Export Promotion Council for EOUs & SEZ (EPCES) arranged a meeting of prominent EOUS/SEZ Units/SEZ Developers with Hon’ble Commerce & Industry Minister on 4th March 2020 at New Delhi to discuss the issues of EOUs/SEZs/SEZ Developers.
Hon’ble Commerce & Industry Minister Shri Pyush Goyal said that Committee headed by Shri Baba Kalyani Chairman & Managing Director Bharat Forge Ltd has made his recommendation based on the inputs from various industries, State holders and are under consideration. Hon’ble Commerce & Industry Minister patientlyconsidered the issues and assured that issues will be resolved in the interest of the exporting community. Shri Piyush Goyal, Hon’ble Commerce & Industry Minister have kindly agreed to meet EOUs/SEZ sector in the month of March/April 2020.
Shri Bhuvnesh Seth, Vice Chairman EPCES thanked Hon’ble Commerce & Industry Minister Shri Piyush Goyal for giving them an opportunity to highlight the issues of EOUs/SEZs/SEZ Developers. Vice Chairman EPCES said that EOUs and SEZs are the engines of economic growth of the country and this sector is generating huge export, investment and employment for the country.
Shri Bhuvnesh Seth further said that Export Promotion Council for EOUs & SEZs recognise the efforts of EOUs/SEZs/SEZ Developers by presenting EPCES Export Award for their excellent export performance. The following issues were discussed as under:-
1.Proposed Tax Collection at Source (TCS) on Sale of Goods –Clause 93 of FinanceBill 2020 proposed to insert sub-section (1H) in Section 206 of the Income TaxAct, 1961. A clarification required.
- A. As per the proposed provision, Seller having annual turnover of more than Rs.10Crores has to collect tax on Sale of Goods at 0.10% from the Buyer (1% in case ofBuyer not having PAN) of the sale consideration exceeding Rs.50 lakhs as income-tax.
The SEZ sector desire that their export sales may be excluded from the proposed TCS provisions because as per the provision they have to collect TCS on their Export Sales from their overseas/foreign buyers.
- Imposition of Health Cess on sale of medical devices (Needles) by EOUs. A
clarification is required. Ref: Department of Revenue Notification No.8/2020-
Customs dated 02.02.2020.
- Income Tax exemption to EOUs and SEZs
- a) Government may consider IT benefits to developers of projects that have alreadyobtained formal approvals before 31st March, 2017, as land was already inpossession by making substantial investments.
- b) Government may consider allowing SEZ units to sell into the DTA on achieving 20%
positiveNFE on the basis of duty foregone during import.
3.Issues related to GST
(i) Implementation of refund mechanism for GST to SEZs units and EOUs required to be automatic mode with subject and condition as applicable.
(ii) The supplying material under non-LUT a mechanism to be put in the place to remove difficulties of such suppliers to SEZs units. 30% supplies are affected due to this.
- Issues – Ministries of Commerce and Industry
- EOUs and SEZs should be treated at par for supplies for exports and DTA.
- Operation of more than two units as separate unit/companies/JV should be allowed in the same premises.
- Allowing of Job Works. Currently SEZ units are allowed to perform job works only for SEZ/EOU units. SEZ units are not allowed to perform job works to other DTA units. Government may consider allowing SEZ units to perform job works for DTA units also to utilize their idle fixed assets, infrastructural capacity.
The delegation was led by Shri Bhuvnesh Seth, Vice Chairman EPCES and was attended by Shri Senthil Nathan S., Dy. Secretary SEZ, Shri Vilas Gupta, Regional Chairman EPCES NSEZ, Shri Alok Mukherjee, Member EPCES CGC, Shri Srikanth Badiga, Member EPCES CGC, Shri Sunil Puri, Member EPCES and Shri O.P. Kapoor, Regional Director EPCES NSEZ.
Hon’ble Commerce & Industry Minister, Shri Piyush Goyal (Centre), From his left: Shri Bhuvnesh Seth, Vice Chairman EPCES, Shri Vilas Gupta, Regional Chairman EPCES NSEZ, Shri Alok Mukherjee, EPCES CGC members, Shri O.P. Kapoor, Regional Director EPCES NSEZ, From his right: Shri Srikanth Badiga, EPCES CGC member, Shri Sunil Puri, EPCES member and Shri Senthil Nathan S., Dy. Secretary SEZ, Deptt. of Commerce.