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Q.

Companies who set up production units in SEZs do not have to pay taxes for an initial period of:


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a

2 years

b

3 years

c

4 years

d

5 years  

answer is D.

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Detailed Solution

The companies that set up their production units in the SEZ (or Special Economic Zones) do not have to pay taxes for the first five years.
With the main objective of attracting foreign companies and foreign investment, the central government of India has set up SEZs in several parts of the country. The economic laws of these zones differ from that of the rest of the country. The labour laws are flexible as well.
 
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