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TMI BlogMinutes of the 75th meeting of the Board of Approval for SEZ held on 8th March 2017 to consider setting up of Special Economic Zones and other miscellaneous proposalsX X X X Extracts X X X X X X X X Extracts X X X X ..... s operationalisation of the project and further extension is based on justifiable reasons. Board also observed that extensions may not be granted as a matter of routine unless some progress has been made on ground by the developers. The Board, therefore, after deliberations, extended the validity of the formal approval to the requests for extensions beyond fifth years for a period of one year and those beyond sixth year for a period of 6 months from the date of expiry of last extension" (i) Request of M/s. Indus Gene Expression Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotech and related activities at Kodur and Settipali villages, Chilamathur Mandal, Anantapur District, Andhra Pradesh,- beyond 13th February, 2017 The Board, after deliberations, extended the validity of the formal approval up to 13th February, 2018. (ii) Request of M/s. SEZ Biotech Services Pvt. Ltd. for further extension of the validity period of formal approval, granted for setting up of sector specific SEZ for Biotechnology at Manjari Budruk, Taluka Haveli, District Pune, Maharashtra, beyond 27th March, 2017 The Board, afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of validity period of its LoP beyond 28th February 2017. The Board, after deliberations, extended the validity of the LoP up to 28th February, 2018. (ii) Request of-M/s Kusum Healthcare Pvt. Ltd., a unit in Indore SEZ for extension of validity period of its LoP beyond 28th February 2017 The-Board after deliberation extended the validity of the LoP upto-28th February-2018. (iii) Request of M/s. APPL Industries Ltd., a unit in the multi product SEZ being developed by M/s. Dahej SEZ at Bharuch, Gujarat for extension of Letter of Permission (LoP) beyond 13th February, 2017 The Board, after deliberations, extended the validity of the LoP up to 13th February, 2018. (iv) Request of M/s. Macson Color Chem Pvt. Ltd., a unit in the multi product SEZ being developed by M/s. Dahej SEZ at Bharuch, Gujarat for extension of Letter of Permission (LoP) beyond 5th February, 2017 The Board, after deliberations, extended the validity of the LoP up to 5th February, 2018. (v) Request of M/s. Astra Specialty Compounds India Pvt. Ltd., a unit in the multi product SEZ being developed by M/s. Dahej SEZ at Bharuch, Gujarat for extension of Letter of Permission (LoP) beyond 5th February, 2017 The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f New SEZs (5 proposals) (i) Request of M/s. Modern Asset, Bangalore for setting up of sector specific SEZ for IT/ITES at Survey No. 2/1 & 2/2, Venkatala Village, Yelahanka Hobli, Bangaluru, Karnataka, over an area of 2.33 hectares. The Board, after deliberations, approved the proposal for setting up of a sector specific Special Economic Zone for IT/ITES at Survey No. 2/1 & 2/2, Venkatala Village, Yelahanka Hobli, Bangaluru, Karnataka, over an area of 2.33 hectares. (ii) Request of M/s. Modern Asset (Phase -II), Bangalore for setting up of sector specific SEZ for IT/ITES at Survey No. 2/2, Venkatala Village, Yelahanka Hobli, Bangaluru, Karnataka, over an area of 3.22 hectares. The Board, after deliberations, approved the proposal for setting up of a sector specific Special Economic Zone for IT/ITES at Survey No. 2/2, Venkatala Village, Yelahanka Hobli, Bangaluru, Karnataka, over an area of 3.22 hectares. (iii) Request of M/s. Oracle India Private Limited for setting up of sector specific SEZ for IT/ITES at Kadubeesanahalli Village, Varthur Hobli, Outer Ring Road, Bangalore East Taluk, Bangalore, Karnataka, over an area of 5.55 hectares. The Board, after deliberations, appr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hennai) Limited in the sector specific SEZ for IT/ITES at 1/124, Shivaji Garden, Moonlignt Stop, Nandampakkam Post, Ramapuram, Mount Poonamalle Road, Chennai for transfer of LoA from M/s. DLF Info City Developers (Chennai) Limited to M/s. DLF Home Developers Limited in terms of merger/amalgamation order passed by Hon'ble High Court. After deliberations, the Board approved the proposal for transfer of LoA from M/s. DLF Info City Developers (Chennai) Limited to M/s. DLF Home Developers Limited, subject to following conditions:- (i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered developer entity; (ii) Fulfillment of all eligibility criteria applicable to developer, including security clearances etc., by the altered developer entity and its constituents; (iii) Applicability of and compliance with all Revenue. / Company Affairs /SEBI etc, rules which regulate issues like capital gains, equity change, transfer, taxability etc. (iv) Full financial details relating to change in equity/merger, demerger, amalgamation or transfer in ownership etc. shall be furnished immediately to Member (IT), CBDT, Department of Revenue and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its. The Board, after deliberations, approved the proposal for change of shareholding of five units in different SEZs subject to following conditions:- i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered unit entity; ii) Fulfillment of all eligibility criteria applicable to unit, including security clearances etc., by the altered unit entity and its constituents; iii) Applicability of and compliance with all Revenue / Company Affairs /SEBI etc, rules which regulate issues like capital gains, equity change, transfer, taxability etc. iv) Full financial details relating to change in equity/merger, demerger, amalgamation or transfer in ownership etc. shall be furnished immediately to Member (IT), CBDT, Department of Revenue and to the jurisdictional Authority. v) The Assessing Officer shall have the right to assess the taxability of the gain/loss arising out of the transfer of equity or merger, demerger, amalgamation, transfer and ownerships etc. as may. be applicable and eligibility for deduction under relevant sections of the Income Tax Act, 1961. vi) The applicant shall comply with relevant State Government laws, inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity criteria applicable to unit, including security clearances etc., by the altered unit entity and its constituents; iii) Applicability of and compliance with all Revenue / Company Affairs /SEBI etc. rules which regulate issues like capital gains, equity change, transfer, taxability etc. iv) Full financial details relating to change in equity/merger, demerger, amalgamation or transfer in ownership etc. shall be furnished immediately to Member (IT), CBDT, Department of Revenue and to the jurisdictional Authority. v) The Assessing officer shall have the right to assess the taxability of the gain/loss arising out of the transfer of equity or merger, demerger, amalgamation, transfer and ownerships etc. as may be applicable and eligibility for deduction under relevant sections of the Income Tax Act, 1961. vi) The applicant shall comply with relevant State Government laws, including those relating to lease of land, as applicable. vii) The unit shall furnish details of PAN and jurisdictional assessing officer of the unit to CBDT. viii) Meanwhile, the proposal for amendment in SEZ Rules may also be taken up by the SEZ division to bring clarity on such transactions. (vi) Request of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Company Affairs /SEBI etc. rules which regulate issues like capital gains, equity change, transfer, taxability etc. (iv) Full financial details relating to change in equity/merger, demerger, amalgamation or transfer in ownership etc. shall be furnished immediately to Member (IT), CBDT, Department of Revenue and to the jurisdictional Authority. (v) The Assessing Officer shall have the right to assess the taxability of the gain/loss arising out of the transfer of equity or merger, demerger, amalgamation, transfer and ownerships etc. as may be applicable and eligibility for deduction under relevant sections of the Income Tax Act, 1961. (vi) The applicant shall comply with relevant State Government laws, including those relating to lease of land, as applicable. (vii) The unit shall furnish details of PAN and jurisdictional assessing officer of the unit to CBDT. (viii) Meanwhile, the proposal for amendment in SEZ Rules may also be taken up by the SEZ division to bring clarity on such transactions. (viii) Request of M/s. Divija Commercial Properties Ltd. of sector specific SEZ for IT/ITES at Sy. No. 83/1, Raidurgam, Madhapur, Hyderabad for dilution of stake of 50% to