Vidhi Codex

The Special Economic Zones Act, 2005

The Special Economic Zones Act, 2005

General200558 sections8 chapters

The Special Economic Zones Act, 2005, regulates the establishment, administration, and operation of dedicated duty-free enclaves called Special Economic Zones across the country. The legislation applies directly to federal and state government authorities, private infrastructure developers who build these designated zones, and the business entrepreneurs who set up commercial units within them. This law matters significantly because it drives rapid economic growth by offering developers and businesses substantial fiscal concessions, including tax holidays, duty-free imports, and single-window regulatory clearances. Ultimately, this encourages domestic and foreign investments, boosts national exports, creates jobs, and develops world-class infrastructure.

Start reading →Read full ActSections

Chapter I PRELIMINARY →

  1. 1Short title, extent and commencement.
  2. 2Definitions.

Chapter II ESTABLISHMENT OF SPECIAL ECONOMIC ZONE →

  1. 3Procedure for making proposal to establish Special Economic Zone.
  2. 4Establishment of Special Economic Zone and approval and authorisation to operate it to, Developer.
  3. 5Guidelines for notifying Special Economic Zone.
  4. 6Processing and non-processing areas.
  5. 7Exemption from taxes, duties or cess.

Chapter III CONSTITUTION OF BOARD OF APPROVAL →

  1. 8Constitution of Board of Approval.
  2. 9Duties, Powers and functions of Board.
  3. 10Suspension of letter of approval and transfer of Special Economic Zone in certain cases.

Chapter IV DEVELOPMENT COMMISSIONER →

  1. 11Development Commissioner.
  2. 12Functions of Development Commissioner.

Chapter V SINGLE WINDOW CLEARANCE →

  1. 13Constitution of Approval Committee.
  2. 14Powers and functions of Approval Committee.
  3. 15Setting up of Unit.
  4. 16Cancellation of letter of approval to entrepreneur.
  5. 17Setting up and operation of Offshore Banking Unit.
  6. 18Setting up of International Financial Services Centre.
  7. 19Single application form, return, etc.
  8. 20Agency to inspect.
  9. 21Single enforcement officer or agency for notified offences.
  10. 22Investigation, inspection, search or seizure.
  11. 23Designated Courts to try suits and notified offences.
  12. 24Appeal to High Court.
  13. 25Offences by companies.

Chapter VII SPECIAL ECONOMIC ZONE AUTHORITY →

  1. 31Constitution of Authority.
  2. 32Officers of Authority and other staff.
  3. 33Special provision for transfer of officers or other employees to Authority.
  4. 34Functions of Authority.
  5. 35Grants and loans by Central Government.
  6. 36Constitution of Fund and its application.
  7. 37Accounts and audit.
  8. 38Directions by Central Government.
  9. 39Returns and reports.
  10. 40Power to supersede Authority.
  11. 41Members, officers and other employees of Authority to be public servants.

Chapter VIII MISCELLANEOUS →

  1. 42Reference of dispute.
  2. 43Limitation.
  3. 44Applicability of provisions of this Act to existing Special Economic Zones.
  4. 45Person to whom a communication may be sent under this Act.
  5. 46Identity Card.
  6. 47Authorities responsible for administration.
  7. 48Protection of action taken in good faith.
  8. 49Power to modify provisions of this Act or other enactments in relation to Special Economic Zones.
  9. 50Power of State Government to grant exemption.
  10. 51Act to have overriding effect.
  11. 52Certain provisions not to apply.
  12. 53Special Economic Zones to be ports, airports, inland container depots, land stations, etc., in certain cases.
  13. 54Amendment to First Schedule.
  14. 55Power to make rules.
  15. 56Power to remove difficulties.
  16. 57Amendment of certain enactments.
  17. 58Savings.

SPECIAL FISCAL PROVISIONS FOR SPECIAL ECONOMIC ZONES →

  1. 26Exemptions, drawbacks and concessions to every Developer and entrepreneur.
  2. 27Provisions of Income-tax Act, 1961 to apply with certain modification in relation to Developers and entrepreneurs.
  3. 28Duration of goods or services in Special Economic Zones.
  4. 29Transfer of ownership and removal of goods.
  5. 30Domestic clearance by Units.

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