IT SEZ developers get flexibility to use vacant space

The commerce ministry has made life easier for developers of special economic zones (SEZs) related to information technology (IT) and IT-enabled services (ITES) as the income-tax holiday given to them is being withdrawn.

The developers, basically real estate players such as DLF and Hiranandani Group, can now use their vacant spaces like domestic tariff areas (DTAs) for purposes other than IT and ITeS, subject to riders and a nod from the Board of Approval. A notification amending the SEZ Rules, 2006, issued by the ministry, said a part of the SEZ could be declared “non-processing area” where free-zone rules would not apply. The non-processing area, which has to be a complete floor, will free companies from various compliance rules that apply