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1
MINUTES OF THE JOINT MEETING OF THE APPROVAL COMMITTEES FOR SEZs
The Joint Meeting of the Approval Committees was held on 21.09.2012 at 11.00 AM at VSEZ
Sub-Office, Hyderabad.
Members Present:
1) ShriY.V.S.T. Sai, IRS, Additional Commissioner of Income Tax, Hyderabad-II Commissionerate,
Hyderabad.
2) Shri M. DayaSagar, IRS, Additional Commissioner of Income Tax, Hyderabad-III Commissionerate,
Hyderabad.
3) Shri S. Viswanathan, IRS, Deputy Commissioner of Customs & CE, Hyderabad-III Commissionerate,
Hyderabad.
4) Smt. R. J. Haqqani, Assistant Commissioner (Technical), Hyderabad-IVCommissionerate, Hyderabad.
5) Shri P. V. Prasad, FTDO, O/o. Jt. DGFT, Hyderabad.
6) ShriG. Narsimlu, Assistant Director, District Industries Centre, Ranga Reddy District, Hyderabad.
7) Smt. N. Vijaya Lakshmi, AEE, APPCB, Hyderabad
8) Smt. T. Sri Bharathi, AEE, APPCB, Hyderabad
The Development Commissioner, VSEZ and Chair Person, Approval Committees welcomed the
Members and apprised them briefly about the proposals placed before the Committees for their
consideration. The items listed in the Agenda were discussed and following decisions were taken.
AGENDA Item No. 1: Ratification of the Minutes of the Joint Meeting of the Approval Committees
held on 31.08.2012.
The Approval Committee ratified the Minutes of the Joint Meeting of the Approval Committees
held on 31.08.2012.
APPROVAL COMMITTEE FOR M/s. SUNDEW PROPERTIES PVT. LIMITED, SPECIAL
ECONOMIC ZONE FOR IT/ITES AT MADHAPUR VILLAGE, SERILINGAMPALLY
MANDAL, RANGA REDDY DISTRICT, ANDHRA PRADESH
AGENDA Item No. 2 (a) :Proposal of M/s. Open Text Technologies Pvt. Limited, unit in M/s. Sundew
Properties Pvt. Limited, IT/ITES SEZ at MadhapurVillage, SerilingampallyMandal, Ranga Reddy
District, Andhra Pradesh for approval for expansion of their unit.
The Unit which is presently operating from 301,3rd
floor, Building no.14 wants to take additional space
of 32562 sft at 9th
floor of Building No.20 and expand its operations.
The Approval Committee discussed and approved the proposal subject to submission of
Additional Bond cum LUT.
AGENDA Item No. 2 (b) :Proposal of M/s. Ybrant Digital Limited, unit in M/s. Sundew Properties Pvt.
Limited, IT/ITES SEZ at MadhapurVillage, SerilingampallyMandal, Ranga Reddy for approval for list
of Services.
The Approval Committee noted the unit’s claim that they have both SEZ and DTA
Operations.
The list of services is approved as under:
2
(I) In respect of services specified in rule 4 of the Place of Provision of Services Rules, 2012, the
place where the services are actually performed is within the SEZ
Sl.No Taxable Service
1 Cleaning activity Service
2 Commercial Training or Coaching
Service
3 Courier Service
4 Erection, Commissioning or installation
Services
5 Management, Maintenance or repair
Service
6 Security agency’s Services
7 Technical inspection and certification
service
8 Technical Testing and Analysis Service
(II) In respect of services specified in rule 5 of the Provision of Services Rules, 2012, the place
where the property is located or intended to be located is within the SEZ
Sl.No Taxable Service
1 Architect services
2 Interior Decorator’s services
3 Renting of immovable property
(III) Other Services
Sl.No Taxable Service
1 Advertising Agency’s Service
2 Air Travel Agent’s Services
3 Airport Services
4 Banking and other financial service
5 Business support Services
6 Cargo handling service
7 Chartered Accountant’s Services
8 Clearing and forwarding agent’s services
9 Company Secretary’s Service
10 Computer network Service (Online information and
database access or retrieval Service)
11 Consulting Engineer’s Service
12 Cost Accountant’s Service
13 Custom House Agent’s Services
14 Forward Contract Service
3
15 General Insurance Service
16 Information Technology Software Services
17 Internet telecommunication services
18 Legal Consultancy Services
19 Man power recruitment or supply agency’s Service
20 Management or business consultant Services
21 Market research agency’s Services
22 Processing and clearing house services
23 Rail travel agent’s Service
24 Telecommunication Services
25 Transport of goods by air Services
26 Transport of goods in by rail Service
27 Transported of goods by road Service
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that where the specified services received in SEZ and used for the authorized
operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not
to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of
refund in terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
(c) The above categorization is indicative. The Specified Officer will take decision as per Notification
No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter
to Approval Committee.
AGENDA Item No. 2 (c) :Proposal of M/s. Ojoin Marketing (India) Pvt. Limited, unit in M/s. Sundew
Properties Pvt. Limited, IT/ITES SEZ at MadhapurVillage, SerilingampallyMandal, Ranga Reddy for
approval for change of name to M/s. Calliduscloud (India) Pvt. Limited.
The Approval Committee discussed and approved the proposal.
AGENDA Item No. 2 (d) :Proposal of M/s. Sundew Properties Pvt. Limited, IT/ITES SEZ at
MadhapurVillage, SerilingampallyMandal, Ranga Reddy for approval for list of Services not approved
earlier.
The Approval Committee noted the Developer’s claim that they have both SEZ and DTA
Operations.
The list of services is approved as under:
(III) Other Services
4
Sl.No Taxable Service
1 Banking and other financial service(based on
invoice)
2 Real Estate Agent Services
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that where the specified services received in SEZ and used for the authorized
operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not
to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of
refund in terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
(c) The above categorization is indicative. The Specified Officer will take decision as per Notification
No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter
to Approval Committee.
APPROVAL COMMITTEE FOR M/s. DLF COMMERCIAL DEVELOPERS LIMITED,
SPECIAL ECONOMIC ZONE FOR IT/ITES AT GACHIBOWLI VILLAGE,
SERILINGAMPALLY MANDAL, RANGA REDDY DISTRICT, ANDHRA PRADESH
AGENDA Item No. 3 (a) :Proposal of M/s. ValueMomentum Software Services Pvt. Ltd, unit in M/s.
DLF Commercial Developers Limited, IT/ITES SEZ at GachibowliVillage, SerilingampallyMandal,
Ranga Reddy District, Andhra Pradesh for approval for List of Services.
The Approval Committee noted the unit’s claim that they have only SEZ Operations.
The list of services is approved as under:
(I) In respect of services specified in rule 4 of the Place of Provision of Services Rules, 2012, the
place where the services are actually performed is within the SEZ
1 Cleaning activity Service
2 Commercial Training and coaching Service
3 Courier Service
4 Erection, Commissioning or installation services
5 Management, Maintenance or repair service ( in
respect of immovable properties)
6 Outdoor caterer’s Service (within the Zone)
7 Packaging Activity services
8 Security agency’s services
5
9 Technical inspection and certification service
(II) In respect of services specified in rule 5 of the Provision of Services Rules, 2012, the place
where the property is located or intended to be located is within the SEZ
Sl.No Taxable Service
1 Architect’s Services
2 Interior Decorator’s services
3 Works Contract Services
(III) Other Services
1 Advertising Agency’s Service
2 Air travel Agent’s Services
3 Banking and other financial service
4 Business auxiliary services
5 Business Exhibition Services
6 Business support services
7 Cargo Handling service
8 Chartered Accountant’ Service
9 Clearing and Forwarding agent’s services
10 Company Secretary’s Services
11 Computer network Services (Online information and
database access or retrieval Service)
12 Consulting Engineer’s service
13 Customs House Agent’s Service
14 Forward contract Service
15 General Insurance Service
16 Information Technology Software Services
17 Internet telecommunication services
18 Man power recruitment & supply agency’s Service
19 Management or Business consultant’s services
20 Public relation management Service
21 Rail Travel Agent’s Service
22 Scientific or Technical consultancy service
23 Supply of tangible goods services
24 Telecommunication Services
25 Transport of Goods by Air Services
26 Transport of Goods by Road Service
27 Travel Agent’s service
6
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that where the specified services received in SEZ and used for the authorized
operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not
to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of
refund in terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
(c) The above categorization is indicative. The Specified Officer will take decision as per Notification
No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter
to Approval Committee.
AGENDA Item No. 3 (b) :Proposal of M/s. Model N India Software Pvt. Ltd, unit in M/s. DLF
Commercial Developers Limited, IT/ITES SEZ at GachibowliVillage, SerilingampallyMandal, Ranga
Reddy District, Andhra Pradesh for approval for Additional List of Services.
The Approval Committee noted the unit’s claim that they have only SEZ Operations.
