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Deferred
Duty Benefits
- Importers
of goods into India have to pay significant
duties at the time the goods are brought
into the country. For a company having
its operations within a FTWZ, the custom
duty would be payable only at the time
the commodities are sold into the DTA.
Hubbing
Opportunities
- Under
efficient infrastructure and superior
operational dynamics, companies can utilize
the FTWZ as a hub for its operations and
services to other countries and regions.
- Multi
national vendors can be located within
the FTWZ to facilitate imports whereby
the items imported from other countries
can be stored without paying duties till
the time they are actually moved into
the Domestic Tariff Area (DTA). Similarly,
domestic units located within the FTWZ
can facilitate exports.
Income
& Service tax benefits
- The
zone would provide exemptions on income
tax as highlighted in section 80IA of
the income tax act.
- Companies
providing services from within the zone
(such as logistics companies, warehouse/
storage providers, etc.) are exempt from
payment of service tax, thereby reducing
the logistics costs to users within the
zone.
Excise
Duty Exemptions
- All
capital goods, spares, DG sets, packing
materials etc. sourced from the domestic
market for utilization within the zone,
is exempt from excise duty, thereby providing
significant savings
Benefit
to Bulk Commodities such
as fertilizers, dry chemicals, etc
- Since the FTWZs would be in close proximity
to the ports, transportation of bulk commodities
can be made easier by delaying the requirements
such as bagging and containerising them.
Benefit
to Export Commodities
- Companies
dealing in exports can receive their bills
of lading on entering the FTWZ as all
the goods entering the FTWZ would be deemed
as exports.
Benefit
to Trading Exchanges
- FTWZ
can facilitate establishment of trading
exchanges such as London Metal Exchange
and MCX wherein global traders can use
the FTWZ as a hub for distribution thereby
reducing the cost of sourcing as the products
would be physically available within the
country.
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