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CMA Final · Indirect Tax Laws and Practice · Special Economic Zone Scheme

Under Section 4 of the SEZ Act, 2005, which statement about notification of a Special Economic Zone is correct?

After the letter of approval is granted, the Developer submits the exact particulars of the identified area to the Central Government, which then notifies the area as an SEZ once requirements are satisfied. Existing Zones are deemed notified.

  1. AAfter notifying the Zone, the Central Government cannot add any further area to it
  2. BThe Developer submits exact particulars of the identified area to the Central Government after the grant of the letter of approvalCorrect
  3. CAn existing Special Economic Zone must be re-notified before the Act applies to it
  4. DThe Board, not the Central Government, notifies the identified area as an SEZ

Explanation

Section 4(1) requires the Developer, after the letter of approval is granted, to submit exact particulars of the identified area to the Central Government, which may then notify it. An existing Zone is deemed notified, and additional area may be notified later by the Central Government.

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