The Additional list of services is approved as under:
(I) In respect of services specified in rule 4 of the Place of Provision of Services Rules, 2012, the
place where the services are actually performed is within the SEZ
1 Commercial Training and coaching Service
(II) In respect of services specified in rule 5 of the Provision of Services Rules, 2012, the place
where the property is located or intended to be located is within the SEZ
Sl.No Taxable Service
1 Renting of immovable property
(III) Other Services
1 Advertising Agency’s Service
2 Computer network Services (Online information and
database access or retrieval Service)
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that where the specified services received in SEZ and used for the authorized
operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not
7
to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of
refund in terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
(c) The above categorization is indicative. The Specified Officer will take decision as per Notification
No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter
to Approval Committee.
AGENDA Item No. 3 (c) :Proposal of M/s. Anthelio Business Technologies Pvt. Ltd, unit in M/s. DLF
Commercial Developers Limited, IT/ITES SEZ at GachibowliVillage, SerilingampallyMandal, Ranga
Reddy District, Andhra Pradesh for approval for Additional List of Services.
The Approval Committee noted the unit’s claim that they have both SEZ and DTA
Operations.
The Additional list of services is approved as under:
(II) In respect of services specified in rule 5 of the Provision of Services Rules, 2012, the place
where the property is located or intended to be located is within the SEZ
Sl.No Taxable Service
1 Renting of immovable property
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that where the specified services received in SEZ and used for the authorized
operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not
to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of
refund in terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
(c) The above categorization is indicative. The Specified Officer will take decision as per Notification
No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter
to Approval Committee.
AGENDA Item No. 3 (d) :Proposal of M/s. Rockwell Collins (India) Enterprises Pvt. Ltd, unit in M/s.
DLF Commercial Developers Limited, IT/ITES SEZ at GachibowliVillage, SerilingampallyMandal,
Ranga Reddy District, Andhra Pradesh for approval for Additional List of Services.
The Approval Committee noted the unit’s claim that they have both SEZ and DTA
Operations.
8
The Additional list of services is approved as under:
(II) In respect of services specified in rule 5 of the Provision of Services Rules, 2012, the place
where the property is located or intended to be located is within the SEZ
Sl.No Taxable Service
1 Renting of immovable property
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that where the specified services received in SEZ and used for the authorized
operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not
to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of
refund in terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
(c) The above categorization is indicative. The Specified Officer will take decision as per Notification
No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter
to Approval Committee.
AGENDA Item No. 3 (e) :Proposal of M/s. CGI Information Systems and Management Consultants
Pvt. Ltd, unit in M/s. DLF Commercial Developers Limited, IT/ITES SEZ at GachibowliVillage,
SerilingampallyMandal, Ranga Reddy District, Andhra Pradesh for approval for List of Services.
The Approval Committee noted the unit’s claim that they have both SEZ and DTA
Operations.
The list of services is approved as under:
(I) In respect of services specified in rule 4 of the Place of Provision of Services Rules, 2012, the
place where the services are actually performed is within the SEZ
Sl.No Taxable Service
1 Cleaning activity Service
2 Commercial Training or Coaching
Service
3 Courier Service
4 Erection, Commissioning or installation
Services
5 Event management service
6 Management, Maintenance or repair
Service
9
7 Outdoor caterer’s Service (within the
Zone)
8 Packaging activity Service
9 Security agency’s Services
10 Technical inspection and certification
service
11 Technical Testing and Analysis Service
(II) In respect of services specified in rule 5 of the Provision of Services Rules, 2012, the place
where the property is located or intended to be located is within the SEZ
Sl.No Taxable Service
1 Architect services
2 Industrial or Commercial construction
Services
3 Interior Decorator’s services
4 Renting of immovable property
5 Site formation, clearing excavation and
earthmoving and demolition services
6 Works Contract services
(III) Other Services
Sl.No Taxable Service
1 Advertising Agency’s Service
2 Air Travel Agent’s Services
3 Airport Services
4 Banking and other financial service
5 Business auxiliary services
6 Business exhibition Services
7 Business support Services
8 Cargo handling service
9 Chartered Accountant’s Services
10 Clearing and forwarding agent’s services
11 Company Secretary’s Service
12 Computer network Service (Online information and
database access or retrieval Service)
13 Consulting Engineer’s Service
14 Cost Accountant’s Service
15 Credit rating agency’s services
16 Custom House Agent’s Services
17 Design services
18 Foreign Exchange Broker Service
19 Forward Contract Service
10
20 General Insurance Service
21 Information Technology Software Services
22 Insurance auxiliary services concerning general
insurance business
23 Intellectual property services
24 Internet telecommunication services
25 Legal Consultancy Services
26 Man power recruitment or supply agency’s Service
27 Management or business consultant Services
28 Market research agency’s Services
29 Port Services
30 Processing and clearing house services
31 Public relation Management Service
32 Rail travel agent’s Service
33 Real estate agent’s services
34 Storage & Ware Housing Service
35 Supply of Tangible goods services
36 Telecommunication Services
37 Transport of goods by air Services
38 Transport of goods in by rail Service
39 Transported of goods by road Service
40 Travel Agent’s Service
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that where the specified services received in SEZ and used for the authorized
operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not
to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of
refund in terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
(c) The above categorization is indicative. The Specified Officer will take decision as per Notification
No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter
to Approval Committee.
AGENDA Item No. 3 (f) :Proposal of M/s. NGAHR India Pvt. Ltd, unit in M/s. DLF Commercial
Developers Limited, IT/ITES SEZ at GachibowliVillage, SerilingampallyMandal, Ranga Reddy
District, Andhra Pradesh for approval for Additional List of Services.
The Approval Committee noted the unit’s claim that they have both SEZ and DTA
Operations.
11
The Additional list of services is approved as under:
(II) In respect of services specified in rule 5 of the Provision of Services Rules, 2012, the place
where the property is located or intended to be located is within the SEZ
Sl.No Taxable Service
1 Renting of immovable property
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that where the specified services received in SEZ and used for the authorized
operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not
to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of
refund in terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
(c) The above categorization is indicative. The Specified Officer will take decision as per Notification
No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter
to Approval Committee.
AGENDA Item No. 3 (g) :Proposal of M/s. Covidien Engineering Services Pvt. Ltd, unit in M/s. DLF
Commercial Developers Limited, IT/ITES SEZ at GachibowliVillage, SerilingampallyMandal, Ranga
Reddy District, Andhra Pradesh for approval for Additional List of Services.
The Approval Committee noted the unit’s claim that they have only SEZ Operations.
The Additional list of services is approved as under:
(I) In respect of services specified in rule 4 of the Place of Provision of Services Rules, 2012, the
place where the services are actually performed is within the SEZ
1 Courier Service
2 Technical inspection and certification service
3 Technical Testing and Analysis service
(III) Other Services
1 Banking and other financial service
2 Cargo Handling service
3 Clearing and Forwarding agent’s services
4 Company Secretary’s Services
12
5 Computer network Services (Online information and
database access or retrieval Service)
6 General Insurance Service
7 Intellectual property services
8 Market Research agency’s service
9 Supply of tangible goods services
10 Telecommunication Services
11 Transport of Goods by Air Services
12 Transport of Goods by Road Service
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that where the specified services received in SEZ and used for the authorized
operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not
to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of
refund in terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
(c) The above categorization is indicative. The Specified Officer will take decision as per Notification
No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter
to Approval Committee.
AGENDA Item No. 3 (h) :Proposal of M/s. DLF Assets Pvt. Ltd, Co-Developer for M/s. DLF
Commercial Developers Limited, IT/ITES SEZ at GachibowliVillage, SerilingampallyMandal, Ranga
Reddy District, Andhra Pradesh for approval for list of Goods for maintenance (transformer protection,
fire control, refilling of BA system, Exhaust, Lifts).
The Approval Committee discussed and approved the list of materials (Appendix-A).
AGENDA Item No. 3 (i) :Proposal of M/s. DLF Assets Pvt. Ltd, Co-Developer for M/s. DLF
Commercial Developers Limited, IT/ITES SEZ at GachibowliVillage, SerilingampallyMandal,
RangaReddy District, Andhra Pradesh for approval for procurement of 20 KL of Diesel for their SEZ for
ratification and 2400 KL for approval.
The Approval Committee discussed and ratified the procurement of 20 KL of Diesel and
approved 580 KL of Diesel for a period of 3 months. Further approval would be based on consumption
of the approved quantity.
AGENDA Item No. 3 (j) :Proposal of M/s. Pegasystems Worldwide India Pvt. Ltd, unit in M/s. DLF
Commercial Developers Limited, IT/ITES SEZ at GachibowliVillage, SerilingampallyMandal, Ranga
Reddy District, Andhra Pradesh for approval for Additional List of Services.
13
The Approval Committee noted the unit’s claim that they have only SEZ Operations.
The Additional list of services is approved as under:
(I) In respect of services specified in rule 4 of the Place of Provision of Services Rules, 2012, the
place where the services are actually performed is within the SEZ
1 Erection, Commissioning or installation services
2 Packaging Activity services
(III) Other Services
1 Cost Accountant’s Services
2 Design services
3 General Insurance Service
4 Information Technology Software Services
5 Insurance auxiliary services concerning general
insurance business
6 Real estate agent’s services
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that where the specified services received in SEZ and used for the authorized
operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not
to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of
refund in terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
(c) The above categorization is indicative. The Specified Officer will take decision as per Notification
No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter
to Approval Committee.
