Govt to roll out online platform for SEZs to raise issues
05/08/2016 14:19
The union government will soon roll out a web-based platform for special economic zones (SEZs) to raise their concerns and action taken may be provided by the concerned authority, a top Union Commerce Ministry official said at an ASSOCHAM event on Thursday.
“This will provide a platform for constant dialogue and transparency in resolution of issues. I intend to roll it out as soon as possible,” said Alok V. Chaturvedi, additional secretary, Department of Commerce while inaugurating 10th SEZ Convention organized by ASSOCHAM.
“The software is already in place, we need to adopt it for our requirement, efforts have already been made in this direction,” said Chaturvedi.
He added that the online platform would be on the lines of a project monitoring group system in the cabinet secretariat.
Highlighting the issue of lifting of Minimum Alternative Tax (MAT) and Dividend Distribution Tax (DDT) concerning the SEZ sector, Chaturvedi said, “MAT appears to be unfair for SEZ units and it is not in tune with the Government philosophy of stable tax regime, we have taken up the issue with Finance Ministry.”
“According to Finance Ministry, MAT has been imposed to partly recoup the loss of revenue due to profit-linked exemptions. They are bringing down average rate of corporate tax. However, we have taken it up again in view of adverse export conditions and the stellar role played by SEZ in the export growth and the employment generation,” he said.
“Alternative suggestions regarding reduction of MAT from 20.5 per cent to 7.5 per cent or extension of period of ten years till the entire MAT credit is adjusted against the tax liability of SEZ will also be taken up with Finance Department,” he added.
Talking about the contribution of SEZs in growth of India’s economy, he said that over 200 SEZs are operational while over 400 SEZs have been formally approved. Total investment in SEZs is over USD 50 billion and they are providing direct employment to over 1.5 million persons.
05/08/2016 14:19
“This will provide a platform for constant dialogue and transparency in resolution of issues. I intend to roll it out as soon as possible,” said Alok V. Chaturvedi, additional secretary, Department of Commerce while inaugurating 10th SEZ Convention organized by ASSOCHAM.
“The software is already in place, we need to adopt it for our requirement, efforts have already been made in this direction,” said Chaturvedi.
He added that the online platform would be on the lines of a project monitoring group system in the cabinet secretariat.
Highlighting the issue of lifting of Minimum Alternative Tax (MAT) and Dividend Distribution Tax (DDT) concerning the SEZ sector, Chaturvedi said, “MAT appears to be unfair for SEZ units and it is not in tune with the Government philosophy of stable tax regime, we have taken up the issue with Finance Ministry.”
“According to Finance Ministry, MAT has been imposed to partly recoup the loss of revenue due to profit-linked exemptions. They are bringing down average rate of corporate tax. However, we have taken it up again in view of adverse export conditions and the stellar role played by SEZ in the export growth and the employment generation,” he said.
“Alternative suggestions regarding reduction of MAT from 20.5 per cent to 7.5 per cent or extension of period of ten years till the entire MAT credit is adjusted against the tax liability of SEZ will also be taken up with Finance Department,” he added.
Talking about the contribution of SEZs in growth of India’s economy, he said that over 200 SEZs are operational while over 400 SEZs have been formally approved. Total investment in SEZs is over USD 50 billion and they are providing direct employment to over 1.5 million persons.
