Advantages of a SEZ unit. Government benefits in India for a SEZ Unit.

 The information provided here is part of Import Export Training course online


Government benefits in India under a SEZ Unit.


Advantages of a SEZ unit. Government benefits in India for a SEZ Unit.


Incentives and facilities offered to the SEZs. What are the Benefits under STP scheme? What are the Advantage under STP scheme to an Exporter.


I have been receiving many enquiries seeking information about various government benefits under SEZ Unit. Let me write below a common reply on various questions asked by readers of this website about the benefits covered under Special Economic Zone. I hope, these details helps to enlighten about the government benefits offered to SEZ – Special Economic Zones.

Advantages of a SEZ unit. Government benefits in India for a SEZ Unit

The incentives and facilities offered to the units in SEZs for attracting investments into the SEZs, including foreign investment 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 5 years.


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 banking channels.

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.


The major incentives and facilities available to SEZ developers include:-

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).

Also read How to get export order from foreign buyers? 


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haresh khambhadiya: I am interesting to send diamonds to usa directly instead of surat or mumbai. But i dont know export duty rate, courier rate,how to open bank account for internatiinal trade, how get money in dollor in indian bank account, how to packaging, how to send safely, if not purchase by party how get back without duty, how to make bill for clients, which type of permisson or registration would required to with indian goverment.

Admin: haresh khambhadiya, Approach an expert to handle your needs

Muralipillai Koickal : I had been working with various companies such as Thermax Pune (DTA), Suzlon Mangalore (SEZ), Hani Era Textiles Mumbai(EOU) , and at last Metro Valley SEZ Gurgaon in managerial cadre. In fact I have had set up an end number of 100% EOU, SEZ, SEZ Units in various parts of the country. Unfortunately Metro Valley got into some land problems and as such their project is held up and the SEZ is not yet commissioned. Due to this I have started Consultancy in the arena of SEZ, EOU and related customs excise etc Presently I am settled in Pune and am having some clients. Since I have worked with SUZLON Mangalore I am having a good rapport with customs people at Development Commissioners Office at Cochin. In case you are having any contacts with Special Economic Zone/ SEZ Units, 100% EOUs, in and around Karnataka, Kerala please suggest my name so that we can work together on sharing basis .

vishnu vardhan raju Uppalapati: I have a query which I will explain in detail below, please if you have any solution please do let us know. We are an IT software services export company working in SEZ zone as of now (i.e)from last 3 years, before 3 years.Before 3 year period our office doesn’t come in STPI or SEZ zone but working as normal independent company from outside.We planned to take premises from SEZ zone and we requested our client to help us in provide us financial support to set up this premises (though there is some amount with us which is not sufficient to complete the works and set-up in SEZ – we got extra remittances from our client for two times which is about Rs.1.2mill and in the FIRC the purpose was mentioned as Against software services – now I would like to return it back to my client between there is no Invoice for this remittances as for the said amount I haven’t made any software exports to my client. When I asked my banker-he asked me for the invoice which I don’t have as that amount is borrowed for building the office infrastructure. we just had an agreement between my client and us.Secondly if I want to change the purpose in my FIRC how do we proceed with the bank. Please give us your valuable suggestion on this

suresh: We have imported a capital machine under EPCG licence in 'A' company at Pune. We have another 'B; company having unit in SEZ, Gujarath. Now we want to export from SEZ Gujarath utilizing Third Party procedure. The machine is indirectly used by SEZ unit. Is it okey

ARJUN SINGH: How Much amount can be invest in existing unit in sez for getting the income tax benefit or we can apply for new LOP for income tax benefit

riken shah: Dear Sir, Pls. share information regarding custom & excise clearance & documentation flow in sez. Thanks & Regards, Riken Shah

chintan siroya: from where i can get information of product which i can import to india without any duty if i am exporting earthing rod zinc coated made from mild steel

PRADIP P JOSHI: is GST applicable on Astrology income ?

WINDSOR INDUSTRIES: I would like to know that, shall we make exempted bill to SEZ after implementation of GST like earlier what we do in VAT.

adarsh: Is their any Exemption on Electricity bill in SEZ unit If Yes pls help me with procedure Our unit commencement year is 2002.

Nithin: I need to do a business from Singapore(supplier) to Coimbatore SEZ Unite(Buyer).what all benefits can sez customer get. 1.Will he be exempted from taxes(GST18%) 2.Will he have custom duty benefit(if yes i wanted the documentation for the same)?

brighty xavier: can anyone tells about is MAT is applicable for sez unit

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