AGENDA Item No. 3 (k) :Proposal of M/s. DLF Assets Pvt. Ltd, Co-Developer for M/s. DLF
Commercial Developers Limited, IT/ITES SEZ at GachibowliVillage, SerilingampallyMandal, Ranga
Reddy District, Andhra Pradesh for approval for Additional list of services.
The Approval Committee noted the Co-Developer’s claim that they have only SEZ
Operations.
The Additional list of services is approved as under:
(II) In respect of services specified in rule 5 of the Provision of Services Rules, 2012, the place
where the property is located or intended to be located is within the SEZ
14
1 General Insurance Service (based on invoice)
2 Asset Management service
(III) Other Services
1 Business Exhibition service
2 Business Support service
3 Cargo handling service
4 Chartered Accountants Services
5 Clearing and Forwarding Agent services
6 Information Technology Software Services
7 Management or business consultant services
8 Manpower recruitment or supply agency’s
services
9 Supply of tangible goods services
10 Travel Agent’s Service
11 Health care service ( for emergency medical
care including ambulance service)
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that where the specified services received in SEZ and used for the authorized
operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not
to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of
refund in terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
(c) The above categorization is indicative. The Specified Officer will take decision as per Notification
No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter
to Approval Committee.
APPROVAL COMMITTEE FOR M/s. DIVYASREE NSL INFRASTRUCTURE PVT.
LIMITED, SPECIAL ECONOMIC ZONE FOR IT/ITES AT RAIDURGA VILLAGE,
SERILINGAMPALLY MANDAL, RANGA REDDY DISTRICT, ANDHRA PRADESH
AGENDA Item No. 4 :Proposal of M/s. Invesco (Hyderabad) Pvt. Ltd. Unit in M/s. Divyasree NSL
Infrastructure Pvt. Limited, IT/ITES SEZ at RaidurgaVillage, SerilingampallyMandal, Ranga Reddy
District, Andhra Pradesh for approval for Additional list of Services.
The Approval Committee noted the unit’s claim that they have only SEZ Operations.
15
The Additional list of services is approved as under:
(III) Other Services
1 Information Technology Software Services
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that where the specified services received in SEZ and used for the authorized
operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not
to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of
refund in terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
(c) The above categorization is indicative. The Specified Officer will take decision as per Notification
No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter
to Approval Committee.
APPROVAL COMMITTEE FOR M/s. APIIC LIMITED, SPECIAL ECONOMIC ZONE FOR
IT/ITES AT NANAKRAMGUDA VILLAGE, SERILINGAMPALLY MANDAL, RANGA
REDDY DISTRICT, ANDHRA PRADESH
AGENDA Item No. 5 (a) : Proposal of M/s. TSI Business Parks (Hyderabad) Pvt. Limited, Co-
Developer for M/s. APIIC Limited, IT/ITES SEZ at NanakramgudaVillage, SerilingampallyMandal,
Ranga Reddy District, Andhra Pradesh for approval for leasing out space to retail operators in their SEZ.
The Approval Committee discussed and approved as under:
Name of the Vendor Purpose Approx area
Prizm Payment Services IndusInd Bank ATM 200 sft in Ground Floor
Euronet Services India
Pvt. Limited
Citi Bank ATM 25 sft at Food Court
AGENDA Item No. 5 (b) :Proposal of M/s. TSI Business Parks (Hyderabad) Pvt. Limited, Co-
Developer for M/s. APIIC Limited, IT/ITES SEZ at NanakramgudaVillage, SerilingampallyMandal,
Ranga Reddy District, Andhra Pradesh for approval for Additional list of Services.
The Approval Committee noted the Co-Developer’s claim that they have only SEZ
Operations.
The Additional list of services is approved as under:
(II) In respect of services specified in rule 5 of the Provision of Services Rules, 2012, the place
where the property is located or intended to be located is within the SEZ
16
1 General Insurance (based on invoice)
(III) Other Services
1 Banking and other Financial Services (based
on invoice)
2 Real Estate Agent Services
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that where the specified services received in SEZ and used for the authorized
operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not
to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of
refund in terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
(c) The above categorization is indicative. The Specified Officer will take decision as per
Notification No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can
refer the matter to Approval Committee.
AGENDA Item No. 5 (c) : Proposal of M/s. Accenture Services Pvt. Limited, unit in M/s. APIIC
Limited, IT/ITES SEZ at NanakramgudaVillage, SerilingampallyMandal, Ranga Reddy District, Andhra
Pradesh for approval for list of Services.
The Approval Committee noted the unit’s claim that they have both SEZ and DTA
Operations.
The list of services is approved as under and for “air passenger transport service” Development
Commissioner may take the advice of Service Tax Commissioner:
(I) In respect of services specified in rule 4 of the Place of Provision of Services Rules, 2012, the
place where the services are actually performed is within the SEZ
Sl.No Taxable Service
1 Cleaning activity Service
2 Commercial Training or Coaching
Service
3 Courier Service
4 Erection, Commissioning or installation
Services
5 Management, Maintenance or repair
17
Service
6 Outdoor caterer’s Service (within the
Zone)
7 Packaging activity Service
8 Security agency’s Services
9 Technical inspection and certification
service
10 Technical Testing and Analysis Service
(II) In respect of services specified in rule 5 of the Provision of Services Rules, 2012, the place
where the property is located or intended to be located is within the SEZ
Sl.No Taxable Service
1 Architect services
2 Industrial or Commercial construction
Services
3 Interior Decorator’s services
4 Renting of immovable property
5 Site formation, clearing excavation and
earthmoving and demolition services
6 Works Contract services
(III) Other Services
Sl.No Taxable Service
1 Advertising Agency’s Service
2 Air Travel Agent’s Services
3 Airport Services
4 Banking and other financial service
5 Business auxiliary services
6 Business exhibition Services
7 Business support Services
8 Cargo handling service
9 Chartered Accountant’s Services
10 Clearing and forwarding agent’s services
11 Company Secretary’s Service
12 Computer network Service (Online information and
database access or retrieval Service)
13 Consulting Engineer’s Service
14 Cost Accountant’s Service
16 Custom House Agent’s Services
17 Design services
18 Foreign Exchange Broker Service
18
19 General Insurance Service
20 Information Technology Software Services
21 Intellectual property services
22 Internet telecommunication services
23 Legal Consultancy Services
24 Man power recruitment or supply agency’s Service
25 Management or business consultant Services
26 Market research agency’s Services
27 Port Services
28 Public relation Management Service
29 Rail travel agent’s Service
30 Storage & Ware Housing Service
31 Supply of Tangible goods services
32 Telecommunication Services
33 Transport of goods by air Services
34 Transport of goods in by rail Service
35 Transported of goods by road Service
36 Travel Agent’s Service
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that here the specified services received in SEZ and used for the authorized operations
are wholly consumed within the SEZ, the person liable to pay service tax has the option not to pay the
service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of refund in
terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
(c) The above categorization is indicative. The Specified Officer will take decision as per Notification
No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter
to Approval Committee.
APPROVAL COMMITTEE FOR M/s. PHOENIX INFOCITY PVT. LIMITED, SPECIAL
ECONOMIC ZONE FOR IT/ITES AT GACHIBOWLI VILLAGE, SERILINGAMPALLY
MANDAL, RANGA REDDY DISTRICT, ANDHRA PRADESH
AGENDA Item No. 6 (a) :Proposal of M/s. Phoenix Infocity Pvt. Limited, Developer, IT/ITES SEZ at
Madhapur Village, SerilingampallyMandal, Ranga Reddy District, Andhra Pradesh for approval for
Additional list of Services.
The Approval Committee noted the Developer’s claim that they have only SEZ Operations.
19
The Additional list of services is approved as under:
(III) Other Services
1
Business Support service
2 Banking and other Financial Services (based
on invoice)
3 Cargo handling Services
4 Clearing and Forwarding Agent services
5 Information Technology Software Services
6 Management or business consultant services
7 Manpower recruitment or supply agency’s
services
8 Real Estate Agent Services
9 Supply of tangible goods services
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that where the specified services received in SEZ and used for the authorized
operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not
to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of
refund in terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
(c) The above categorization is indicative. The Specified Officer will take decision as per Notification
No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter
to Approval Committee.
AGENDA Item No. 6 (b) : Proposal of M/s. iGate Global Solutions Limited (unit-2) for setting up of a
unit for IT/ITES in M/s. Phoenix Infocity Pvt. Limited, Developer, IT/ITES SEZ at Madhapur Village,
SerilingampallyMandal, Ranga Reddy District, Andhra Pradesh.
The Approval Committee discussed and approved the proposal subject to the exit of Patni
Computers Systems Limited.The exit of Patni Computers Systems Ltd to be informed to the Income Tax
Department.
