Important statutory compliance for STP units are
listed below as reference
Each of such unit is required to maintain separate accounts for its
operations. Separate annual balance sheet will have to be made for each
such unit which would be become a part of the main balance sheet of the
company. For maintaining separate accounts the following will have to be
- Maintenance of Separate Cash & Bank book and corresponding
- Maintenance of sales invoices.
- Maintenance of Fixed Assets register.
- Maintenance of Foreign Inward Remittance Certificate file
(FIRC's) & Bank Realisation Certificate file where the original
of the FIRC's and BRCs are kept.
- Maintenance of contract file, where copies of contracts received
from buyers are maintained.
- Preparation of yearly balance sheet for the unit which would
ultimately become a part of the balance sheet of the company.
Each unit is required to maintain separate bank accounts for its
operations. The units is free to have as many bank accounts as it
desires but shall have to designate a single branch of bank whom all
export documents will be submitted. In other words the work of handling
of all shipping documents and realisation of export proceeds will have
to be entrusted to this designated bank branch
The incentives and facilities offered to the
units in SEZs for attracting investments into the SEZs, including
foreign investment include : -
The major incentives and facilities available to SEZ developers
include : -
- Duty free import/domestic procurement of goods for development,
operation and maintenance of SEZ units
- 100% Income Tax exemption on export income for SEZ units under
Section 10AA of the Income Tax Act for first 5 years, 50% for next 5
years thereafter and 50% of the ploughed back export profit for next
- Exemption from minimum alternate tax under section 115JB of the
Income Tax Act.
- External commercial borrowing by SEZ units upto US $ 500 million
in a year without any maturity restriction through recognized
- Exemption from Central Sales Tax.
- Exemption from Service Tax.
- Single window clearance for Central and State level approvals.
- Exemption from State sales tax and other levies as extended by
the respective State Governments.
- Enhanced limit of Rs. 2.4 crores p.a. allowed for Managerial
A SEZ can be set up by the following
- Exemption from customs/excise duties for development of SEZs for
authorized operations approved by the BOA.
- Income Tax exemption on income derived from the business of
development of the SEZ in a block of 10 years in 15 years under
Section 80-IAB of the Income Tax Act.
- Exemption from minimum alternate tax under Section 115 JB of the
Income Tax Act.
- Exemption from dividend distribution tax under Section 115O of
the Income Tax Act.
- Exemption from Central Sales Tax (CST).
- Exemption from Service Tax (Section 7, 26 and Second Schedule of
the SEZ Act)
How we can help Regulatory Support
- Central Government
- State Government
- Private Limited Company
- Public Limited Company
- Foreign Company
- Jointly by any of the above
- Approval of SEZ (Settling application before BOA, preparation of
project report, facts sheet in case of conversion etc.)
- Approval of letter of permission (LOP) / renewal of letter of
- Approval of green card
- Approval of Import Export Code Number
- Permission for inter-unit transfer of capital goods
- Permission for disposal of waste and scrap
- Approval for enhancement of production capacity
- Permission for additional location / change of location
- Permission for sale of rejects
- Permission for sale of DTA sale
- Assisting in claiming Duty Drawback
- Assisting in claiming DEPB
- NOC for de bonding of materials
- NOC for de bonding of premises
Litigation Support and Representations
- Structuring of contracts/transactions to optimize indirect tax
- Formulating indirect tax efficient business models
- Conducting VAT impact assessment studies
- Harmonising customs valuation
- Undertaking comprehensive reviews of business operations
- Conducting indirect tax specific due diligence reviews
- Advice on classification, valuation, applicability of taxes on
transactions and admissibility to tax benefits/exemptions
- Opinions on indirect tax issues
- Identification of innovative tax planning opportunities
- Preparations of customized compliance manuals on all taxes
- Single point contact & centralized coordination for tax
payments, filing of returns & compilation of documents
- Drafting appeals & submissions
- Appearances & arguments before adjudication & appellate
- Briefing Senior Counsel on need basis
- Representation before relevant Government authorities on tax &
trade policy issues
- Developing economic justification for tariff/non-tariff