VAT, stamp duty waiver for SEZ units in the works
The commerce & industry ministry will come up with guidelines to help state governments implement a single-window clearance system for special economic zone (SEZ) units and developers.
By Amiti Sen, TNN |
NEW DELHI: The commerce & industry ministry will come up with guidelines to help state governments implement a single-window clearance system for special economic zone (SEZ) units and developers.
A mechanism for exempting units and developers from payment of VAT and stamp duty in the processing area will also form part of the guidelines, ministry sources said. The decision was taken at a meeting between representatives of the commerce department and state governments on Monday.
A system of single-window clearance for developers and units was promised in the SEZ Act and rules, but has so far not been implemented as state governments have not yet been able to get their act together.
Speaking to ET, an official who attended the meeting said all state governments have agreed to follow the guidelines which the commerce ministry would frame. There will be two different set of mechanisms for establishing single-window clearance –– one each for units and developers.
In the case of units, a small group headed by the development commissioner of the zone and including representatives from the state government and the Centre would be empowered to give all necessary clearances for building plans, export-import code, unit approvals and excise exemptions.
For SEZ developers, the commerce ministry is expected to suggest setting up of a empowered committee including the chief secretary and all officials from various departments which need to be consulted for giving building plan approval.
Sources added that the commerce ministry is also slated to spell out how exactly states should go about exempting SEZs from paying VAT and stamp duty. While some states are zero-rating VAT (which means that units do not have to pay it in the first place), in others SEZs have to file for reimbursement. “It would be easier if all states move to zero-rating,” the official said.
A mechanism for exempting units and developers from payment of VAT and stamp duty in the processing area will also form part of the guidelines, ministry sources said. The decision was taken at a meeting between representatives of the commerce department and state governments on Monday.
A system of single-window clearance for developers and units was promised in the SEZ Act and rules, but has so far not been implemented as state governments have not yet been able to get their act together.
Speaking to ET, an official who attended the meeting said all state governments have agreed to follow the guidelines which the commerce ministry would frame. There will be two different set of mechanisms for establishing single-window clearance –– one each for units and developers.
In the case of units, a small group headed by the development commissioner of the zone and including representatives from the state government and the Centre would be empowered to give all necessary clearances for building plans, export-import code, unit approvals and excise exemptions.
For SEZ developers, the commerce ministry is expected to suggest setting up of a empowered committee including the chief secretary and all officials from various departments which need to be consulted for giving building plan approval.
Sources added that the commerce ministry is also slated to spell out how exactly states should go about exempting SEZs from paying VAT and stamp duty. While some states are zero-rating VAT (which means that units do not have to pay it in the first place), in others SEZs have to file for reimbursement. “It would be easier if all states move to zero-rating,” the official said.
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