SEZ - Bifurcation of non-processing area - SEZ Rules amended
GOVERNMENT has amended the SEZ Rules to insert a new Rule 11A:
Bifurcation of non-processing area: The non-processing area can be bifurcated into two parts, namely:-
1. Where the social or commercial infrastructure and other facilities are permitted to be used by both the Special Economic Zone and Domestic Tariff Area entities: No exemptions, concessions or drawback shall be admissible for creation of such infra structure. The Customs duty, Central Excise duty, Service Tax, and such other Central levies and tax benefits already availed for creation of such infrastructure shall be refunded by the Developer in full, without interest. However, in cases of short payment of the amount refundable to the Government on account of dual use permission, interest will have to be paid at the rate of fifteen per cent per annum from the day the said amount becomes payable to the date of actual payment.
2. Where the social or commercial infrastructure and other facilities are permitted to be used only by Special Economic Zone entities: This portion shall be bonded and physically segregated from the Domestic Tariff Area, non-processing area, specified at (1) above and the processing area of the Special Economic Zone. The infrastructure, as may be approved by the Board, for this part of non processing area shall be eligible for exemptions, concessions and drawback.
The Department of Commerce has provided certain norms with respect to are as to be earmarked for residential, commercial and other social facilities:
The area restrictions for duty paid dual use non processing area in the Special Economic Zones shall be:
(i) Housing - not more than twenty five per cent of non-processing area;
(ii) Commercial- not more than ten per cent of non-processing area;
(iii) Open area and circulation area-not less than forty five per cent of non processing area;
(iv) Social and institutional infrastructure including schools, colleges, sociocultural centres, training institutes, banks, post office, etc., in the remaining area.