Developers need more time to think for SEZ
By Accommodation Times Bureau
Countries leading real estate firm estate firm seems to loose interest in SEZ (Special Economic Zone) projects. Almost 11 prevailing firm has asked more time to complete the ongoing construction. MIDC (Maharashtra Industrial Development Corporation) and other SEZ promoter have asked to give back their project in which Andhra Industrial Development Corporation is included.
The main reason the developers are giving for stepping back is the slowdown in economics, real estate sluggish market, minimum alternative tax burden, lethargic infrastructure response. Also one of the main reasons is relief of tax which is still indefinite. To look into the matter deeply and discuss Permittance Board will have a meeting on 23 November. It is an organization of 19 members which is solely responsible for SEZ related problems.
One of the official said, the reasons given by the developers are valid to an extent. The current direct tax and erratic rules of taxation can be the supreme reason. The developers are tensed with new draft TDS. According to new TDS draft discount of tax is only granted to current SEZ units where 100% relief on profit is only for five years and after completion its only 50%. TDS which is lately coming will take the place of 1961 income tax act.109