M/s. RMZ Info ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the meanwhile, all DCs will intimate the details of Sandal Wood units to DoC/DGFT by 27.3.2017. (ii) Request of M/s. Wipro Ltd. at Survey No. 39, Old TB Hospital Area, Visakhapatnam to add additional area to the already approved area for its IT/ITES SEZ The Board, after deliberations, approved the proposal with the condition that the direct tax benefits will be available only on the new infrastructure. Item No. 75.7 Cancellation of Formal Approvals (8 proposals) The Board examined the following 8 cases of cancellation of formal approval /notification and approved cancellation of their formal approvals:- Sr. No. Name of the Developer/co-developer Sector Date of formal approval Zone 1. M/s Kinfotech Software Pvt. Ltd. (Gunjimutt, Mangalore, Karnataka) IT/ITES 30.07.2007 CSEZ 2. M/s Concord India Pvt. Ltd. (Kadugondi Industrial area, Bitharahalli Hobli, Bangalore, (Karnataka) IT/ITES 30.10.2008 CSEZ 3. M/s Chaitanya Infrastructure Pvt. Ltd. (Whitefield Main Road, Bangalore Karnataka) IT/ITES 26.10.2006 CSEZ 4. M/s Bangalore International Airport Limited (BIAL Airport, Devanahalli, Bangalore, Karnataka IT/ITES 29.09.2008 CSEZ 5. M/s Heera Realcon Priv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g under the ambit of authorized operations of the unit: (i) Sponsorship services (ii) Selling of time or space slots for advertisements (iii) Promotion or marketing of brand of goods/services/events services (iv) Event management services (v) Tour operator services The Board heard the representatives of the Appellant. The appellant stated that they area product company and they plan to build their brand by participating in various marketing events, tradeshows and also involve in various promotional activities. The reach of such activities is very wide across the globe which would boost their sales. They operate mainly as a SEZ Unit. They emphasized that the above services essential to boost their exports and required for their authorized operations, i.e. IT/ITES (They are in the business of development of software and its functioning, Being a product based company, it is essential for them to be aware of the customer requirements and satisfy them accordingly. Therefore, the above services are required for the reasons given in their appeal form J dated 4.2.2017. DGEP expressed reservation on the proposal and stated that these additional services are not required for the auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... * Cases for consideration of extension of Letter of Permission (LoP)s i.r.o units in SEZs are governed by Rule 19(4) of SEZ Rules. * Rule 19(4) states that an LoP shall be valid for one year. First Proviso grants power to DCs for extending the LoP not exceeding 2 years. Second Proviso grants further power to DCs for extending the LoP for one more year but subject to the condition that two-thirds of activities including construction, relating to the setting up of the Unit is complete and a Chartered Engineer's certificate to this effect is submitted by the entrepreneur * Extensions beyond 3rd year (in cases where two-third activities are not complete) and 4th year are granted by BoA. * BoA can extend the validity for a period of one year at a time. * There is no time limit up to which the Board can extend the validity (i) Request of M/s. Lupin Ltd., a unit in MIHAN SEZ, for extension of Letter of Permission (LoP) beyond 22nd April 2017 The Board, after deliberations, extended the validity of the LoP up to 22nd April, 2018. (ii) Request of M/s. Sarnamoy Plastic Sack Mfg. Pvt. Ltd., a unit in Falta SEZ, for extension of Letter of Approval (LoA) beyond 27th December, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 2, MIDC, Phase 1, Hinjewadi, Mulshi Taluka, Pune, Maharashtra, over an area of 9.15 hectares. The Board, after deliberations, approved the proposal for setting up of a sector specific Special Economic Zone for IT/ITES at Plot No. 2, MIDC, Phase 1, Hinjewadi, Mulshi Taluka, Pune, Maharashtra, over an area of 9.15 hectares. (ii) Request of M/s. Nalanda Shelter Pvt. Ltd. for setting up of sector specific SEZ for IT/ITES at Sr. No. 129(P), 130(P), 131(P), Near Rajiv Gandhi Infotech Park, Hinjewadi, Phase-1, Pune, Maharashtra, over an area of 3.4659 hectares. The Board, after deliberations, approved the proposal for setting up of a sector specific Special Economic Zone for IT/ITES at Sr. No. 129(P), 130(P), 131(P), Near Rajiv Gandhi Infotech Park, Hinjewadi, Phase 1, Pune, Maharashtra, over an area of 3.4659 hectares. (iii) Request of M/s. Phoenix IT City Private Limited for setting up of sector specific SEZ for IT/ITES at Survey No. 53/Paiki/Part, Gachibowli Village, Serilingampally Mandal, Ranga-Reddy District, Telangana, over an area of 1.78 hectares. The Board, after deliberations, approved the proposal for setting up of a sector specific Special Economic Zone for IT/ITES ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16 decided that provisions of Rule 74A shall not apply to SEZ Units that do not exit or opt out of the SEZ Scheme by transferring its assets and liabilities to another person and the SEZ Unit continues. to operate as a going concern in the situations mentioned above. The UACs concerned, may consider such requests under Rule 19(2) of the SEZ Rules, 2006. In so far as Business Transfer Agreement is concerned, it was explained that certain acquisitions happen globally as a result of Business Transfer Agreement which result in transfer of the SEZ unit of the Indian company on a going concern basis to the acquirer.. The BOA decided that such cases resulting in change of ownership would be decided on merits by the Board of approvals on a case to case basis. * Proposal to incorporate the above decision of BoA in SEZ Rules, 2006 has been approved and was sent to DLA for vetting. (i) Request of M/s. Solar Exports, a unit in Surat SEZ for change of partnership deed and shareholding pattern. The Board noted that the existing entrepreneur was under scrutiny by Income Tax Authorities and therefore, after deliberations, rejected the proposal. (ii) Request of M/s. Stellar Diamond, a unit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess continuity of the SEZ activities with unaltered responsibilities and obligations for the altered developer entity; (ii) Fulfillment of all eligibility criteria applicable to developers, including security clearances etc., by the altered developer entity and its constituents; (iii) Applicability of and compliance with all Revenue / Company Affairs /SEBI etc. rules which regulate issues like capital gains, equity change, transfer, taxability etc. (iv) Full financial details relating to change in equity/merger, demerger, amalgamation or transfer in ownership etc. shall be furnished immediately to Member (IT), CBDT, Department of Revenue and to the jurisdictional Authority. (v) The Assessing Officer shall have the right to assess the taxability of the gain/loss arising out of the transfer of equity or merger, demerger, amalgamation, transfer and ownerships etc. as may be applicable and eligibility for deduction under relevant sections of the Income Tax Act, 1961. (vi) The applicant shall comply with relevant State Government laws, including those relating to lease of land, as applicable. (vii) The developer shall furnish details of PAN and jurisdictional assessing officer of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (vii) Request of M/s. Shriram Properties and Infrastructure Private Limited developer for sector specific SEZ for IT/ITES at Perungulathur, Chennai, for transfer of shareholding pattern of the company The Board, after deliberations, approved the request for transfer of shareholding pattern of the company, subject to following conditions:- (i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered developer entity; (ii) Fulfillment of . all eligibility criteria applicable to developers, including security clearances etc., by the altered developer entity and its constituents; (iii) Applicability of and compliance with all Revenue / Company Affairs /SEBI etc. rules which regulate issues like capital gains, equity change, transfer, taxability etc. (iv) Full financial details relating to change in equity/merger, demerger, amalgamation or transfer-in ownership etc. shall- be furnished immediately to Member (IT), CBDT, Department of Revenue and to the jurisdictional Authority. (v) The Assessing Officer shall have the right to assess the taxability of the gain/loss arising out of the transfer of equity or merger, demerger, amalgama ..... X X X X Extracts X X X X X X X X Extracts X X X X
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