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1. What is a Special Economic Zone (SEZ)?
SEZs are specifically demarcated areas within the country where raw materials and capital goods can be imported duty free from abroad or the domestic market and a special package of tax holiday and incentives are given with a view to boost exports from the home country. Manufacturing and Services operations are allowed in a SEZ.
2. Who can establish SEZs?
Any private/public/joint partnership company or State Government or its agencies can set up a Special Economic Zone (SEZ).
3. Where is the complete SEZ Policy contained ?
The complete SEZ policy is contained in the SEZ Act of India 2005. This can be downloaded from the website www.sezindia.nic.in along with the rules of the Act.
4. Is 100 % Foreign Direct Investment allowed in the SEZ?
Yes. FDI companies can also repatriate dividend subject to dividend tax. (Currently 10 %). Each year a minimum 10 % of profits must be transferred to the general reserve and the balance can be allocated by the company.
5. Who is responsible for the maintenance of the SEZ
The Developer is responsible for the maintenance of the SEZ. The Development Commissioner monitors the performance of the Developer.

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