Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: articles on VAT and GST in India :: form 3cd :: cpt :: VAT RATES :: ACCOUNTING STANDARD :: empanelment :: Central Excise rule to resale the machines to a new company :: TDS :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
« News Headlines »
 How to claim income tax refund
 How to time your buys to have best of two tax regimes
 Here's why you must always check Form 26AS before filing tax return
 Want to file your income tax return after June 30? Having Aadhaar card is a must
 Timeline for filing of tax returns extended by two months
 Top 5 common mistakes to avoid while filing your income tax returns
 GST rollout on July 1: Deadline for filing tax returns extended
 What is GST?
 Income-tax (15th Amendment) Rules, 2017?
 Banks get a breather as GST Council extends deadline for tax filing
 Income Tax filing: Your easy guide in 7 steps

SEZ tag may help Posco save Rs 10,718 cr in taxes
December, 18th 2006

Korean steel major Posco would save Rs 10,718 crore in tax revenues on its Indian investment plans, if the government approves its proposal to set up a special economic zone (SEZ) in Jagatsinghpur, the location of its 12 million tonne steel plant.

According to study conducted by National Council for Applied Economic Research (NCAER) on behalf of Posco India, the companys total tax liability would be Rs 1,74, 971 crore over a 35-year period. But this would still be Rs 10,718 crore less than the tax liability of the company in the event the steel plant comes up in a domestic tariff area (DTA). On an annual basis, this means the Centre and state governments could lose a total of Rs 300 crore from the Posco project, that proposes to invest $12 billion for setting up a steel production facility in Orissa.

According to sources, the tax forgone by the government does not justify granting the project SEZ status as the incentive schemes have been formulated for promoting export oriented activities, which help in generation of foreign exchange.

Though the Orissa government has cleared Korean steel makers SEZ proposal and board of approval in the union commerce ministry has given in-principle clearance to it, the final nod from the government is still awaited, for the proposed multi-product SEZ. According to the NCAER report, the state would be bigger losers from the project as the company may be able to save Rs 6,007 crore on state taxes if it gets the SEZ status. The state taxes includes tax on sales, tax on capital goods and on the sharing of union taxes.

As per the proposal given by Posco, the SEZ would come up in a land area of 4,004 acres. About 99% of the SEZ will be processing area allocated to Posco-Indias steel works units and other units. An additional area of 250 acres would be developed by the company for downstream activities.

The company has also proposed to develop massive infrastructure inside its SEZ and outside, including development of a minor port with raw material berth and product berths, a power plant of 1,300mw capacity, water facility to treat 99,000 tonnes per day (tpd) in first phase, railways and road inside the SEZ. It will also develop access to to the state railways and roadways network, from the project.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions