SEZ incentives clarified by centre
New Delhi- In a recent announcement, all the units under the special economic zones (SEZs) who are planning to shift to new enclaves along with the government’s clarification can avail the tax benefits even after relocation.
However, various software companies have been issued with the clarification and as per the commerce department officials, this policy will be implied to all the sectors as per its demand for almost a year.
The only drawback of the policy is that the benefit will not be in perpetuity and will be only for the unexpired period. In case a unit has availed the service for three years out of the total five years, it will have only two years left to avail the benefit after relocation.
As per the Section 10AA which refers to the tax holiday for SEZ units states that 100 percent of the tax deduction of the eligible profits of the prior 10 years of operation will be followed by a 50 percent deduction of eligible profits for the future five years.
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