Special economic zones in India

What are Special Economic Zones (SEZ) in India? Special Economic Zone (SEZ) is an area where economic laws are more relaxed than a country's typical or national laws. In India SEZs have been developed to promote exports. The Special Economic Zones (SEZs) Policy was announced in April 2000. The Special Economic Zones Act, 2005, was passed by the Parliament in 2005. The SEZ act came into effect in 2006. The main objectives of the SEZ Act are: (a) generation of additional economic activity (b) promotion of exports of goods and services (c) promotion of investment from domestic and foreign sources (d) creation of employment opportunities (e) development of infrastructure facilities The major incentives and facilities available to SEZ developers include:- - Exemption from customs/excise duties for development of SEZs for authorized operations approved by the BOA. - Income Tax exemption on income derived from the business of development of the SEZ in a block of 10 years in 15 years under Section 80-IAB of the Income Tax Act. - Exemption from minimum alternate tax under Section 115 JB of the Income Tax Act. - Exemption from dividend distribution tax under Section 115O of the Income Tax Act. - Exemption from Central Sales Tax (CST). - Exemption from Service Tax (Section 7, 26 and Second Schedule of the SEZ Act).