SEZs or special economic zones are specified areas notified as SEZs, where businesses that satisfy certain criteria are entitled to benefits including customs duty, income tax, goods and services tax. Such benefits were not available to businesses located outside the SEZs, which were referred to as Domestic Tariff Areas or DTAs. When originally introduced, the special economic zones attracted several businesses. With time however, these benefits were extended to all locations and the attractiveness of being in an SEZ waned.
Recently, the government has issued a notification permitting such SEZs to operate partially as SEZs and partially as DTAs.
Please click here to read the full article by Raj Ramachandran, published in ET Edge Insights.
Raj specializes in Corporate Commercial, Banking & Finance and Cross Border Investments & Acquisitions.