SEZs norms in for further revamp
The Centre plans to amend rules to allow units in Special Economic Zones to use old machinery and still qualify for tax concessions, reports PTI from New Delhi.
Earlier the government had prohibited use of second hand machinery in SEZs to prevent migration of units from Domestic Tariff Area to the tax free zones. “Amendments have been made in the Income Tax Act and now units will be allowed to use old machinery up to 20 per cent of their capital goods requirement. The changes in the Act will be notified in the next 3-4 weeks,” a senior Commerce Ministry official said.
The issue is currently being looked at by the Revenue Department. The rules have been changed on request mainly from technology companies who wanted to shift some used machinery from their operations outside India.