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â??Special Economic Zone (SEZ) increase foreign investmentâ??. Explain

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100% foreign direct investment is under the automatic route is allowed in manufacturing sector in SEZ units except arms and ammunition, explosive, atomic substance, narcotics and hazardous chemicals, distillation and brewing of alcoholic drinks and cigarettes , cigars and manufactured tobacco substitutes....
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100% foreign direct investment is under the automatic route is allowed in manufacturing sector in SEZ units except arms and ammunition, explosive, atomic substance, narcotics and hazardous chemicals, distillation and brewing of alcoholic drinks and cigarettes , cigars and manufactured tobacco substitutes. No cap on foreign investments for SSI ...

  • Income Tax benefit under ( 80 IA ) to developers for any block of 10 years in 15 years

  • Duty free import/domestic procurement of goods for development, operation and maintenance of SEZs.

  • Exemption from Service Tax /CST.


  • Income of infrastructure capital fund/co. from investment in SEZ exempt from Income Tax

  • Investment made by individuals etc in a SEZ co also eligible for exemption u/s 88 of IT Act

  • Developer permitted to transfer infrastructure facility for operation and maintenance.

  • Generation, transmission and distribution of power in SEZs allowed

  • Full freedom in allocation of space and built up area to approved SEZ units on commercial basis.

  • Authorised to provide and maintain service like water, electricity, security, restaurants and recreation centres on commercial lines.

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JEE / NEET Chemistry Faculty

Yes , SEZ are formed to increase foreign investments there by giving a boost to economy of a country . This is done by special taxation policies in those areas in short tax levied would be comparatively less in par with other parts of the country !!
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