The Government of India has declared L&T Tech Park Ltd as Special Economic Zone (SEZ) vide their Notification No: F/2/34/2005 – EPZ dt. June 27, 2006. Tenants of the Tech Park are entitled to SEZ Benefits as set out below:

1. Income tax exemption for 15 years is available for SEZ units as detailed under:

• 100% of profits and gains from export for the first 5 years
• 50% of profits and gains from export for the next 5 years
• Amount not exceeding 50%, which is credited to a reserve account 'Special Economic Zone Re-investment Reserve Account' and utilized for business for the next 5 years.

2. Stamp duty and Registration charges are exempted

3. On-site Customs Facilitation: Duty Free imports for all export production requirements:
There’s no Customs examination of import consignments. There’s self-sealing facility for export cargo.

4. Exemption of Central Excise Duty on procurement from the domestic market of capital goods, raw materials, consumables, spares etc.

5. Exemption is granted from all local taxes like Service Tax, Sales Tax and Entry Tax. Exports by SEZ units are generally exempted from export cesses.

6. SEZ Units can:

• Maintain foreign currency accounts and hold 100% of export proceeds in foreign currency.
• There is no time limit within which export proceeds have to be brought to India.
• Operate as a Branch of the foreign corporate, without first incorporating a company in India.
• SEZ units can take External Commercial Borrowing for funding and running projects without prior approvals.
• Easy (& free) SOFTEX attestation in SEZ. All activities of SEZ units, unless otherwise specified, are on self-certification basis.
• Better (& more reliable) infrastructure in SEZ: - A Customs Unit is deployed exclusively for Cochin SEZ. All customs clearances and documentation are done in the Zone itself.

For further queries, please visit http://www.sezindia.nic.in/