SEZ Employee Transfer Restrictions: Are These Rules and Benefits Accurate in Tamil Nadu?

Hi all,

I was verifying the SEZ compliance of one of the clients. During the discussion, the client mentioned certain restrictions in the movement of employees, such as:

a) Transferring old employees from a Non-SEZ unit to an SEZ unit (within the company).
b) Transferring newly joined employees from an SEZ unit to a Non-SEZ unit.
c) Movement of employees between two SEZ units of the company.

We were also informed that only "On Bench" employees can be transferred as stated above, and for other categories of employees, only up to 20% can be transferred. They are applying an 80:20 criteria similar to P&M in SEZ.

Is this correct? Are there any such restrictions? Is there any provision/case law/notification regarding this?

Kindly provide assistance on the above issue and also furnish us with a list of State government (Tamil Nadu) benefits available to SEZ units, particularly regarding VAT, Electricity duty, stamp duty, etc.

Thanks and Regards,
Vijay L
9840698612

Hello Vijay,

The movement between Non-SEZ to SEZ requires IUT (Inter-Unit Transfer) approval from the Development Officer (DO) of the respective SEZ to move major infrastructure items such as laptops, PCs, printers, scanners, etc. For other items, bills/invoices are required.