Wait...
Search Global Export Import Trade Data
Recent Searches: No Recent Searches

An export overhaul could see SEZs shifting from Videsh to DESH.


Date: 22-06-2022
Subject: An export overhaul could see SEZs shifting from Videsh to DESH
India is proposing to transform its narrow export-focused special economic zones (SEZs) into comprehensive economic hubs through several concessions and the easing of restrictions to attract more investment in these areas.

Industrial units located in these hubs, which will be called Development of Enterprise and Service Hubs (DESH), may be allowed to sell in the domestic market, and contract manufacture for those outside these zones as well, according to a draft circulated for consultation.

Some fiscal incentives and measures to improve the ease of doing business are also likely to be part of the package to transform SEZs into comprehensive economic zones.
These hubs may be established by the Centre or a state or jointly by them, or any person for the manufacture of goods or rendering services or for both.

An ‘equalisation levy’ may be imposed on goods or services supplied to the domestic tariff area to bring taxes on them at par with those provided by units outside the zones. Currently, units in SEZs are export focussed and face certain restrictions on sales to domestic market.

Appropriate legislation is likely to be introduced in the upcoming monsoon session of parliament once the draft is finalised after stakeholder consultations, said people aware of the deliberations.

Finance minister Nirmala Sitharaman said in her February budget speech that the SEZ Act will be replaced with new legislation that would enable states to become partners in development.

States looking to set up such zones will be able to set up boards that will be responsible for oversight. It is also proposed to relax the mandatory foreign exchange payment for domestic tariff area supplies and permit subcontracting both for goods and services for DTA units.

“The plan is to make the new SEZ scheme compliant with the WTO rules and doing away with the Net Foreign Exchange clause is the first step in that direction,” said one official.

Many proposals in the draft are from the 2019 report of an expert committee headed by Bharat Forge chairman Baba Kalyani. The committee had suggested SEZs be converted into employment and economic enclaves (3Es) with the extension of tax sunset clauses, simplification of processes, tax benefits for the services sector, and extension of MSME schemes to these zones.

Experts said the draft proposes to change the focus from exports to economic activity, investment, and global value chain interlinkage among others, apart from the greater involvement of states.

“The proposal to move away from Net Foreign Exchange, services to be paid in INR, single window and subcontracting are some positives in line with the Baba Kalyani committee report,” said indirect taxes and SEZ expert Rahul Shukla.

Shukla said additional fiscal and non-fiscal benefits, including industrial estates being notified as hubs, will hopefully lead to greater benefits.

“However, the rules and clarity on the proposed equalisation levy is something trade will be looking at, including greater guidance on the hubs framework,” he said.

Industry has already raised its concerns about the proposed equalisation levy, saying that it will lead to instability and has suggested a single hub director for each DESH instead of multiple directors as proposed in the draft.

Source Name:-Economic Times













Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 23-11-2022
NOTIFICATIONNo. 23/2022 – Central Tax
Seeks to empower the Competition Commission of India to handle anti-profiteering cases under CGST Act, 2017 with effect from 01.12.2022.

Date: 23-11-2022
NOTIFICATION No. 24/2022 – Central Tax
Seeks to make fourth amendment (2022) to CGST Rules with effect from 01.12.2022.

Date: 18-11-2022
Notification No. 58/2022-Customs
Seeks to amend Notification No. 27/2011- Customs, dated the 1st March, 2011 in order to withdrawal export duty on iron ore & steel products.

Date: 18-11-2022
Notification No. 59/2022-Customs
Seeks to amend Notification No. 50/2017-Customs, dated the 30th June, 2017 in order to withdrawal BCD exemption on Anthracite and PCI Coal, Coke & Semi coke and ferronickel.

Date: 18-11-2022
Notification No. 60/2022-Customs
Seeks to amend Notification 11/2021-Customs, dated the 1st February, 2021 in order to withdrawal AIDC exemption on Anthracite ,PCI Coal and Coking Coal.

Date: 17-11-2022
Notification No. 97 /2022 - Customs (N.T.)
Seeks to giv exemption from BCD for the motor car if imported by the Governor of the state .

Date: 17-11-2022
Notification No. 57/2022-Customs
Seeks to giv exemption from BCD for the motor car if imported by the Governor of the state .

Date: 16-11-2022
Notification No. 38/2022-Central Excise
Seeks to amend No. 18/2022-Central Excise, dated the 19th July, 2022 to increase the Special Additional Excise Duty on production of Petroleum Crude.

Date: 16-11-2022
Notification No. 39/2022-Central Excise
Seeks to further amend No. 04/2022-Central Excise, dated the 30th June, 2022 , to reduce the Special Additional Excise Duty on Diesel.

Date: 15-11-2022
NOTIFICATION No. 22/2022 – Central Tax
Seeks to make amendments (Third Amendment, 2022) to the CGST Rules, 2017.



Exim Guru Copyright © 1999-2022 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001