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

Detailed Legal Analysis

A new Special Economic Zone (SEZ) unit in Thrissur can avail numerous benefits under the State Special Economic Zone Policy, which is aligned with the Central SEZ Act, 2005 and the SEZ Rules, 2006.

Here are the key benefits and incentives available to SEZ units in Thrissur:

• Tax Benefits:
  • 100% income tax exemption on export profits for the first five years, 50% for the next five years, and 50% of the ploughed back profits for the next five years (Section 10AA of the Income Tax Act, 1961).
  • Exemption from Goods and Services Tax (GST) on supplies to and by the SEZ unit.
• Import and Export Benefits:
  • Exemption from customs duties on imports and exports of goods.
  • Freedom to operate in the international market without restrictions.
• State Government Incentives:
  • Reimbursement of stamp duty and registration fees.
  • Subsidies on the power tariff and other utilities as per the state policy.
• Single Window Clearance:
  • The SEZ unit would benefit from a single-window clearance mechanism for all approvals and registrations needed to commence operations.
• Infrastructure Support:
  • Access to improved infrastructure such as roads, telecommunications, and utilities designed to support industrial growth.
  • Provisions for common facilities that can be shared among units to reduce costs.

To set up an SEZ unit in Thrissur, the following steps are typically involved:

• Conduct a feasibility study to ensure the viability of the project.
• Submit an application to the Department of Commerce, Government of India, along with the project report.
• Obtain approval from the Board of Approval (BoA) for SEZs.
• Complete all necessary registrations and obtain licenses as per the SEZ Act and State policies.

Overall, establishing a new SEZ unit in Thrissur can provide significant economic advantages, facilitating business growth and promoting exports in line with national economic objectives.