AGENDA Item No. 6 (c) : Proposal of M/s. ValueMomentum Software Services Pvt. Limited, unit in
M/s. Phoenix Infocity Pvt. Limited, Developer, IT/ITES SEZ at Madhapur Village,
SerilingampallyMandal, Ranga Reddy District, Andhra Pradesh for approval for list of Services.
The Approval Committee noted the unit’s claim that they have only SEZ Operations.
The list of services is approved as under:
20
(I) In respect of services specified in rule 4 of the Place of Provision of Services Rules, 2012, the
place where the services are actually performed is within the SEZ
1 Cleaning activity Service
2 Commercial Training and coaching Service
3 Courier Service
4 Erection, Commissioning or installation services
5 Management, Maintenance or repair service ( in
respect of immovable properties)
6 Outdoor caterer’s Service (within the Zone)
7 Packaging Activity services
8 Security agency’s services
9 Technical inspection and certification service
(II) In respect of services specified in rule 5 of the Provision of Services Rules, 2012, the place
where the property is located or intended to be located is within the SEZ
Sl.No Taxable Service
1 Architect’s Services
2 Interior Decorator’s services
3 Works Contract Services
(III) Other Services
1 Advertising Agency’s Service
2 Air travel Agent’s Services
3 Banking and other financial service
4 Business auxiliary services
5 Business Exhibition Services
6 Business support services
7 Cargo Handling service
8 Chartered Accountant’ Service
9 Clearing and Forwarding agent’s services
10 Company Secretary’s Services
11 Computer network Services (Online information and
database access or retrieval Service)
12 Consulting Engineer’s service
13 Customs House Agent’s Service
14 Forward contract Service
15 General Insurance Service
16 Information Technology Software Services
17 Internet telecommunication services
21
18 Man power recruitment & supply agency’s Service
19 Management or Business consultant’s services
20 Public relation management Service
21 Rail Travel Agent’s Service
22 Supply of tangible goods services
23 Telecommunication Services
24 Transport of Goods by Air Services
25 Transport of Goods by Road Service
26 Travel Agent’s service
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that where the specified services received in SEZ and used for the authorized
operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not
to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of
refund in terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
(c) The above categorization is indicative. The Specified Officer will take decision as per Notification
No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter
to Approval Committee.
APPROVAL COMMITTEE FOR M/s. INFOSYS LIMITED, SPECIAL ECONOMIC ZONE
FOR IT/ITES AT POCHARAM VILLAGE, GHATKESAR MANDAL, RANGA REDDY
DISTRICT, ANDHRA PRADESH
AGENDA Item No. 7 (a) : Proposal of M/s. Infosys BPO Limited, unit in M/s. Infosys Limited,
IT/ITES SEZ at Pocharam Village, GhatkesarMandal, Ranga Reddy District, Andhra Pradesh for
approval for Reconstitution of Board of Directors.
Mr.SridarIyengar retired as Director
Mr.OmkarGoswami was appointed as Director.
The Approval Committee discussed and approved the proposal subject to submission of address
proof of new director.
AGENDA Item No. 7 (b) : Proposal of M/s. Infosys Limited, IT/ITES SEZ at Pocharam Village,
GhatkesarMandal, Ranga Reddy District, Andhra Pradesh for approval for procurement of 300 KL
Litres of Diesel.
The Approval Committee discussed and approved the procurement of 75 KL of Diesel for a
period of 3 months. Further allotment would be subject to proper utilization of the approved quantity.
22
APPROVAL COMMITTEE FOR M/s. APIIC LIMITED, SPECIAL ECONOMIC ZONE FOR
AEROSPACE AND PRECISION ENGINEERING INDUSTRIES AT ADIBATLA VILLAGE,
IBRAHIMPATNAM MANDAL, RANGA REDDY DISTRICT, ANDHRA PRADESH
AGENDA Item No. 8 (a) : Proposal of M/s. Tata Advanced Systems Limited, unit in M/s. APIIC
Limited, SEZ for Aerospace and Precision Engineering Industries at Adibatla Village,
IbrahimpatnamMandal, Ranga Reddy District, Andhra Pradesh for approval for sending loose parts of S-
92 Helicopter Cabins to M/s. Sikorsky Aircraft Corporation, USA for ratification.
The Approval Committee discussed and ratified the proposal.
AGENDA Item No. 8 (b) : Proposal of M/s. Samuha Engineering Industries Limited, Co-Developer for
M/s. APIIC Limited, SEZ for Aerospace and Precision Engineering Industries at Adibatla Village,
IbrahimpatnamMandal, Ranga Reddy District, Andhra Pradesh for approval for list of materials for their
SEZ(Roads, Drains, Water supply, Sewerage, Cable trenches, Sross Drainage, Nala lining, Street
lighting, and Electrification).
The Approval Committee discussed and approved the list of materials (Appendix-B).
APPROVAL COMMITTEE FOR M/s. FAB CITY SPV (INDIA) PVT. LIMITED, SPECIAL
ECONOMIC ZONE FOR SEMICONDUCTORS AT RAVIRYAL/SRINAGAR VILLAGES,
MAHESWARAM MANDAL, RANGA REDDY DISTRICT, ANDHRA PRADESH
AGENDA Item No. 9 (a) : Proposal of M/s. Solar Semiconductor Pvt. Limited, unit in M/s. FAB City
SPV (India) Pvt. Limited, SEZ for Semiconductors at Raviryala/Srinagar Villages, MaheswaramMandal,
Ranga Reddy District, Andhra Pradesh for approval for Generation of Solar Power.
The Unit was given approval for generation of Solar Power for self-consumption and sale of surplus sale
to SEZ units.
The Unit now represented that they want permission to sell to DTA area and contended that once power
is put on grid it is equivalent to DTA sale and hence such restriction of SEZ sale is unnecessary.
It was informed that they would meet NFE requirements as they also have module business.
They also contended that they have agreement with IREDA and State Government for DTA sale of
Power.
They further informed that they will get the benefit of subsidy to solar power from IREDA only if power
is sold outside and not for self-consumption.
They contended that it is a green power and needs support.
The Approval Committee discussed and contended that as per the guidelines of Power generation
and sale for SEZ Units, it is stipulated that only surplus power needs to be considered for sale in SEZ or
DTA area. Since the Unit will not be generating enough power for self-consumption, their request for
DTA sale of power will not be considered. Further the activity of generation and sale of solar power to
DTA area has no scope of export promotion or earning of foreign exchange and hence will not fit in
SEZ model.
AGENDA Item No. 9 (b) : Proposal of M/s. Empire Photovoltaic Systems Pvt. Limited, unit in M/s.
FAB City SPV (India) Pvt. Limited, SEZ for Semiconductors at Raviryala/Srinagar Villages,
MaheswaramMandal, Ranga Reddy District, Andhra Pradesh for approval for list of Services.
The Approval Committee noted the unit’s claim that they have only SEZ Operations.
23
The list of services is approved as under:
(I) In respect of services specified in rule 4 of the Place of Provision of Services Rules, 2012, the
place where the services are actually performed is within the SEZ
1 Cleaning activity Service
2 Commercial Training and coaching Service
3 Courier Service
4 Erection, Commissioning or installation services
5 Management, Maintenance or repair service ( in
respect of immovable properties)
6 Outdoor caterer’s Service (within the Zone)
7 Packaging Activity services
8 Security agency’s services
9 Technical inspection and certification service
10 Technical Testing and Analysis service
(II) In respect of services specified in rule 5 of the Provision of Services Rules, 2012, the place
where the property is located or intended to be located is within the SEZ
Sl.No Taxable Service
1 Architect’s Services
2 Interior Decorator’s services
3 Site formation and clearance, excavation
and earthmoving and demolition services
4 Works Contract Services
(III) Other Services
1 Advertising Agency’s Service
2 Air travel Agent’s Services
3 Airport Services
4 Banking and other financial service
5 Business auxiliary services
6 Business Exhibition Services
7 Business support services
8 Cargo Handling service
9 Chartered Accountant’ Service
10 Clearing and Forwarding agent’s services
11 Company Secretary’s Services
12 Computer network Services (Online information and
database access or retrieval Service)
13 Consulting Engineer’s service
24
14 Cost Accountant’s Services
15 Credit rating agency’s services
16 Customs House Agent’s Service
17 Design services
18 Forward contract Service
19 General Insurance Service
20 Information Technology Software Services
21 Internet telecommunication services
22 Man power recruitment & supply agency’s Service
23 Management or Business consultant’s services
24 Market Research agency’s service
25 Port Services
26 Public relation management Service
27 Rail Travel Agent’s Service
28 Real estate agent’s services
29 Storage and warehousing Service
30 Supply of tangible goods services
31 Telecommunication Services
32 Transport of Goods by Air Services
33 Transport of Goods by Road Service
34 Travel Agent’s service
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that where the specified services received in SEZ and used for the authorized
operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not
to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of
refund in terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
(c) The above categorization is indicative. The Specified Officer will take decision as per Notification
No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter
to Approval Committee.
