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

Detailed Legal Analysis

A new Special Economic Zone (SEZ) unit in Kolkata can avail various benefits under the State Special Economic Zone Policy as well as the Central Government's SEZ Act, 2005.

The key benefits available to a new SEZ unit include:

• Tax Incentives: SEZ units are exempt from various taxes, including:
  • 100% income tax exemption for the first five years.
  • 50% income tax exemption for the next five years.
  • In the last five years, the exemption is available on the profit derived from export.
• Goods and Services Tax (GST) Benefits: SEZ units can import goods and services without the payment of GST, which is a significant cost advantage.
• Customs Duty Exemption: Import of capital goods and raw materials for production is exempt from customs duties, provided they are used in the SEZ unit.
• Foreign Direct Investment (FDI): SEZs allow 100% FDI under the automatic route, facilitating easier investment from foreign entities.
• Single Window Clearance: The SEZ Act, 2005 (Section 6) provides for a single window clearance system to expedite approvals and clearances.
• Infrastructure Support: The State Government may provide necessary infrastructure support, including power, water, and transportation facilities, to SEZ units.
• Employment Generation: SEZ units can benefit from various employment generation schemes and may also receive incentives for creating jobs.
• State Incentives: The West Bengal SEZ Policy may offer additional incentives such as subsidies on land and utilities, depending on the specific zone and its development priorities.

To establish a new SEZ unit, you must follow certain steps:

• Submit an application to the Development Commissioner of the SEZ, detailing the project proposal.
• Obtain necessary approvals from the SEZ authorities and other relevant departments.
• Ensure compliance with the Environmental Impact Assessment (EIA) requirements.
• Register your unit with the Directorate General of Foreign Trade (DGFT) for an Importer Exporter Code (IEC).

Overall, starting a new SEZ unit in Kolkata can be highly beneficial, offering a conducive environment for business growth and expansion.