No sops for non-processing activities

New Delhi, Nov 17: No question of tax sops to non-processing activities, providing services to consumers outside the SEZ, arises as no developer has asked for such benefits, Commerce Secretary Gopal K Pillai told UNI today.

The remarks were in answer to a question about Finance Ministry having talks with the Commerce Ministry to frame a new set of norms, prescribing only those non-processing activities which are based on the needs of the SEZ unit, will qualify for tax sops.

''We have not received any such communication,'' he said adding ''why would we give tax sops to them (non-processing activities serving outside consumers) when they have not asked for it?'' According to the government notification, non-processing activities can be spread over not more than 65 per cent of the total area of the multi-product SEZ while in product-sepcific zones, the limit is set at 50 per cent.

UNI