What is the main motive of starting specials economic zone ( SEZ ) and What is difference between SEZ unit and STPI.

 What is the difference between SEZ unit and STPI.

What is the main motive of starting a specials economic zone ( SEZ ) and  What is difference between SEZ unit and STPI.

SEZ अधिनियम के मुख्य उद्देश्य हैं  घरेलू उद्यमों और निर्माताओं को एक विशेष क्षेत्र प्रदान करने के लिए वर्ष 2000 में भारत में पेश किया गया था, ताकि वे वैश्विक निर्माताओं के साथ प्रतिस्पर्धा कर सकें।

What is the difference between Special Economic Zone (SEZ) and Software Technology Parks of India (STPI).

The main motive is Increasing software export from India creating more jobs boosting GDP and developing our country.

What is the difference between SEZ unit and STPI unit? Here is some point:-

1. Location: STPI units can set up operations in any location in the country. SEZ units are restricted to a designated area.

2. Business operations type:- STPI is limited to only IT industries while SEZ includes all kinds of industries like manufacturing & technology, production, core engineering & every other.

3. Tax benefit:- There is no special tax benefit in the stip unit in the current FY.

The direct tax benefits for SEZ units include a 100 percent income tax exemption on export income under Section 10AA of the Income Tax Act for the first five years, 50 percent for the next five years thereafter, and 50 percent of the ploughed back export profit for five more years.

GST benefit Any supply of goods or services or both to a Special Economic Zone developer/unit will be considered to be a zero-rated supply.

That means these supplies attract Zero tax rate under GST. In other words, supplies into SEZ are exempt from GST and are considered as exports.

4. Also there are few differences in functional and working style.