The export promotion council for 100 per cent export-oriented units (EOUs) and special economic zone (SEZs) units has requested the finance ministry to provide tax exemption to SEZ units under Section 10A of the Income Tax Act and to EOUs under Section 10B of the same Act without any time limit and conditions. It has also advocated removal of the clause applicable to EOUs till 2010 under Section 10B of the Act. A council delegation, headed by its chairman R. Veeramani, recently met revenue secretary Vineeta Rai here to discuss the problems being faced by these units. The delegation also included vice-chairman Sharad Jaipuria, and director-general L.B. Singhal. From the government side, besides Rai, member, Budget, S.K. Bhardwaj, CBDT member, Customs, P.R.V. Ramanan, were present.Veermani has informed the government representatives that the units have been undertaking exports to the tune of Rs 32,000 core, of which the share of EOUs is Rs 22,000 crore and that of SEZ’s Rs 10,000 crore. The council chairman also stated that when a domestic unit is converted into an EOU unit exemption under Section 10B must be continued. Jaipuria said both the EOUs and SEZs are basically operating within the same parameters and hence they should continue to enjoy tax exemption. (ENS)
