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

Under the Special Economic Zones Act, 2005, the Board suspends a Developer's letter of approval after due process. For what maximum period can the suspension of the letter of approval run, with an Administrator managing the zone?

The suspension of a Developer's letter of approval can last for a period not exceeding one year. During this time an Administrator manages the zone, and the zone vests in the Administrator for up to one year or until the letter of approval is transferred, whichever is earlier.

  1. ASix months
  2. BOne yearCorrect
  3. CTwo years
  4. DThree years

Explanation

The Board may suspend the letter of approval for a period not exceeding one year and appoint an Administrator. The zone vests in the Administrator for up to one year or until the letter of approval is transferred, whichever is earlier. Six months, two years and three years are not the statutory limit.

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