APPROVAL COMMITTEE FOR M/s. NSL SEZ (HYDERABAD) PVT. LIMITED, SPECIAL
ECONOMIC ZONE FOR IT/ITES AT IDA UPPAL, RANGA REDDY DISTRICT, ANDHRA
PRADESH
AGENDA Item No. 10 (a) : Proposal of M/s. RamTech Technologies for setting up of a unit for
IT/ITES in M/s. NSL SEZ (Hyderabad) Pvt. Limited, IT/ITES SEZ at IDA Uppal, Ranga Reddy
District, Andhra Pradesh.
25
The Approval Committee discussed and approved the proposal.
AGENDA Item No. 10 (b) : Proposal of M/s. Planet Online P Ltd , unit in M/s. NSL SEZ (Hyderabad)
Pvt. Limited, IT/ITES SEZ at IDA Uppal, Ranga Reddy District, Andhra Pradesh for approval for
transfer of unit approval in the name of M/s. Planet Online P Ltd to M/s. Ebix Software India Pvt.
Limited.
The Approval Committee discussed and approved the proposal and advised that the information
may be sent to Range 16 of Income Tax Department and Income Tax office at Noida.
AGENDA Item No. 10 (c) : Proposal of M/s. ERP Analysts (India) Pvt. Ltd , unit in M/s. NSL SEZ
(Hyderabad) Pvt. Limited, IT/ITES SEZ at IDA Uppal, Ranga Reddy District, Andhra Pradesh for
approval for list of Services.
The Approval Committee noted the unit’s claim that they have both SEZ and DTA
Operations.
The list of services is approved as under:
(I) In respect of services specified in rule 4 of the Place of Provision of Services Rules, 2012, the
place where the services are actually performed is within the SEZ
Sl.No Taxable Service
1 Cleaning activity Service
2 Commercial Training or Coaching
Service
3 Courier Service
4 Erection, Commissioning or installation
Services
5 Management, Maintenance or repair
Service
6 Outdoor caterer’s Service (within the
Zone)
7 Packaging activity Service
8 Security agency’s Services
9 Technical inspection and certification
service
10 Technical Testing and Analysis Service
(II) In respect of services specified in rule 5 of the Provision of Services Rules, 2012, the place
where the property is located or intended to be located is within the SEZ
Sl.No Taxable Service
1 Architect services
2 Interior Decorator’s services
3 Renting of immovable property
4 Works Contract services
26
(III) Other Services
Sl.No Taxable Service
1 Air Travel Agent’s Services
2 Banking and other financial service
3 Business auxiliary services
4 Business exhibition Services
5 Business support Services
6 Cargo handling service
7 Clearing and forwarding agent’s services
8 Company Secretary’s Service
9 Computer network Service (Online information and
database access or retrieval Service)
10 Consulting Engineer’s Service
11 Cost Accountant’s Service
12 Custom House Agent’s Services
13 General Insurance Service
14 Information Technology Software Services
15 Internet telecommunication services
16 Legal Consultancy Services
17 Man power recruitment or supply agency’s Service
18 Management or business consultant Services
19 Port Services
20 Rail travel agent’s Service
21 Telecommunication Services
22 Transport of goods by air Services
23 Transported of goods by road Service
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that where the specified services received in SEZ and used for the authorized
operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not
to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of
refund in terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
27
(c) The above categorization is indicative. The Specified Officer will take decision as per Notification
No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter
to Approval Committee.
AGENDA Item No. 10 (d) : Proposal of M/s. ManagIT, unit in M/s. NSL SEZ (Hyderabad) Pvt. Ltd,
IT/ITES SEZ at IDA Uppal, Ranga Reddy District, Andhra Pradesh for approval for vacating incubation
space and moving to permanent space at Block-1, 3rd
Floor, NSL SEZ Arena.
The Approval Committee discussed and approved the proposal.
AGENDA Item No. 10 (e) : Proposal of M/s. Truven Health Analytics India Pvt. Ltd for setting up of a
unit for IT/ITES in M/s. NSL SEZ (Hyderabad) Pvt. Limited, IT/ITES SEZ at IDA Uppal, Ranga Reddy
District, Andhra Pradesh.
The Approval Committee discussed and approved the proposal.
APPROVAL COMMITTEE FOR M/s. LANCO HILLS TECHNOLOGY PVT. LIMITED,
SPECIAL ECONOMIC ZONE FOR IT/ITES AT MANIKONDA VILLAGE, RAJENDRA
NAGAR MANDAL, RANGA REDDY DISTRICT, ANDHRA PRADESH
AGENDA Item No. 11 (a): Notice issued to M/s. Bhrigus Software (I) Pvt. Limited, a unit in M/s.
Lanco Hills Technology Park Pvt. Limited, IT/ITES SEZ at Manikonda Village, Rajendra Nagar
Mandal, Ranga Reddy District, Andhra Pradesh for cancellation of their LOA.
M/s. Bhrigus Software (I) Pvt. Limited, Unit in M/s. Lanco Hills Technology Park Pvt. Limited,
IT/ITES SEZ at Manikonda Village, Rajendra Nagar Mandal, Ranga Reddy, Andhra Pradesh was issued
a Letter of Approval No. SEZ(IT/ITES)/BSI/LHTP(HYD)/0019/2009/17597 dated 21.12.2009 by this
office to set up a SEZ unit at M/s. Lanco Hills Technology Park Pvt. Limited, IT/ITES SEZ at
Manikonda Village, Rajendra Nagar Mandal, Ranga Reddy, Andhra Pradesh for IT/ITES subject to the
conditions imposed therein. The unit has executed Bond cum LUT on 22.02.2010 for Rs. 1,00,00,000/-.
The Authorized Officer/Specified Officer had asked the unit to submit reports vide his letters dated 20-
01-2012, 02-02-2012, 05-03-2012 and 13-04-2012 and they failed to submit the reports.The
performance of the unit was taken up for review by Approval Committee on 12.01.2012.The unit failed
to appear before the Approval Committee and it has been observed that the unit did not submit Annual
Performance Report and did not attend the meeting and consequently the Authorized Officer was asked
to furnish report on the unit.
Meanwhile it was reported by the Developer that the unit did not pay rent and is not working for
the past two months. The same was confirmed by the Authorized Officer that the unit is not functioning
properly and was found locked. The unit declared exports of Rs.302 Crores up to the end of March,
2012. Declaring exports when the unit is closed amounts to mis-declaration
Therefore a show cause notice was issued to the unit on 20-04-2012. The unit has not replied to
the notice and has been found locked. Hence the matter is referred to Approval Committee to cancel the
Letter of Approval.
The Approval Committee discussed and cancelled the Letter of Approval with a direction that
the unit shall refund duty availed on the goods imported or procured domestically. This action is without
prejudice to any other action taken against or contemplated against the unit or its Directors under any
law and regulation for the time being in force in India.
The cancellation may be brought to the notice of all members including STPI Office
28
AGENDA Item No. 11 (b): Proposal of M/s. Lanco Hills Technology Park Pvt. Limited, IT/ITES SEZ
at Manikonda Village, Rajendra Nagar Mandal, Ranga Reddy District, Andhra Pradesh for approval for
Additional list of Services.
The Approval Committee noted the Developer’s claim that they have both SEZ and DTA
Operations.
The Additional list of services is approved as under:
(II) In respect of services specified in rule 5 of the Provision of Services Rules, 2012, the place
where the property is located or intended to be located is within the SEZ
1 General Insurance (based on invoice)
(III) Other Services
Sl.No Taxable Service
1 Banking and other financial service (based on
invoice)
2 Real Estate Agent Service
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that where the specified services received in SEZ and used for the authorized
operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not
to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of
refund in terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
(c) The above categorization is indicative. The Specified Officer will take decision as per Notification
No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter
to Approval Committee.
APPROVAL COMMITTEE FOR M/s. INDU TECHZONE PVT. LIMITED, SPECIAL
ECONOMIC ZONE FOR IT/ITES AT MAMIDIPALLI VILLAGE, SAROORNAGAR
MANDAL, RANGA REDDY DISTRICT, ANDHRA PRADESH
AGENDA Item No. 12 : Notice issued to M/s. Exponential Technologies (S&H) Pvt. Limited, a unit in
M/s. InduTechzone Pvt. Limited, IT/ITES SEZ at Mamidipalli Village, SaroornagarMandal, Ranga
Reddy District, Andhra Pradesh for cancellation of their LOA.
M/s. Exponential Technologies (S&H) Pvt. Limited, Unit in M/s. InduTechzone Pvt. Limited, IT/ITES
SEZ at Mamidipalli Village, SaroornagarMandal, Ranga Reddy, Andhra Pradesh was issued a Letter of
Approval (LOA) No. 9/131/SEZ/HYD/2012 dated 25.05.2011 by this office to set up a SEZ unit at M/s.
29
InduTechzone Pvt. Limited, IT/ITES SEZ at Mamidipalli Village, SaroornagarMandal, Ranga Reddy,
Andhra Pradesh.
