TMI BlogComparison of EOU and SEZ SchemesX X X X Extracts X X X X X X X X Extracts X X X X ..... the SEZ Act (read with section 27 of the SEZ Act, 2005 ). The units commencing operations before 1st April, 2005 shall be covered as per provision contained under section 10A of Income Tax Act . Note : In terms of SEZ Act, 2005 (with effect from 10.2.2006) for SEZ developer, the exemption from Income Tax shall be available for a period of 10 years in a block of 15 years as per section 80-IAB inserted after section 80-IA in terms of Second Schedule of the SEZ Act, 2005 . 100% Income-tax exemption upto 31.3.2011 (i.e. Assessment Year 2011-12) or first 10 years, whichever is earlier. At present, no income tax exemption available to EOU/STP/EHTP/BTP units 2. Constru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Trading Unit Trading units are allowed to be set up in SEZ. Trading units are not permitted to be set up under EOU Scheme. 7. Domestic Procurement Supply from DTA to SEZ is physical exports. Supply from DTA to EOU considered as deemed exports. 8. Benefit to DTA supplier For supplies from DTA, benefit of DEPB/Advance authorisation available. The drawback/claim of rebate applicable as in case of physical export. For supplies from DTA, benefit of deemed export drawback/ Advance authorisation/ Refund of terminal excise duty available. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment formalities to be completed at the respective port of import/ export. 13. Examination of Goods No routine examination of export /import goods by Customs. Examination of exports/imports goods by customs except in cases where self certification is allowed. 14. Warehousing License Private bonded Warehouse License not required. Private bonded warehouse license is required. 15. Locational Requirements SEZ unit can only be set up in the SEZ notified under Section 4 of the SEZ Act. No such requirement for EOU. EOU c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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