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

Under the Special Economic Zones Act, 2005, after a Developer has been granted a letter of approval and submits particulars of the identified area, what may the Central Government do?

After the Developer submits exact particulars of the identified area following grant of the letter of approval, the Central Government may notify that area as a Special Economic Zone once it is satisfied that the requirements are fulfilled. It may later notify additional area as part of the same zone.

  1. ANotify the specifically identified area in the State as a Special Economic Zone, after satisfying itself that the requirements are fulfilledCorrect
  2. BDirectly authorise unit operations without any notification of the area
  3. COnly notify the area if the State Government itself submits the particulars
  4. DCancel the letter of approval of the Developer

Explanation

Section 4(1) provides that after satisfying itself that the requirements under section 3(8) and other prescribed requirements are met, the Central Government may notify the identified area as an SEZ. The Developer, not the State, submits the particulars. Additional area may also be notified later.

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