The unit has executed the Bond cum Legal Undertaking on 26.05.2011 for Rs. 652.90 Lakhs. As
per the condition of LOA No. 9/131/SEZ/HYD/2012 dated 25.05.2011, the unit was to start production
by 24.05.2012. They have neither started operations nor sought extension of their LOA dated
25.05.2011. The unit has not made any progress till date.
The unit was sent a show cause notice on 10-07-2012 but the letter returned as un-delivered.
The units Letter of Approval may therefore be cancelled.
The Approval Committee discussed and Cancelled the Letter of Approval (i.e no further
extension would be given) with a direction that the unit shall refund duty availed on the goods imported
or procured domestically. This action is without prejudice to any other action taken against or
contemplated against the unit or its Directors under any law and regulation for the time being in force in
India.
The cancellationmay be brought to the notice of all members including STPI Office.
APPROVAL COMMITTEE FOR M/s. APIIC LIMITED, SPECIAL ECONOMIC ZONE FOR
PHARMACEUTICAL FORMULATIONS AT POLEPALLY VILLAGE, JEDCHERLA
MANDAL, MAHABOOB NAGAR DISTRICT, ANDHRA PRADESH
AGENDA Item No. 13 :Proposal of M/s. Glochem Industries Ltd, unit in M/s. APIIC Limited, SEZ for
Pharmaceutical Formulations at Polepally Village, JedcherlaMandal, Mahaboob Nagar District, Andhra
Pradesh for approval for list of Services.
The Approval Committee noted the unit’s claim that they have both SEZ and DTA
Operations.
The list of services is approved as under:
(I) In respect of services specified in rule 4 of the Place of Provision of Services Rules, 2012, the
place where the services are actually performed is within the SEZ
Sl.No Taxable Service
1 Cleaning activity Service
2 Commercial Training or Coaching
Service
3 Courier Service
4 Erection, Commissioning or installation
Services
5 Management, Maintenance or repair
Service
6 Outdoor caterer’s Service (within the
Zone)
7 Packaging activity Service
8 Security agency’s Services
9 Technical inspection and certification
30
service
10 Technical Testing and Analysis Service
(II) In respect of services specified in rule 5 of the Provision of Services Rules, 2012, the place
where the property is located or intended to be located is within the SEZ
Sl.No Taxable Service
1 Architect services
2 Interior Decorator’s services
3 Site formation, clearing excavation and
earthmoving and demolition services
4 Works Contract services
(III) Other Services
Sl.No Taxable Service
1 Advertising Agency’s Service
2 Air Travel Agent’s Services
3 Airport Services
4 Banking and other financial service
5 Business auxiliary services
6 Business exhibition Services
7 Business support Services
8 Cargo handling service
9 Chartered Accountant’s Services
10 Clearing and forwarding agent’s services
11 Company Secretary’s Service
12 Computer network Service (Online information and
database access or retrieval Service)
13 Consulting Engineer’s Service
14 Cost Accountant’s Service
15 Credit rating agency’s services
16 Custom House Agent’s Services
17 Design services
18 Foreign Exchange Broker Service
19 Forward Contract Service
20 General Insurance Service
21 Information Technology Software Services
22 Insurance auxiliary services concerning general
insurance business
25 Internet telecommunication services
27 Man power recruitment or supply agency’s Service
31
28 Management or business consultant Services
29 Market research agency’s Services
30 Port Services
31 Processing and clearing house services
32 Public relation Management Service
33 Rail travel agent’s Service
34 Real estate agent’s services
37 Storage & Ware Housing Service
38 Supply of Tangible goods services
39 Telecommunication Services
40 Transport of goods by air Services
41 Transport of goods in by rail Service
42 Transported of goods by road Service
43 Travel Agent’s Service
(a) the exemption shall be provided by way of refund of service tax paid on the specified services
received by a unit located in a SEZ or the developer of SEZ and used for the authorized operations.
Provided that where the specified services received in SEZ and used for the authorized
operations are wholly consumed within the SEZ, the person liable to pay service tax has the option not
to pay the service taxes ab initio instead of the SEZ unit or the developer claiming exemption by way of
refund in terms of this notification.
(b) where the specified services received by the unit of a SEZ or developer are not wholly consumed
within SEZ, maximum refund shall be restricted to the extent of the ratio of export turnover of goods
and services multiplied by the service tax paid on services other than wholly consumed services to the
total turnover for the given period to which the claim relates.
(c) The above categorization is indicative. The Specified Officer will take decision as per Notification
No. 40/2012-Service Tax dated 20.06.2012. In case of doubt, the Specified Officer can refer the matter
to Approval Committee.
APPROVAL COMMITTEE FOR M/s. SATYAM COMPUTER SERVICES LIMITED,
SPECIAL ECONOMIC ZONE FOR IT/ITES AT MADHAPUR VILLAGE,
SERILINGAMPALLY MANDAL, RANGA REDDY DISTRICT, ANDHRA PRADESH
AGENDA Item No. 14 : Proposal of M/s. Satyam Computer Systems Limited, Developer, IT/ITES
SEZ at Madhapur Village, SerilingampallyMandal, Ranga Reddy District, Andhra Pradesh for approval
for procurement of 96 KL of Diesel for their SEZ.
The Approval Committee discussed and approved the procurement of 48 KL of Diesel for a
period of 3 months. Further approval would be based on consumption of the approved quantity.
APPROVAL COMMITTEE FOR M/s. TATA CONSULTANCY SERVICES LIMITED,
SPECIAL ECONOMIC ZONE FOR IT/ITES AT ADIBATLA VILLAGE, IBRAHIMPATNAM
MANDAL, RANGA REDDY DISTRICT, ANDHRA PRADESH
32
AGENDA Item No. 15 : Proposal of M/s. Tata Consultancy Services Limited, Developer, IT/ITES SEZ
at AdibatlaVillage, IbrahimpatnamMandal, Ranga Reddy District, Andhra Pradesh for approval for
Additional list of materials worth Rs.35.90 Crorefor their SEZ.
The Approval Committee discussed and approved50% of the value of the list of Capital Goods
for their SEZ.
AGENDA: 16 (a)
Review of performance of M/s. IL & FS Environmental Infrastructure & Services Limited, unit
in M/s. FAB City SPV (India) Pvt. Limited, SEZ for Semiconductors at Raviryala/Srinagar Villages,
MaheswaramMandal, Ranga Reddy District, Andhra Pradesh for the financial year 2011-12.
The Approval Committee reviewed the performance of M/s. IL & FS Environmental
Infrastructure & Services Limited, unit in M/s. FAB City SPV (India) Pvt. Limited, SEZ for
Semiconductors at Raviryala/Srinagar Villages, MaheswaramMandal, Ranga Reddy District, Andhra
Pradesh for the financial year 2011-12.
The brief particulars of the unit are as below:
Name of the Unit M/s. IL & FS Environmental Infrastructure &
Services Limited
LOA No. & Date F. No. 9/079/SEZ/HYD/2010 dated 20.01.2011
Item of Activity Environmental related Services including
establishment of Common Effluent Treatment Plant
Date of Commencement of Production Yet to start
Exports for the year 2011-12 NA
Imports for the year 2011-12 NA
Cumulative NFE NA
Cumulative Duty foregone 13.46 lakh
DTA Sales NIL
Second hand machinery procurement & % of
machinery
Unit to provide
Investment on Plant & Machinery 157.23 Lakhs
Investment on others 274.63 Lakhs
Employment Male – 120 Nos
Female – NIL
Projected Exports as per Form F 4.55 US $
Investment as per Form F 1342 Lakhs
Employment as per Form F Male – 120 Nos
Female – NIL
Remarks The unit advised to speed up implementation
works.
AGENDA: 16 (b)
Review of performance of M/s. Automotive Design & Engineering Solutions Pvt. Ltd, unit in
M/s. Phoenix Infocity Pvt. Limited, IT/ITES SEZ at Gachibowli Village, SerilingampallyMandal, Ranga
Reddy District, Andhra Pradesh for the financial year 2011-12.
33
The Approval Committee reviewed the performance of M/s. Automotive Design & Engineering
Solutions Pvt. Ltd, unit in M/s. Phoenix Infocity Pvt. Limited, IT/ITES SEZ at Gachibowli Village,
SerilingampallyMandal, Ranga Reddy District, Andhra Pradesh for the financial year 2011-12.
The brief particulars of the unit are as below:
Name of the Unit M/s. Automotive Design & Engineering Solutions
Pvt. Ltd
LOA No. & Date F. No.
SEZ(IT/ITES)/ADES/L&T/(HYD)/0030/2010-11
dated 13.05.2010
Item of Activity IT/ITES
Date of Commencement of Production 09.11.2010
Exports for the year 2011-12 486.61 Lakhs
Imports for the year 2011-12 NIL
Cumulative NFE 633.01 Lakhs
Cumulative Duty foregone 0.40 lakh rupees
DTA Sales NIL
Second hand machinery procurement & % of
machinery
4.7%
Investment on Plant & Machinery 47.09 Lakhs
Investment on others NIL
Employment Male – 21 Nos
Female – NIL
Projected Exports as per Form F 1275 Lakhs
Investment as per Form F 45 Lakhs
Employment as per Form F Male – 22 Nos
Female – 6 Nos
Remarks
AGENDA: 16 (c)
Review of performance of M/s. NTT Data India Enterprise Application Services Pvt. Ltd, unit in
M/s. DLF Commercial Developers Limited, IT/ITES SEZ at Gachibowli Village,
SerilingampallyMandal, Ranga Reddy District, Andhra Pradesh for the financial year 2011-12.
