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100% Income Tax exemption for a block of 5 years and 50% for
5 consecutive years thereafter. |
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Tax exemption to the extent of 50% of the amount of profits ploughed back into business (in the form of “Special Economic Zone Re-investment Allowance Reserve Account”) for the next five consecutive years. |
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Freedom to carry forward losses for 8 years, thus providing tax shelter on losses incurred in the initial years. |
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100% Foreign Direct Investment in manufacturing sector allowed through automatic route barring a few sectors.
Exemption from Custom/Excise Duty on goods for setting up units in SEZs. |
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Exemption from customs duty on import of capital goods,
raw materials, consumables, and spares. |
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Freedom to raise External Commercial Borrowings without
any maturity restriction through recognized banking channels subject to an annual cap of US$ 500 million.
Domestic Sales allowed on payment of full duty subject
to import policy in force. |
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Exemption from Central Excise duty on procurement of capital goods, raw materials, consumable spares etc. from the domestic market. In addition to this, units are also entitled to reimbursement on Central Sales Tax paid on domestic purchases. |
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Relaxed labour laws and local resolution of disputes, thus
bypassing labour market rigidities. |
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Facility to realize and repatriate export proceeds within
12 months. |
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Exemption from industrial licensing requirement for items reserved for SSI sector. |
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No cap on foreign investment for Small Scale Industries (SSI) reserved items. |
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Profits allowed to be repatriated freely without any dividend -balancing requirement. |
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No routine examination by customs of export and import cargo, thus providing for hassle-free operations. |
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In-house customs Clearance. |
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Flexibility to deploy expatriate staff. |
