Parsvanath group pulls out of six special economic zone projects

DELHI: Real estate developer Parsvanath group has pulled out of six special economic zone projects claiming that the imposition of minimum alternate tax and the proposed direct taxes code that would change the taxation regime made them unviable.

The inter-ministerial decision making body on SEZs, the board of approval, gave its nod to the proposed withdrawal of the projects that were to come up in Uttar Pradesh, Rajasthan, Haryana, Tamil Nadu and Maharashtra. The BoA also decided to give more time to 45 developers including Navi Mumbai SEZ, the Raheja group and G P Realtors to implement their projects.

The finance ministry imposed a MAT of 18.5% this fiscal on all SEZs and is also working on a change in taxation regime under the DTC giving up profit linked exemptions in favour of exemptions linked to investments made.