The Approval Committee reviewed the performance of M/s. NTT Data India Enterprise
Application Services Pvt. Ltd, unit in M/s. DLF Commercial Developers Limited, IT/ITES SEZ at
Gachibowli Village, SerilingampallyMandal, Ranga Reddy District, Andhra Pradesh for the financial
year 2011-12.
The brief particulars of the unit are as below:
Name of the Unit M/s. NTT Data India Enterprise Application
Services Pvt. Ltd
LOA No. & Date F. No. SEZ(IT/ITES)/IGA/DLFA/(HYD)/64/2010-
11 dated 06.12.2010
Item of Activity IT/ITES
Date of Commencement of Production 01.04.2011
Exports for the year 2011-12 1975.63 Lakhs
Imports for the year 2011-12 13.03 Lakhs
Cumulative NFE 1962.59 Lakhs
34
Cumulative Duty foregone Authorized Officer to report
DTA Sales NIL
Second hand machinery procurement & % of
machinery
NIL
Investment on Plant & Machinery 220.42 Lakhs
Investment on others NIL
Employment Male – 294 Nos
Female – 56 Nos
Projected Exports as per Form F 10074.65 Lakhs
Investment as per Form F 348.88 Lakhs
Employment as per Form F Male – 135 Nos
Female – 90 Nos
Remarks
AGENDA: 16 (d)
Review of performance of M/s. D’damasJewellery (India) Pvt. Ltd, unit in M/s. Hyderabad
Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village, MaheswaramMandal, Ranga
Reddy District, Andhra Pradesh for the financial year 2011-12.
The Approval Committee reviewed the performance of M/s. D’damasJewellery (India) Pvt. Ltd,
unit in M/s. Hyderabad Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village,
MaheswaramMandal, Ranga Reddy District, Andhra Pradesh for the financial year 2011-12.
The brief particulars of the unit are as below:
Name of the Unit M/s. D’damasJewellery (India) Pvt. Ltd
LOA No. & Date F. No. 9/053/SEZ/HYD/2009 dated 16.02.2009
Item of Activity Plain & studded gold/silver/platinum jewellery with
diamonds, precious &semi precious stones
Date of Commencement of Production 09.02.2012
Exports for the year 2011-12 1072.59 Lakhs
Imports for the year 2011-12 1.74 Lakhs
Cumulative NFE 1070.85 Lakhs
Cumulative Duty foregone 0.03 crore rupees
DTA Sales NIL
Second hand machinery procurement & % of
machinery
Unit to provide
Investment on Plant & Machinery 19.09 Lakhs
Investment on others NIL
Employment Male – 12 Nos
Female – 10 Nos
Projected Exports as per Form F 20000 Lakhs
Investment as per Form F 325.25 Lakhs
Employment as per Form F Male & Female – 353 Nos (including 5%
physically handicapped)
Remarks 1) Male and Female bifurcation not provided by
unit and employment is below the projections.
AGENDA: 16 (e)
35
Review of performance of M/s. Gitanjali Gems Ltd, Trading unit in M/s. Hyderabad Gems SEZ
Limited, SEZ for Gems &Jewellery at Raviryala Village, MaheswaramMandal, Ranga Reddy District,
Andhra Pradesh for the financial year 2011-12.
The Approval Committee reviewed the performance of M/s. Gitanjali Gems Ltd, Trading unit in
M/s. Hyderabad Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village,
MaheswaramMandal, Ranga Reddy District, Andhra Pradesh for the financial year 2011-12.
The brief particulars of the unit are as below:
Name of the Unit M/s. Gitanjali Gems Ltd, Trading unit
LOA No. & Date F. No. 9/023/SEZ/HYD/2008 dated 27.05.2008
Item of Activity Cut & polished diamonds and rough diamonds etc
Date o Commencement of Production 17.03.2009
Exports for the year 2011-12 90987.04 Lakhs
Imports for the year 2011-12 80711.35 Lakhs
Cumulative NFE 20154.91 Lakhs
Cumulative Duty foregone 5.32 crore rupees
DTA Sales NIL
Second hand machinery procurement & % of
machinery
Unit to provide
Investment on Plant & Machinery 2.87 Lakhs
Investment on others NIL
Employment Male – 20 Nos
Female – 5 Nos
Projected Exports as per Form F 34000 Lakhs
Investment as per Form F 270 Lakhs
Employment as per Form F Male – 15 Nos
Female – 2 Nos
Remarks
AGENDA: 16 (f)
Review of performance of M/s. Gitanjali Gems Ltd, Manufacturing unit in M/s. Hyderabad
Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village, MaheswaramMandal, Ranga
Reddy District, Andhra Pradesh for the financial year 2011-12.
The Approval Committee reviewed the performance of M/s. Gitanjali Gems Ltd, Manufacturing
unit in M/s. Hyderabad Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village,
MaheswaramMandal, Ranga Reddy District, Andhra Pradesh for the financial year 2011-12.
The brief particulars of the unit are as below:
Name of the Unit M/s. Gitanjali Gems Ltd, Manufacturing unit
LOA No. & Date F. No. 23(4)/VSEZ/2006-07 dated 06.12.2006
Item of Activity Cut & polished diamonds, diamond studded
gold/platinum jewellery, gold/silver/platinum
jewellery manufacturing & combination jewellery,
plain & studded with diamonds, precious/semi
precious stones, CZ & machine made
(bangles/rings/watch components) & chain
36
manufacturing
Date of Commencement of Production 12.12.2007
Exports for the year 2011-12 73666.22 Lakhs
Imports for the year 2011-12 36367.77 Lakhs
Cumulative NFE 62141.01 Lakhs
Cumulative Duty foregone 1.75crore rupees
DTA Sales 2.62 Lakhs
Second hand machinery procurement & % of
machinery
Unit to provide
Investment on Plant & Machinery 317.31 Lakhs
Investment on others NIL
Employment Male – 733 Nos
Female – 687 Nos
Projected Exports as per Form F 34000 Lakhs
Investment as per Form F 270 Lakhs
Employment as per Form F Male – 15 Nos
Female – 2 Nos
Remarks
AGENDA: 16 (g)
Review of performance of M/s. Gitanjali Exports Corporation Ltd, Trading unit in M/s.
Hyderabad Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village, MaheswaramMandal,
Ranga Reddy District, Andhra Pradesh for the financial year 2011-12.
The Approval Committee reviewed the performance of M/s. Gitanjali Exports Corporation Ltd,
Trading unit in M/s. Hyderabad Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village,
MaheswaramMandal, Ranga Reddy District, Andhra Pradesh for the financial year 2011-12.
The brief particulars of the unit are as below:
Name of the Unit M/s. Gitanjali Exports Corporation Ltd, Trading
unit
LOA No. & Date F. No. 9/072/SEZ/HYD/2009 dated 22.12.2009
Item of Activity Cut & polished diamonds and cut & polished
diamonds &semi precious stones
Date of Commencement of Production 10.06.2010
Exports for the year 2011-12 32653.25 Lakhs
Imports for the year 2011-12 28975.49 Lakhs
Cumulative NFE 5168.42 Lakhs
Cumulative Duty foregone 1.3 crore rupees
DTA Sales NIL
Second hand machinery procurement & % of
machinery
Unit to provide
Investment on Plant & Machinery 1.76 Lakhs
Investment on others NIL
Employment Male – 7 Nos
Female – 3 Nos
Projected Exports as per Form F 28000 Lakhs
37
Investment as per Form F 175 Lakhs
Employment as per Form F Male & Female – 15 Nos
Remarks Male and Female bifurcation not given in Form F
AGENDA: 16 (h)
Review of performance of M/s. AsmiJewellery India Ltd, unit in M/s. Hyderabad Gems SEZ
Limited, SEZ for Gems &Jewellery at Raviryala Village, MaheswaramMandal, Ranga Reddy District,
Andhra Pradesh for the financial year 2011-12.
The Approval Committee reviewed the performance of M/s. AsmiJewellery India Ltd, unit in
M/s. Hyderabad Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village,
MaheswaramMandal, Ranga Reddy District, Andhra Pradesh for the financial year 2011-12.
The brief particulars of the unit are as below:
Name of the Unit M/s. AsmiJewellery India Ltd
LOA No. & Date F. No. 9/055/SEZ/HYD/2009 dated 16.02.2009
Item of Activity Plain & studded gold jewellery, silver jewellery
manufacturing studded with diamonds, precious
&semi precious stones gold/steel studded jewellery,
plain jewellery (Gold/silver/tungsten)
Date of Commencement of Production 24.03.2010
Exports for the year 2011-12 5445.43 Lakhs
Imports for the year 2011-12 812.05 Lakhs
Cumulative NFE 6279.46 Lakhs
Cumulative Duty foregone 0.03 crore rupees
DTA Sales NIL
Second hand machinery procurement & % of
machinery
Unit to provide
Investment on Plant & Machinery 24.79 Lakhs
Investment on others NIL
Employment Male – 52 Nos
Female – 43 Nos
Projected Exports as per Form F 17500 Lakhs
Investment as per Form F 345.16 Lakhs
Employment as per Form F Male & Female – 355 Nos
Remarks Male and Female bifurcation not given in Form F
and Employment is below the projections.
