The government notified clarification on the issues flagged by NASSCOM relating to IT/ITES SEZ units.
The Finance Ministry while clarifying the issue to enable cross utilization of employees as well as assets of SEZ units on a temporary basis said that rule 70 of the SEZ Rules deals in delegation of power to the Development Commissioner to issue Identity cards to the entrants of SEZ.
In view of provisions of rule 70, DCs can issue temporary Identity cards to the casual visitors and contractors. Accordingly, if a unit wishes to cross utilize employees it can be done only through extant provision under Rule 70 through issue of temporary identity cards.
The government addressed the issue regarding cross utilization of assets and clarified that it is already covered under provisions of Section 29 of the SEZ Act, 2005 read with Rule 34 and Rule 38 of the SEZ Rules, 2006.
It was clarified that clearance of goods from SEZ to DTA is treated as import. As per Customs law, the valuation of imported goods is based on the transaction value. The provisions of Rule 49 only provide a mechanism to calculate the depreciated value of used capital goods to be cleared to DTA.
Further, it was also clarified that the value of such goods cleared from SEZ to DTA for Customs valuation purposes would always be based on transaction value and other relevant provisions of Customs law.
“Rule 51 prescribes the procedure for temporary removals in DTA for removal of goods for the activities covered under sub-rule 1 to 3 of rule 50. Thus, there is no ambiguity and the extant provisions should be followed by all the SEZs,” the government clarified.
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