Question

Consider the following statements with respect to the advantages of SEZ

1. Duty free territory
2. Exceptions from labour laws
3. High quality infrastructure

Which of the above statements are correct

• A. 1 and 3
• B. 1 and 2
• C. 2 and 3
• D. 1,2 and 3

Answer 1

The correct option is D 1,2 and 3

Advantages of SEZ:

1. It is a duty free territory/outside customs territory - Tax exemption for initial 5 yrs and 50% exemption for the next 5 yrs
2. The output in and SEZ is predominantly for export -No import duty on any imported goods
3. Labour laws will be relaxed
4. Latest state of art infrastructure
5. The act provided for single window clearance ensuring better the ease of doing business in India