Question

What are SEZ? What are advantages of SEZ to MNC's?

Answer 1

A SEZ unit which has been set up for carrying on manufacturing, trading or service activity has both advantagesas well as disadvantages. SEZ advantages are quite far more as compared to its disadvantages which are almost negligible.

Answer 2

Answer:

A SEZ unit which has been set up for carrying on manufacturing, trading or service activity has both advantages as well as disadvantages. SEZ advantages are quite far more as compared to its disadvantages which are almost negligible.

Advantages

15 year corporate tax holiday on export profit – 100% for initial 5 years, 50% for the next 5 years and up to 50% for the balance 5 years equivalent to profits ploughed back for investment.

Allowed to carry forward losses.

No licence required for import made under SEZ units.

Duty free import or domestic procurement of goods for setting up of the SEZ units.

Goods imported/procured locally are duty free and could be utilized over the approval period of 5 years.

Exemption from customs duty on import of capital goods, raw materials, consumables, spares, etc.

Explanation:

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