 year up to 28.06.2018. The Board, after deliberations, extended the validity of the LoP up to 28^th June, 2018. (iv) Request of M/s. Biomedical Life Sciences Private Limited in the Zydus - Pharmaceutical-SEZ, Matoda, Ahmedabad for extension of Letter of Permission (LoP) beyond 23-06-2017 for 01 (one) year more upto 23-06-2018. The Board, after deliberations, extended the validity of the LoP up to 23^rd June, 2018. (v) Request of M/s. Bremels Rubber Industries Private Limited in the ASPEN SEZ (Formerly Synefra SEZ) Palimar, Nandikaur Village, Padubidri, Udupi Taluk, Karnataka for extension of Letter of Permission (LOP) beyond three years up to 25.06.2018. The Board, after deliberations, extended the validity of the LoP up to 25th June, 2018. (vi) Request of M/s. Dr. Reddy's Laboratories in the VSEZ SEZ for extension of Letter of Permission (LoP) beyond 07.06.2017 for a period of one year upto 07.06.2018. The Board, after deliberations, extended the validity of the LoP up to 7th June, 2018. Item No. 78.3 Requests for co-developer (3 proposals) (i) Reque....
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....nitoring, road network, commercial or industrial construction, advertising & marketing and other consultancy services and undertaking other authorized operations as per Instruction No. 50 in accordance with the co-developer agreement entered into with the developer, subject to standard terms and conditions as per SEZ Act and Rules provided that the lease period does not exceed 30 years (Renewable). Item No. 78.4 : Change of Shareholding Pattern Cases (10 proposals) With a view to promote the ease of doing business in India and that restructuring of entity/ business is a fairly common occurrence, BoA in its 69th meeting held on 23.02.2016 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 ....
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.... transfer of shares exceeding 50% to another entity subject to following conditions:- i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered unit entity; ii) Fulfilment of all eligibility criteria applicable to unit, including security clearances etc., by the altered unit entity and its constituents; iii) Applicability of and compliance with all Revenue / Company Affairs /SEBI etc. rules which regulate issues like capital gains, equity change, transfer, taxability etc. iv) Full financial details relating to change in equity/merger, demerger, amalgamation or transfer in ownership etc. shall be furnished immediately to Member (IT), CBDT, Department 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....
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....onditions:- i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered unit entity; ii) Fulfilment of all eligibility criteria applicable to unit, including security clearances etc., by the altered unit entity and its constituents; iii) Applicability of and compliance with all Revenue / Company Affairs /SEBI etc. rules which regulate issues like capital gains, equity change, transfer, taxability etc. iv) Full financial details relating to change in equity/merger, demerger, amalgamation or transfer in ownership etc. shall be furnished immediately to Member (IT), CBDT, Department 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. ....
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....all eligibility criteria applicable to unit, including security clearances etc., by the altered unit entity and its constituents; iii) Applicability of and compliance with all Revenue / Company Affairs /SEBI etc. rules which regulate issues like capital gains, equity change, transfer, taxability etc. iv) Full financial details relating to change in equity/merger, demerger, amalgamation or transfer in ownership etc. shall be furnished immediately to Member (IT), CBDT, Department 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 unit shall furnish details of PAN and jurisdictional assessing officer of the unit to CBDT. viii) Meanwhile, the proposal for amendment in SEZ Rules m....
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....nd compliance with all Revenue / Company Affairs /SEBI etc. rules which regulate issues like capital gains, equity change, transfer, taxability etc. iv) Full financial details relating to change in equity/merger, demerger, amalgamation or transfer in ownership etc. shall be furnished immediately to Member (IT), CBDT, Department 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 unit shall furnish details of PAN and jurisdictional assessing officer of the unit to CBDT. viii) Meanwhile, the proposal for amendment in SEZ Rules may also be taken up by the SEZ division to bring clarity on such transactions. (ix) Request of M/s. Hewlett Packard Private Limited, a unit in TRIL SEZ, ....
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....ance with all Revenue / Company Affairs /SEBI etc. rules which regulate issues like capital gains, equity change, transfer, taxability etc. iv) Full financial details relating to change in equity/merger, demerger, amalgamation or transfer in ownership etc. shall be furnished immediately to Member (IT), CBDT, Department 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 unit shall furnish details of PAN and jurisdictional assessing officer of the unit to CBDT. viii) Meanwhile, the proposal for amendment in SEZ Rules may also be taken up by the SEZ division to bring clarity on such transactions. Item No. 78.5 : Miscellaneous Cases (8 proposals) (i) Request of M/s....
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....the BoA on a case to case basis. It was further clarified that the present proposal is for transfer of assets and liabilities of the SEZ units based on a Business Transfer Agreement wherein the software development business of ebay India (including the SEZ units) would be transferred to ES Online (a new Indian entity set up by the eBay group) on going concern basis under a slump sale arrangement along with all the assets and liabilities related to the SEZ unit. Therefore, the proposal is covered by the BoA decision. Therefore, the Board, after deliberations, decided to approve the proposal. (v) Request of M/s. T&V Holdings Private Limited co-developer in the sector specific SEZ for IT/ITES at Vallancherry village, Guduvanchery, Chengalpattu TK, Kancheepuram District, Tamil Nadu, being developed by M/S. Estancia IT Park Limited for surrender of SEZ area to an extent of 1.71 hectares The Board, after deliberations, approved the proposal of M/s. T&V Holdings Private Limited for surrender of SEZ area to an extent of 1.71 hectares, and to retain 3.56 hectares of land to develop infrastructural facilities. (vi) Request of M/s. Jubilant Infrastructur....
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....favorably for allowing the merger of the three units subject to the condition that Income Tax benefits would be available only with reference to the oldest unit. Since there is no provision in the SEZ Rules 2006 for such merger, it was recommended that the approval of Hon'ble CIM may be obtained. The Board also recommended that the SEZ Rules may be looked into comprehensively and necessary amendments may be carried out. (ii) Appeal of M/s. Onnsynex Ventures Private Limited, a unit in NSEZ against order dated 23.05.2017 passed by UAC, NSEZ The Board, after hearing the appellant allowed the appeal excluding warehousing of liquor and precious/semi precious metals. The Board also directed that the entrepreneur shall set up separate units for trading and warehousing. (iii) Appeal of M/s. Sujan Oil & Gas Infra Logistics, a unit in KASEZ against order dated 11.04.2017 passed by UAC, KASEZ The Board, after hearing the appellant decided to endorse the decision of the UAC as import of fertilizers is allowed only through State Trading Enterprises. Annexure - I List of Participants for the Meeting of the Board of Approval for Special Economi....