Tax sop window for SEZ units to stay open longer

In a move that promises to improve the viability of over 500 approved special economic zones (SEZs), the finance ministry is considering an additional window for units in these zones to begin operations and become eligible for tax sops. Earlier, the ministry had proposed to cap tax benefits for SEZs through the Direct Taxes Code (DTC) Bill, with specified cut-off dates. As per the new proposal, units in these zones will get 18 months from the date of last clearance obtained to begin commercial operations and become eligible for the 15-year tax sop. As per the DTC Bill, units are required to commence operations by March 31, 2014, to get the tax incentives, irrespective of whether the state and central agencies give them the clearances. The Bill also says that the developer of the SEZ should get the zone notified on or before March 31, 2010.