The correct answer is the Only b.

• The concessions and exemptions to the SEZ entrepreneurs include those on direct taxes but are granted for export and import activities and infrastructure development. Hence the statement is not correct.
• And they don't include dilution of any order, direction, the law on labour matters.
• Hence the correct statement is the Only b.

• An SEZ is an enclave within a country that is typically duty-free and has different business and commercial laws chiefly to encourage investment and create employment.
• The Parliament passed the Special Economic Zones Act in 2005 after many consultations and deliberations.
• The Act came into force along with the SEZ Rules in 2006.
• However, SEZs were operational in India from 2000 to 2006 (under the Foreign Trade Policy).
• Special Economic Zones Act, 2005
  • “It is defined as an Act to provide for the establishment, development, and management of the Special Economic Zones for the promotion of exports and matters connected therewith or incidental thereto.”
• The chief objectives of the SEZ Act are:
  • To create additional economic activity.
  • To boost the export of goods and services.
  • To generate employment.
  • To boost domestic and foreign investments.
  • To develop infrastructure facilities.
• SEZs Facilities & Incentives
  • The government offers many incentives for companies and businesses established in SEZs.
  • Some of the important ones are Duty-free import or domestic procurement of goods for developing, operating, and maintaining SEZ units.
  • 100% Income tax exemption on export income for SEZ units under the Income Tax Act for the first 5 years, 50% for the next 5 years thereafter, and 50% of the plowed back export profit for the next 5 years. (Sunset Clause for Units will become effective from 2020).
  • Units are exempted from Minimum Alternate Tax (MAT).
  • They were exempted from Central Sales Tax, Service Tax, and State sales tax. These have now subsumed into GST and supplies to SEZs are zero-rated under the IGST Act, 2017.
  • Single window clearance for Central and State level approvals.
  • There is no need for a license for import.
  • In the manufacturing sector, barring a few segments, 100% FDI is allowed.
  • Profits earned are permitted to be repatriated freely with no need for any dividend balancing.
  • There is no need for separate documentation for customs and export-import policy.
  • Many SEZs offer developed plots and ready-to-use space.
  • Apart from the firms operating in SEZs, developers of SEZs also receive many benefits and incentives from the government.