What benefits are available to a new SEZ unit I want to start in Bareilly under the state special economic zone policy?

Detailed Legal Analysis

A new Special Economic Zone (SEZ) unit in Bareilly can avail various benefits under the Indian SEZ Act, 2005, and the respective state policies. These benefits are designed to promote economic growth, enhance exports, and attract investment.

Here are the key benefits available to a new SEZ unit:

• Tax Benefits:
  • 100% Income Tax exemption for the first five years as per Section 10AA of the Income Tax Act, 1961.
  • 50% exemption for the next five years, and a 50% exemption on reinvested profits for another five years.
• Customs Duty Exemption:
  • Exemption from customs duties on goods imported into the SEZ for use in the unit.
  • No customs duties on goods exported from the SEZ.
• Goods and Services Tax (GST) Benefits:
  • Exemption from GST on supplies made to the SEZ units.
  • Input tax credit on goods and services used in the production process.
• Infrastructure Support:
  • Access to world-class infrastructure facilities, including transport, utilities, and communication services.
  • Government support for setting up necessary facilities like roads, ports, and power supply.
• Single Window Clearance:
  • A streamlined process for obtaining all necessary approvals and clearances from various government departments.
  • Facilitated by the Development Commissioner of the SEZ.
• Employment Generation:
  • Incentives for generating employment, including subsidies for training programs.
  • Access to a larger labor market due to the SEZ's attractiveness for industries.
• State-specific Benefits:
  • Additional incentives may be available under the Uttar Pradesh Special Economic Zones Act, 2005, including capital investment subsidies.
  • Support for infrastructure development and skill development initiatives.

To set up a new SEZ unit, you must comply with the formalities outlined in the SEZ Act, 2005, including submission of an application to the Board of Approval, and ensuring adherence to the SEZ guidelines. These benefits facilitate a conducive environment for business growth and investment in Bareilly.