IT SEZ developers don't require Govt's approval
By siliconindia   |   Thursday, 22 April 2010, 15:39 IST   |    3 Comments
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IT SEZ developers don't require Govt's approval
New Delhi: Developers of IT or ITES Special Economic Zones (SEZ) do not require goverment's approval to broad base their product profile, said the Commerce and Industry Ministry. The move comes in wake of a number of such developers approaching the inter-ministerial Board of Approval (BoA) with request to "broad-band their product profile by including electronic hardware." "No approval of BoA is required for broad-banding as IT/ITES includes both hardware and software," said the Ministry. Previously, developers required permission from the BoA headed by the Commerce Secretary to broad base their product profile in IT and ITeS sector. Of the approved 585 SEZs, most are in the IT and related sector. SEZs have emerged as major sources of export earnings for the country with outward shipments from 105 operational tax-free enclaves touching Rs 2.2 lakh crore in 2009-10. Under the SEZ Act, units in these zones enjoy 100 percent tax exemption on their income for the first five years and 50 percent in the next five years.

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