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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....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 May, 2015 with the condition that the Developer shall furnish necessary clarifications to the State Governmen....
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....il 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 5th 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 the developer to submit revised undertaking towards implementation of the SEZ project at own risk and costs, within 7 days, failing which recommendation to Gol for extension ....
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....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 23rd 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) Request of M/s. GAR & Son Builders LLP for co-developer in the sector specific SEZ for IT/ITES at sy. No. 107, Kokapet Village, Gandipet Mandal, Ranga Reddy District, Telangana being developed by M/s. GAR Corporation Pvt. Ltd. After deliberations, the Board approved the proposal of M/s. GAR & Son Builders LLP for construction, development, investment in the development of in....
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....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 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. * Proposal to incorporate the above decision of BoA in SEZ Rules, 2006 has been approved and was sent to DLA for vetting. (i) Request of M/s. AON HR Services India Pvt. Ltd., a unit in IT/ITES SEZ of M/s. Candor Gurgao....
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....o 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. (iii) Request of M/s. Cargill Business Services India Pvt. Ltd., a unit in DLF Cyber City Developers Ltd. IT/ITES SEZ at Gurgaon (Haryana) for transfer of shares exceeding 50% to another entity. The Board, after deliberations, approved the proposal for transfer of shares exceeding 50% to another entity subject to following conditions:- i) S....
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....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. (v) Request of M/S. Regent Ropes, a unit in Kandla SEZ for change in partnership deed and shareholding pattern The Board, after deliberations, approved the proposal for change in partnership deed and shareholding pattern 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,....
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.... 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. (vii) Request of M/s. Aries International, a unit in Kandla SEZ for change in partnership deed and shareholding pattern The Board, after deliberations, approved the proposal for change in partnership deed and shareholding pattern 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 transf....
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....al Soft Private Ltd. to M/s. EIT Service India Private Ltd. 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 those relating to lease of land, as applicable. (....
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....ces unit. It was observed that if the unit wants to have a full-fledged service unit, they may apply for a separate unit for engineering, repairing services so that accounts are not mixed and NFE criteria is separately complied with by the new services unit. (ii) Requests of M/S. Anita Exports, a unit in KASEZ for renewal of LoA for extension of recycling of plastic waste and scrap. The Board, after deliberations, rejected the proposal. (iii) Request of M/s Adani Power Limited., a Co-Developer in Adani Ports and Special Economic Zone(APSEZ), Mundra for transfer of its Mundra Power Plant to its subsidiary Adani Power(Mundra) Limited. The Board, after deliberations, decided to defer the proposal and directed DC APSEZ to ascertain whether NOC of lenders had been taken as it was noted that the proposed transfer of the thermal power plant in APSEZ, Mundra with M/s. Adani Power Limited to its subsidiary was being done without transfer of liability of debt. (iv) Transfer of ownership of M/S eBay India Pvt. Ltd. a unit in Primal Project Pvt. Ltd. SEZ, Bangalore to M/S ES Online Services India Pvt. Ltd. under Rule 19 of SEZ Rules, 2006 It was pointed out that the case should be exami....
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....ard took note of the minutes of the 75th meeting of BoA held on 8.03.2017 on the above subject and reiterated its decision allowing the appeal of M/s Zoho Corporation dated 4.2.2017. (viii) Request of Medium Irrigation Project Division, Govt. of Gujarat, Ankleshwar for the permission of allotment of 2500 (approx) sq. mts. of land in Non processing area (Port Area) at Dahej SEZ, Dist. Bharuch for boat berthing for Narmada parikarma pilgrims. The Board after deliberations decided to approve the proposal subject to the condition that the SEZ land (access land as well as land for proposed boat berthing facility) to be used for the purpose may be de-notified. Item No. 78.6 : Cancellation of Formal Approval In terms of Rule 6(2)(a) of SEZ Rules, Formal Approval is valid for a period of three years by which time at least one unit has to commence production and the SEZ becomes operational from the date of commencement of such production. Proviso to this rule provides for extension of this Formal Approval by Board of Approval, for which the Developer will submit his application in Form C1 to the concerned DC, who shall, within 15 days forward it to the Board with his recommendations. ....