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

Under section 49 of the SEZ Act, 2005, the Central Government proposes to notify that a provision of a Central Act will not apply to all SEZs. Which statement is correct?

The draft notification must be laid before each House of Parliament for a total of thirty days. If both Houses agree to disapprove, it is not issued, and if both agree to modify, it is issued only in the modified form. It is not issued first and laid later.

  1. AA draft of the notification must be laid before each House of Parliament for a total period of thirty days, and it is issued only if the Houses do not disapprove it or may be issued in the form modified by both HousesCorrect
  2. BThe notification takes effect immediately on issue and is laid before Parliament afterwards
  3. COnly sections 54 to 56 of the SEZ Act can be disapplied by such notification
  4. DThe notification may also modify laws on provident funds and maternity benefits applicable in SEZs

Explanation

Section 49(2) requires the draft notification to be laid before each House for thirty days in total. If both Houses agree in disapproving it, it is not issued; if both agree on modification, it is issued in modified form. Sections 54 to 56 are the ones excluded from modification, and labour matters such as provident funds and maternity benefits are protected by the proviso.

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