The Direct Tax Code, in its present form may bring some relief to SEZs like the one being developed by Maharashtra Airport Development Company (MADC) at city outskirts. The deadline for the units to commence operations in a SEZ to avail profit-based tax benefit has been extended to 2014. The earlier deadline was March 2011.
Although a number of investors had been allotted land in MADC's Mihan-SEZ, only a single large unit Caliber Point, an outsourcing industry, has started operations. A smaller firm M/s E-Bix too has started work with an office in the central facility building within the SEZ. If the March 2011 deadline had been applicable, there were chances that none of the other units would have had got the exemption. Even ongoing construction has been stopped at many sites owing to slowdown.
MADC's vice-chairman-cum-managing director R C Sinha said a meeting with the investors had been convened at Mumbai on September 7. They will be asked to start construction work at the earliest so as to take advantage of the extended deadline, Sinha told TOI.
Meanwhile, another senior MADC official added that aircraft-maker Boeing, which is setting up the $100 million maintenance repair and overhaul depot in the SEZ, has indicated it would start work from December. It is expected that other units may start construction after rains or along with Boeing. He clarified that there was no specific communication from other firms.
"It all depends on how they can meet the March 2014 deadline ," said the official. Units coming after that can also get asset-based exemption.
Although a number of investors had been allotted land in MADC's Mihan-SEZ, only a single large unit Caliber Point, an outsourcing industry, has started operations. A smaller firm M/s E-Bix too has started work with an office in the central facility building within the SEZ. If the March 2011 deadline had been applicable, there were chances that none of the other units would have had got the exemption. Even ongoing construction has been stopped at many sites owing to slowdown.
MADC's vice-chairman-cum-managing director R C Sinha said a meeting with the investors had been convened at Mumbai on September 7. They will be asked to start construction work at the earliest so as to take advantage of the extended deadline, Sinha told TOI.
Meanwhile, another senior MADC official added that aircraft-maker Boeing, which is setting up the $100 million maintenance repair and overhaul depot in the SEZ, has indicated it would start work from December. It is expected that other units may start construction after rains or along with Boeing. He clarified that there was no specific communication from other firms.
"It all depends on how they can meet the March 2014 deadline ," said the official. Units coming after that can also get asset-based exemption.
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