Which of the following is incorrect regarding Special Economic Zones SEZ ........

Economic and Social Issues industrial and labour policy

Which of the following is incorrect regarding Special Economic Zones (SEZ)?

They have full freedom for subcontracting

The domestic sales from the SEZ are exempt from all kinds of custom duties

There is no routine examination by the custom authorities

The corporation in SEZs will not have to pay any income tax on their profits for the first five years and only 50% of the tax for 2 more years thereafter.

None of the options given above

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Explanation:

The domestic sales from the SEZ are subject to full custom duties and import policy is in force, when they sell their produce to domestic markets. Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units. 100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.