समाचार में क्यों
- A draft government note has recommended allowing Indian Rupee payments for services provided by Special Economic Zone (SEZ) units to the Domestic Tariff Area (DTA).
मुख्य शब्द
Domestic Tariff Area (DTA)
Area within India outside Special Economic Zones where normal customs and tax laws apply.
Special Economic Zone (SEZ)
Designated duty-free enclave treated as foreign territory for trade operations and tariff purposes.
What is the Special Economic Zones Act, 2005?
- Central legislation designed to establish duty-free enclaves considered foreign territory for trade operations, duties, and tariffs.
- Section 2(z) defines 'supplies' and governs the financial settlement terms for goods and services rendered by SEZ units to DTA entities.
Key changes proposed
- Before: Section 2(z) mandated that proceeds from SEZ-to-DTA service supplies must be realised strictly in foreign exchange, despite goods being exempt from this rule.
- After: The draft note permits domestic service transactions from SEZ units to DTA entities to be settled directly in Indian Rupees (INR).
Why it matters
- Removes procedural friction and foreign exchange hedging costs for domestic firms sourcing IT and business services from SEZs.
- Promotes local currency settlement in line with broader rupee internationalisation and domestic economic integration goals.
प्रीलिम्स तथ्य
- Supply of goods from SEZ to DTA did not require mandatory forex realization, unlike service supplies under Section 2(z).
मेंस चर्चा
- Easing rupee realization for domestic SEZ service supplies improves service sector competitiveness and reduces transaction overheads.
स्रोत: Economic Times
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