EPCES
TO HOLD OPEN HOUSE WITH COMMERCE SECY ON SEPT 4
Thesynergyonline
Economic Bureau
NEW
DELHI, AUG 27 :
THE Export Promotion Counci for EOUs and SEZs (EPCES) is organizing
an open house of EOUs, SEZ Units and SEZ Developers on September
4 at Kolkata for resolving the issues of EOUs and SEZs . This
was informed here by Mr L.B. Singhal, Director General, (EPCES).
Mr G.K. Pillai, Commerce Secretary is chairing this open house
which will be attended by Development Commissioners of Special
Economic Zones, senior officials of Ministry of Commerce, Ministry
of Finance, Director General of Foreign Trade, Director General
(Export Promotion), Department of Revene, CBEC, CBDT as well as
officials of RBI and State Government of West Bengal.
He
further informed that EPCES has so far organized 28 open houses
of EOUs, SEZ Units and SEZ Developers with the Commerce &
Industry Minister, Government of India and Commerce Secretary,
Government of India and other senior officers from Central and
concerned State Governments all over India at New Delhi, Mumbai,
Chennai, Kolkata, Ahmedabad, Hyderabad, Coimbatore, Surat, Ludhiana,
Bangalore, Kandla etc. As a result of these open houses, a number
of issues have been resolved.
This
open house will be the third one in West Bengal. The exports from
EOU/SEZ Sector was Rs.33,647 crore during 2002-03. However, within
5 years, the exports from this sector has risen to Rs.2,08,849
crore during 2007-08. The Open House at Kolkata is being organized
for resolving the issues of EOUs, SEZ Units and SEZ Developer
and to take suggestions from its members for submission to Ministry
of Commerce & Industry for formulation of Foreign Trade Policy,
SEZ Act and SEZ Rules.
Mr
Singhal also informed that the last open house meet was organized
by the Council with Mr G.K. Pillai, Commerce Secretary on June
20, 2008 at Mumbai. The open house was attended by Principal Secretary
(Industry), Government of Maharashtra and Muncipal Commissiner
of Mumbai. As a follow-up of this open house in Mumbai, the following
issues have been resolved:
-
Power to decide manner of fencing and number of entry and exit
points in respect of IT/ITES SEZs, delegated to Development Commissioners.
(Circular issued by Ministry of Commerce & Industry).
-
Time frame for disposal of various activities in SEZ. (Circular
issued by Ministry of Commerce & Industry).
-
Direction for making available Form I to the SEZ Developers.
(Circular issued by Ministry of Commerce & Industry).
-
Clarification regarding processing and non-processing area in
the
Zone. (Clarification issued by Ministry of Commerce & Industry).
-
Directions to STPIs. (Directions issued by Ministry of Commerce
&
Industry).
This
Open House will be the third one in West Bengal. The exports from
EOU/SEZ Sector was Rs.33,647 crore during 2002-03. However, within
5 years, the exports from this sector has risen to Rs.2,08,849
crore during 2007-08. The Open House at Kolkata is being organized
for resolving the issues of EOUs, SEZ Units and SEZ Developer
and to take suggestions from its members for submission to Ministry
of Commerce & Industry for formulation of Foreign Trade Policy,
SEZ Act and SEZ Rules. (npsinha@thesynergyonline.com)
ASSOCHAM
SEEKS HARMONISATION IN EXPORTS DEFINITIONS OF SEZ ACT 05 , IT
ACT 1961
Thesynergyonline
Economic Bureau
NEW
DELHI, AUG 23 :
IN a bid to avoid inconsistency in `exports definition under
SEZ Act 2005 and Income-Tax Act 1961 that disqualify SEZ units
to claim income-tax exemption under Section 10A of Income-Tax
Act 1961, The Associated Chambers of Commerce and Industry of
India (ASSOCHAM) has suggested harmonization in definition of
`exports under two Acts.
In
a representation submitted to the government, the Chamber has
pointed out that the SEZ Act 2005 under Section 2(m)(iii) provides
that `export means supplying goods or providing services
from one unit to another unit or developer, in the same or different
SEZ.
Whereas
the Income-Tax 1961 under the Explanation of Section 10AA provides
that `export in relation to SEZ means taking goods or providing
services out of India from a SEZ by land, sea, air or any other
mode, whether physical or otherwise.
`Because
of this inconsistency, export by units under the SEZ would not
qualify for Income-tax exemption under Section 10AA of the Income-Tax
1961 and therefore this anomaly needs to be corrected so that
harmonization in two Acts is effected to help SEZ units avail
of income-tax exemption, said ASSOCHAM President, Mr. Sajjan Jindal.
The
Chamber has also sought more clarity in the definition of `services
under the SEZ Act 2005 as legal accounting services are not clearly
defined and currently cause ambiguity.
The
ASSOCHAM has also sought host of other facilities for spread of
SEZ activities by emphasizing that procedure for selling of land
to SEZ developers be simplified and special status be given to
them for fund raising through IPOs etc.
Mr.
Jindal pointed out that the RBI classification of loans to SEZ
developers needs to be further made business friendly in the sense
that it should be put under Infrastructure category
and not as that of real estate category.
The
Chamber has suggested for adoption of joint strategic alliances
by centre and states as per which SEZ developers be invited to
put up economic activities in insurgency prone areas for employment
generation and prevent youths from taking up to militant activities.
The
ASSOCHAM has recommended that SEZs are badly required to be created
in Telengana, Bodoland, Chambhal Valley and naxal dominated belts
of Jharkhand, West Bengal and part of Bihar so that their employment
prospects increase and youths are encouraged towards taking up
to creative activities.
It
could be possible, provided centre and concerned states meet up
for a joint strategic alliance and come out with incentives and
then invite SEZ developers to put their activities in such area
to uplift them socially, economically and industrially, said Mr.
Jindal.
The
ASSOCHAM Paper has further pointed out that the Finance Act, 1994
under section 66A states that services provided by SEZ Developer/
Unit to DTA would not be regarded as import of services. More
clarity is needed in terms of service tax implication in SEZs.
Whether service tax would be paid by the SEZ Developer/ Unit or
the same would be paid by
the service recipient under reverse charged method.
The
EGOM on SEZs have imposed an upper cap of 5,000 hectares for multi-product
SEZs in the country. It is a balanced decision,
considering the current political scenario. The Chamber has suggested
that the government should keep a flexible approach to the issue,
and should not be closed to the idea of further liberalizing this
upper-cap on merits and case-to-case basis. SEZ developers in
all over the world agree that bigger the scale is, better the
project is. The Chinese experience is a living manifestation of
this. The Hainan SEZ in China alone covers an area of 34,000 sq.
km.
The
farmers should be offered proper stake by way of shareholding
in the proposed project so that the farmer, if he so desires,
can have a long term interest in the project and reap long term
benefits. Effective rehabilitation policy for displaced land owners
with at least one member of the family given job in SEZ after
proper training. (npsinha@thesynergyonline.com)