Does Tamil Nadu have special law for SEZ units in Dindigul?

Detailed Legal Analysis

Tamil Nadu does have special provisions for Special Economic Zones (SEZ) units, including those located in Dindigul, primarily governed by the Special Economic Zones Act, 2005.

Under the SEZ Act, 2005, the central government has established a framework to promote the establishment of SEZs, which includes specific benefits and incentives for units operating within these zones. Here are key points related to the SEZ framework in Tamil Nadu:

• SEZ Act, 2005: The Act provides the legal foundation for the establishment, development, and management of SEZs in India. Sections 3 and 4 of the Act discuss the establishment of SEZs and the terms for approval.
• State Support: The Tamil Nadu government supports SEZ initiatives through various policies that offer additional incentives, such as tax exemptions and infrastructural support.
• Benefits for SEZ Units: Units in SEZs enjoy several incentives, including:
  • 100% Income Tax exemption for the first five years, followed by a 50% exemption for the next five years, and a further 50% on reinvested profits for an additional five years (Section 10AA of the Income Tax Act, 1961).
  • Exemption from Goods and Services Tax (GST) on goods and services procured from domestic markets.
  • Exemption from customs duty on imported goods.
• Approval Process: To establish a unit in an SEZ, the following steps are typically involved:
  • Submission of an application to the Development Commissioner of the SEZ.
  • Compliance with the prescribed eligibility criteria, including the minimum investment and export obligations.
  • Obtain necessary approvals from the concerned authorities.
• Regulatory Authority: The Development Commissioner oversees the functioning of SEZs, ensuring compliance with the SEZ Act and state regulations.

In addition to the SEZ Act, the Tamil Nadu Industrial Policy also encourages the establishment of SEZs and provides specific guidelines that enhance the business environment for potential investors. For businesses looking to set up in Dindigul, it is essential to stay updated on both central and state regulations to fully benefit from the incentives provided.