« General » Open DEMAT Account in 24 hrs  Income Tax Refund (ITR) Status Check for FY 2024-25 (AY 2025-26) A Simple Guide  How to Use Barcode Inventory Software in TallyPrime Complete Step-by Step Guide for Businesses (2025)  How to Use Barcode Inventory Software in TallyPrime Complete Step-by-Step Guide for Businesses (2025)  Which Tally is Best for You in 2025? Complete Guide to TallyPrime, TallyPrime Edit Log & TallyPrime Server  How the IT & Technology Industry Can Use Tally Prime The Complete 2025 Guide to Smarter Finance, Billing & Automation  How to Create a Proforma Invoice in Tally: A Complete Step-by-Step Guide for 2025  Tally Prime and the Rise of Cloud-Native Accounting in India  Step-by-Step: Using Tally Prime for Financial Reports and Cash Flow  Zero Errors, Zero Hassle: How Tally Prime Reinvents Tax Compliance  Gold Price Today in South India Madurai, Hyderabad, Warangal & Kochi (10 Nov 2025)  How to Record Bank Statement Entry in Tally Prime «  Satyam has Rs 373 crore bank balance... SEBI debars 26 entities ... » No tax break to SEZ units June, 08th 2009 In an attempt to finally resolve any misgivings about the use of second-hand or used capital goods while setting up an SEZ unit, the government has issued an instruction saying that a company can now bring in as much second-hand capital equipment to a new special economic zone unit as it wants. The SEZ unit, however, will not be eligible for tax exemption if the ratio of used equipment exceeds 20 per cent of the overall capital investment. This is the third time the government has issued such a notification pertaining to the treatment of second-hand capital goods used in SEZs with respect to tax exemption under the Income Tax Act. In its instruction dated May 27, the commerce ministry outlined the guidelines for procurement of used capital goods from domestic tariff area (DTA) to SEZ units. Apart from clarifying that the developer is free to transfer as many second-hand capital goods as he wants, it also stated that prior approval of the Development Commissioner of that particular zone would be required. That, however, is just a formality, according to Vikram Bapat, executive director with international consultancy PricewaterhouseCoopers (PwC). This instruction is important especially for old IT companies setting up IT/ITES SEZs across the country, who might want to consolidate their existing software and technology parks (STPIs) on which theyve reaped tax benefits for the past 8-10 years with their new SEZs, he added. Given that these STPIs have already been suffering in the face of the ongoing global recession, it only makes sense to ease the cost burden of these companies by allowing them to transfer their existing capital goods from their STPIs, which are a part of the DTA to their SEZs. These SEZs will, however, still be able to avail of service tax benefits, if not income tax.