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

No tax relief for SEZs, rules Chidambaram.


Date: 30-03-2013
Subject: No tax relief for SEZs, rules Chidambaram
NEW DELHI: In a major setback to special economic zone (SEZ) developers, finance minister P Chidambaram has turned down the commerce department's plea to cut the minimum alternate tax (MAT), which was imposed two years ago.

A lower or no tax burden was cited as one of the main drivers for boosting investment in what were until recently duty-free enclaves. The commerce department had made a case for reversing Chidambaram's predecessor Pranab Mukherjee's move, even if partially, on the grounds that the production in the SEZs were meant for exports and would help increase shipments out of the country, resulting in a lower current account deficit (CAD) in the months ahead.

MAT is levied on firms with no taxable income but showing book profits.

But, senior government officials said the finance ministry had written to the commerce and industry ministry, saying that it would be difficult to go back to the earlier regime. Sources said that apart from the prospect of foregoing potential revenue during a tough fiscal environment, the finance ministry is also wary of moving into the designated duty-free areas from the so-called tariff area.


Given the stance, the commerce department has given up on the amendment that industry was expecting in the foreign trade policy expected to be announced next week. The revenue department has also opposed the move to allow developers to exit zones built by them, arguing that it would be tough for the government to impose conditions once there was a change of management.

The commerce department, however, seems to have made some headway on getting the finance ministry to tone down its opposition to reduce the minimum area requirement, although it is not clear if North Block would accept the proposal the way it was suggested (see table).

"There appears to be some agreement on this front. Finally, what will come out in the notification depends on what revenue and commerce secretaries agree on," said an official on condition of anonymity.

Another source said the commerce department is awaiting a communication from the finance ministry before incorporating changes in the Foreign Trade Policy, including extending some of the benefits under export promotion schemes.

The commerce department has been pushing a package for SEZs for over a year now, but it is only now that the finance ministry has agreed to consider some of the concessions, given the dire position of exports, which have decreased by over 4% during April-February, 2012-13.

During the course of the discussions, the finance ministry pruned some of the sops such as those available for non-processing areas that would have allowed those living outside the zones to use health or education facilities.


Source : timesofindia.indiatimes.com

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: 18-09-2025
Corrigendum
Corrigendum to Notification No. 9/2025 – Central Tax (Rate) dated 17.09.2025

Date: 17-09-2025
Notification No. 13/2025-Central Tax (Rate)
Seeks to amend Notification No. 21/2018- Central Tax (Rate) dated 26.07.2018.

Date: 17-09-2025
Notification No. 14/2025-Central Tax (Rate)
Seeks to notify GST rate for bricks.

Date: 17-09-2025
Notification No. 37/ 2025-Customs
Seeks to amend Notification No.19/2019-Customs dated 06.07.2019

Date: 17-09-2025
Notification No. 38/ 2025-Customs
Seeks to amend Notification No.29/2025-Customs dated 09.05.2025

Date: 17-09-2025
Notification No. 39/2025-Customs
Seeks to amend Notification No.50/2017-Customs, dated 30.06.2017

Date: 17-09-2025
NOTIFICATIONNo. 15/2025 – Central Tax
Seeks to exempt taxpayer with annual turnover less than Rs 2 Crore from filing annual return.

Date: 17-09-2025
NOTIFICATION No. 16/2025–Central Tax
Seeks to notify clauses (ii), (iii) of section 121, section 122 to section 124 and section 126 to 134 of Finance Act, 2025 to come into force.

Date: 17-09-2025
Notification No. 12/2025-Central Tax (Rate)
Seeks to amend Notification No. 8/2018- Central Tax (Rate) dated 25.01.2018.

Date: 17-09-2025
NOTIFICATION No. 14/2025 – Central Tax
Seeks to notify category of persons under section 54(6).



Exim Guru Copyright © 1999-2025 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