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: TDS :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: form 3cd :: ACCOUNTING STANDARD :: due date for vat payment :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: VAT RATES :: VAT Audit
 
 
Budget Extravaganza »
 Government should reinstate wealth tax in Budget 2017
 With demonetisation inducing tax compliance will PM Modi cut tax rates in Budget 2017?
 State plan budget utilisation in Odisha
 Maharashtra wants budget advanced to February
 Coastal economic zones may get 10-year tax exemption in next Budget
 Why advancing the Union Budget date may not make much difference
 Govt keen 2017-18 budget should not clash with polls: Arun Jaitley
 Finance Ministry seeks industry suggestions on taxation for Budget
 Budget should focus on fiscal firm up
 Finance ministry keen to present Budget on February 2 or earlier
 Poor railway performance may mar merged Budget

Govt's net gain from special economic zones: Study
February, 04th 2010

While the Central Board of Excise and Customs (CBEC) has found that Special Economic Zones (SEZ) have led to Rs 1,75,847 crore worth of revenue losses, a study with the Commerce Ministry has said instead that the Government's net gain from SEZs was Rs 62,907 crore.

It also said the Centre's overall tax earnings from SEZs, excluding State taxes, were Rs 65,540 crore.

The study, carried out on the Ministry's behalf by PricewaterhouseCoopers (PwC), looked into the CBEC findings. The Commerce Ministry would now take this up with the Finance Ministry for discussions including the Budget-related ones, sources told Business Line.

The CBEC said the revenue foregone on raw materials used for exports were Rs 77,792 crore. But the PwC study negated this as Government schemes allow duty refund on raw material imports for exports.

While the CBEC said direct tax losses on export profits from SEZs were Rs 57,531 crore, the new study discounted this saying the Government would not have got this revenue without SEZs. Besides, SEZ investments would have gone to EOUs and STPI units as they enjoy direct tax exemption on exports till March 31, 2012.

On the CBEC's claim that the Government incurred losses of Rs 40,164 crore due to indirect tax losses on development on SEZs, PwC's calculation found the losses were only Rs 2,633 crore. CBEC used projected investments in SEZs to arrive at their number and calculated indirect taxes at 26 per cent.

While the SEZs are exempted from CVD, there is an average customs duty of 3 per cent imposed on them. Taking this into account, the revenue loss due to indirect taxes on SEZ investments are only Rs 2633 crore.

SEZs generated an Additional Economic Activity (AEA) of Rs 3,28,500 crore, including investments of Rs 99,050 crore, exports of Rs 1,76,500 crore and domestic sales of Rs 52,950 crore.

The Rs 65,540-crore tax earnings by the Centre from SEZs, includes Rs 36,135 crore from SEZ-generated AEA and Rs 24,505 crore from SEZs domestic sales, barring the profits. Also, seven lakh employees in SEZs, earning an average salary of Rs 2.5 lakh a year and paying 28 per cent income tax, contributed Rs 4,900 crore to the exchequer.

Therefore, subtracting the notional tax loss of Rs 2,633 crore from the total tax revenues of Rs 65,540 crore, the Government's net gain from SEZs is Rs 62,907 crore.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 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