NEW DELHI: The government has amended the Special Economic Zone (SEZ) Rules to permit the demarcation of a portion of the built-up area in an IT/ITES (Information Technology/Information Technology Enabled Services) SEZ as a non-processing area.
The decision was announced through a notification issued by the Commerce and Industry Ministry on December 6. “A non-processing area may be used for setting up and operation of businesses engaged in IT/ITES, and at such terms and conditions as may be specified by the Board of Approval,” the notification stated.
However, repayment of tax concessions associated with the non-processing area will be required. The repayment of tax benefits will be determined by calculating the benefits provided for the processing area of the SEZ.