Special Economic Zones
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Fiscal Support Provided by Tamilnadu SEZ
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Fiscal Support Provided by Tamilnadu SEZ is the best that is available in the country for setting up of the SEZ. The Tamilnadu SEZ Fiscal Policy is such that it will attract companies to set up their units in the SEZ in the state.
Fiscal Policy with respect to SEZ means that the government formulates rules that affect the economic activity, income distribution, and resource allocation with respect to SEZ. The Tamilnadu state government has adopted such beneficial fiscal policy for the SEZ for the government wants the number of SEZ in the state to go up. The reason for this is that SEZ helps in bringing money and employment opportunities in the state and this results in the economic and industrial development of the state.
The various beneficial Fiscal Support Provided by Tamilnadu SEZ are that import of goods for the purpose of operation, development, and maintenance of the units in SEZ are duty free, exemption of 100% income tax on the export income for the units that are within the SEZ for a period of 5 years, and after that 50% income tax exemption for a period of 5 years.
Further the Fiscal Support Provided by SEZ Tamilnadu includes exemption from all other kinds of taxes such as Sales Tax, Excise Duty, Customs Duty, Mandi Tax, Purchase Tax and Electricity Cess. These tax exemptions help the companies that have set up their units in the SEZ to expand even more for their level of profits grow. Also the various other positive Fiscal Support that is provided by the Tamilnadu SEZ are that all the units within the SEZ are exempted from paying the Minimum Alternate Tax, the industrial units in the SEZ do not have to pay any registration charges and stamp duty on land transactions, and the industrial units in the SEZ can receive foreign direct investments up to 100%.
The various Fiscal Support Provided by Tamilnadu SEZ are that the developer of the SEZ and the industrial units in the SEZ would not have to pay the taxes that are charged by the local bodies for they would be responsible for their own maintenance and the VAT and Sales Tax will be applicable on the goods that are produced in the SEZ and are sold in the local market.
Fiscal Support Provided by Tamilnadu SEZ as seen has been such that, it has encouraged the setting up of more and more SEZ in the state. This has resulted in the number of SEZ in the state to increase in the last few years and many new SEZs are to come up in the near future. The Tamilnadu state government must continue to formulate such friendly Fiscal Policy with regard to SEZ also in the near future.
The various beneficial Fiscal Support Provided by Tamilnadu SEZ are that import of goods for the purpose of operation, development, and maintenance of the units in SEZ are duty free, exemption of 100% income tax on the export income for the units that are within the SEZ for a period of 5 years, and after that 50% income tax exemption for a period of 5 years.
Further the Fiscal Support Provided by SEZ Tamilnadu includes exemption from all other kinds of taxes such as Sales Tax, Excise Duty, Customs Duty, Mandi Tax, Purchase Tax and Electricity Cess. These tax exemptions help the companies that have set up their units in the SEZ to expand even more for their level of profits grow. Also the various other positive Fiscal Support that is provided by the Tamilnadu SEZ are that all the units within the SEZ are exempted from paying the Minimum Alternate Tax, the industrial units in the SEZ do not have to pay any registration charges and stamp duty on land transactions, and the industrial units in the SEZ can receive foreign direct investments up to 100%.
The various Fiscal Support Provided by Tamilnadu SEZ are that the developer of the SEZ and the industrial units in the SEZ would not have to pay the taxes that are charged by the local bodies for they would be responsible for their own maintenance and the VAT and Sales Tax will be applicable on the goods that are produced in the SEZ and are sold in the local market.
Fiscal Support Provided by Tamilnadu SEZ as seen has been such that, it has encouraged the setting up of more and more SEZ in the state. This has resulted in the number of SEZ in the state to increase in the last few years and many new SEZs are to come up in the near future. The Tamilnadu state government must continue to formulate such friendly Fiscal Policy with regard to SEZ also in the near future.
