Vipin Parashar
Associate General Manager Hr Adani Energy
Sez Process Manager

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Dear sir, Is labour cess exempted in SEZ in Gujarat?

As per Section 21 of SEZ Act, all State taxes, fees cess etc are exempted.

In Karnataka, the state government has exempted the Labour Cess (Refer attachment Page 12 Point d)

Further as per Rule 5 (5) of Chapter II of SEZ Rules 2006 regarding procedure for establishment of SEZ, the State Government also has been directed to endeavor that the following are made available in the State for the proposed SEZ units and developer before recommending any proposal for SEZ to Government of India for approval:

a) exemption from the State and local taxes, levies and duties, including stamp duty, and taxes levied by local bodies on goods required for authorized operations by a unit or developer, and the goods sold by a unit in the domestic tariff area except the goods procured from domestic tariff area and sold as it is;

In view of the above, there should be exemption for payment of Labour Cess in SEZ in Gujarat also. We need the details of the same.

From India, Ahmadabad
Establishments in SEZs are not exempted from BOCW Cess. State Government has no power to exempt. Only the Central Government can grant exemption under section 6 of the BOCW Welfare Cess Act, 1996

From India, Chandigarh
Labour Cess is not applicable in SEZs of Gujarat stateThe view of revered J Partap are clarified that SEZ Act is a central act and Gujarat SEZ Act is also there which exempt fee,levies duties from payment and BOCW Cess is a levy as per Hon'ble SC judgement and is exempted from Cess.It is a practical experience as many of company's units are in SEZ Gujarat and are exempted from BOCW Cess.Section 6 of BOCW Cess Act says about units in places other than SEZ for which Central government's permission is required that too if establishment is paying amount in other form for the welfare of building and other construction workers and not otherwise.
From India, Ahmedabad
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