Larsen & Toubro Limited

It’s all about Imagineering

SEZ EXEMPTIONS STPI EXEMPTIONS EOU EXEMPTIONS

Income Tax holiday Not available Not Available
100% Income tax holiday for first five
years and 18.5% MAT to be paid

With new DTC, incentives will be on

Investment based rather than profit
based.
Customs,Excise,CST etc., Available Available
Service Tax Not available Not available
Services received within the SEZ are
only exempted from Service Tax.
Services received outside the SEZ but,
for the purpose of SEZ – Service Tax to
be paid and refund to be claimed
(getting refund is a cumbersome
procedure and not sure.

Softex submission and follow up is a Officer is available at Vijayawada Same as SEZ

bit cumbersome procedure. Need to and can avail door step service.
co-ordinate with DC’s office at Vizag
Registration charges, stamp duty etc., Available.(Pl refer Annexure-1 for Same as SEZ
exempted. benefits)

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 Larsen & Toubro Limited
It’s all about Imagineering

De-Notification Advantages

1. After De-notification, with IT park status can avail all the benefits available in SEZ scheme
except Income tax holiday & service tax. (With MAT implementation to SEZ’s, the benefit
of income tax has become less attractive and with DTC implementation from Apr’2014 will
further loose and get nullified. For the services received outside the SEZ, Service Tax to
be paid first and refund to be claimed, which is a cumbersome procedure)

2. Can start residential in 40% of total area ( with sale option), which is very important for the
companies operating from the premises. Land can be given to the IT units / others for
developing their own facility (with sale option) in the balance 60% area.

3. Can broad base the activities (can accommodate local BPO’s, companies doing domestic
projects etc.,) and development increases

4. Customers can sub-lease the premises without restrictions. For the SEZ space taken on
long lease with sale deed can sell the premises to others

5. Can avail all the benefits as mentioned in Annexure-1.

6. Shifting goods and manpower from one facility to other is easy..

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 Larsen & Toubro Limited
It’s all about Imagineering

Annexure-1 : Tier II Location benefits

• 100% reimbursement of stamp duty, transfer duty and Registration fee paid on
sale/lease deeds on the first transaction. This incentive is not available in case
Government land is allotted.

• 50% reimbursement of stamp duty, transfer duty and Registration fee paid on
sale/lease deeds on the 2nd transaction. This incentive is not available in case
Government land is allotted

• Admissibility of Industrial Power category tariff

• 25% power subsidy on power bills for a period of 3 years or Rs.30 lakhs which ever
is earlier, from the date of commencement of commercial operations.

• A subsidy of Rs.10 lakhs to the first five anchors IT / ITES companies employing
more than 250 employees in IT or 500 employees in ITES in any Tier-II location.

• Rs.15 Lakhs as recruitment assistance for employing minimum 100 employees

within two years of commencement of commercial operations in the Tier-II city.

• Reimbursement of 50% exhibition subsidy for participating in the

national/international exhibitions limited to 9 sq m space

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