AGENDA: 16 (i)
Review of performance of M/s. Gitanjali Exports Corporation Ltd, Manufacturing unit in M/s.
Hyderabad Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village, MaheswaramMandal,
Ranga Reddy District, Andhra Pradesh for the financial year 2011-12.
The Approval Committee reviewed the performance of M/s. Gitanjali Exports Corporation Ltd,
Manufacturing unit in M/s. Hyderabad Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala
Village, MaheswaramMandal, Ranga Reddy District, Andhra Pradesh for the financial year 2011-12.
38
The brief particulars of the unit are as below:
Name of the Unit M/s. Gitanjali Exports Corporation Ltd,
Manufacturing unit
LOA No. & Date F. No. 9/051/SEZ/HYD/2009 dated 29.01.2009
Item of Activity Plain & studded gold jewellery, silver jewellery
manufacturing studded with diamonds, precious
&semi precious stones gold/steel studded jewellery,
plain jewellery (Gold/silver/tungsten)
Date of Commencement of Production 01.01.2010
Exports for the year 2011-12 2295.45 Lakhs
Imports for the year 2011-12 1583.98 Lakhs
Cumulative NFE 4582.73 Lakhs
Cumulative Duty foregone 0.14 crore rupees
DTA Sales NIL
Second hand machinery procurement & % of
machinery
Unit to provide
Investment on Plant & Machinery 237.70 Lakhs
Investment on others NIL
Employment Male – 342 Nos
Female – 316 Nos
Projected Exports as per Form F 22500 Lakhs
Investment as per Form F 215 Lakhs
Employment as per Form F Male & Female – 5000 Nos
Remarks Male and Female bifurcation not given in Form F
and employment is below the projections. Unit to
make efforts to increase employment,
AGENDA: 16 (j)
Review of performance of M/s. Gitanjali Brands Ltd, unit in M/s. Hyderabad Gems SEZ
Limited, SEZ for Gems &Jewellery at Raviryala Village, MaheswaramMandal, Ranga Reddy District,
Andhra Pradesh for the financial year 2011-12.
The Approval Committee reviewed the performance of M/s. Gitanjali Brands Ltd, unit in M/s.
Hyderabad Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village, MaheswaramMandal,
Ranga Reddy District, Andhra Pradesh for the financial year 2011-12.
The brief particulars of the unit are as below:
Name of the Unit M/s. Gitanjali Brands Ltd
LOA No. & Date F. No. 9/054/SEZ/HYD/2009 dated 16.02.2009
Item of Activity Gold/silver/platinum jewellery, Plain & studded
with diamonds and precious/semi precious stones
Date of Commencement of Production 24.03.2010
Exports for the year 2011-12 3703.54 Lakhs
Imports for the year 2011-12 NIL
Cumulative NFE 3992.28 Lakhs
Cumulative Duty foregone nil
DTA Sales NIL
Second hand machinery procurement & % of Unit to provide
39
machinery
Investment on Plant & Machinery 9.70 Lakhs
Investment on others NIL
Employment Male – 41 Nos
Female – 26 Nos
Projected Exports as per Form F 14500 Lakhs
Investment as per Form F 335.36 Lakhs
Employment as per Form F Male & Female – 353 Nos
Remarks Male and Female bifurcation not given in Form F
and employment below the projections.
AGENDA: 16 (k)
Review of performance of M/s. Brightest Circle Jewellery Ltd, unit in M/s. Hyderabad Gems
SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village, MaheswaramMandal, Ranga Reddy
District, Andhra Pradesh for the financial year 2011-12.
The Approval Committee reviewed the performance of M/s. Brightest Circle Jewellery Ltd, unit
in M/s. Hyderabad Gems SEZ Limited, SEZ for Gems &Jewellery at Raviryala Village,
MaheswaramMandal, Ranga Reddy District, Andhra Pradesh for the financial year 2011-12.
The brief particulars of the unit are as below:
Name of the Unit M/s. Brightest Circle Jewellery Ltd
LOA No. & Date F. No. 9/052/SEZ/HYD/2009 dated 16.02.2009
Item of Activity Gold/silver/platinum jewellery, Plain & studded
with diamonds and precious/semi precious stones
Date of Commencement of Production 15.09.2011
Exports for the year 2011-12 3652.98 Lakhs
Imports for the year 2011-12 2.33 Lakhs
Cumulative NFE 3650.65 Lakhs
Cumulative Duty foregone nil
DTA Sales NIL
Second hand machinery procurement & % of
machinery
Unit to provide
Investment on Plant & Machinery 8.59 Lakhs
Investment on others NIL
Employment Male – 11 Nos
Female – 12 Nos
Projected Exports as per Form F 20000 Lakhs
Investment as per Form F 325.25 Lakhs
Employment as per Form F Male & Female – 353 Nos
Remarks Male and Female bifurcation not given in Form F
and unit to make efforts to increase employment.
AGENDA: 16 (l)
The Approval Committee reviewed the performance of M/s. Virtusa India Pvt. Ltd, unit in M/s.
APIIC Limited, IT/ITES SEZ at Nanakramguda Village, SerilingampallyMandal, Ranga Reddy District,
Andhra Pradesh for the financial year 2011-12.
40
The brief particulars of the unit are as below:
Name of the Unit M/s. Virtusa India Pvt. Ltd
LOA No. & Date F. No. SEZ(IT/ITES)/VIPL/APIC-
VIPL/(HYD)/0024/2009-10 dated 24.03.2010
Item of Activity IT/ITES
Date of Commencement of Production 25.10.2010
Exports for the year 2011-12 4020.45 Lakhs
Imports for the year 2011-12 980.13 Lakhs
Cumulative NFE 3740.74 Lakhs
Cumulative Duty foregone 188.32 Lakh Rupees as of date
DTA Sales NIL
Second hand machinery procurement & % of
machinery
58%
Investment on Plant & Machinery 1117.15 Lakhs
Investment on others NIL
Employment Male – 459 Nos
Female – 115 Nos
Projected Exports as per Form F 13286.44 Lakhs
Investment as per Form F 229.78 Lakhs
Employment as per Form F Male – 225 Nos
Female – 75 Nos
Remarks Unit to be bound by secondhand machinery norms
w.r.t IT benefits
AGENDA: 16 (m)
Review of performance of M/s. Virtusa Consulting Services Pvt. Ltd, unit in M/s. APIIC
Limited, IT/ITES SEZ at Nanakramguda Village, SerilingampallyMandal, Ranga Reddy District,
Andhra Pradesh for the financial year 2011-12.
The Approval Committee reviewed the performance of M/s. Virtusa Consulting Services Pvt.
Ltd, unit in M/s. APIIC Limited, IT/ITES SEZ at Nanakramguda Village, SerilingampallyMandal,
Ranga Reddy District, Andhra Pradesh for the financial year 2011-12.
The brief particulars of the unit are as below:
Name of the Unit M/s. Virtusa Consulting Services Pvt. Ltd
LOA No. & Date F. No. 9019/SEZ/HYD/2008 dated 15.04.2008
Item of Activity IT/ITES
Date of Commencement of Production
Exports for the year 2011-12 12737.92 Lakhs
Imports for the year 2011-12 522.38 Lakhs
Cumulative NFE 23598.32 Lakhs
Cumulative Duty foregone 189.24 lakh Rupees as of date
DTA Sales NILL
Second hand machinery procurement & % of
machinery
13%
Investment on Plant & Machinery 1023.62 Lakhs
Investment on others NIL
41
Employment Male – 1201 Nos
Female – 430 Nos
Projected Exports as per Form F 53590 Lakhs
Investment as per Form F 922 Lakhs
Employment as per Form F Male – 1537 Nos
Female – 384 Nos
Remarks
AGENDA: 16 (n)
Review of performance of M/s. Planet Online Pvt. Ltd, unit in M/s. NSL SEZ (Hyderabad) Pvt.
Limited, IT/ITES SEZ at IDA Uppal, Ranga Reddy District, Andhra Pradesh for the financial year 2011-
12.
The Approval Committee reviewed the performance of M/s. Planet Online Pvt. Ltd, unit in M/s.
NSL SEZ (Hyderabad) Pvt. Limited, IT/ITES SEZ at IDA Uppal, Ranga Reddy District, Andhra
Pradesh for the financial year 2011-12. Name of the Unit M/s. PlanetOnline Pvt. Ltd
LOA No. & Date F. No. 9/121/SEZ/HYD/2011 dated 16.03.2011
Item of Activity IT/ITES
Date of Commencement of Production 3-05-2012
Exports for the year 2011-12 920.50 Lakhs
Imports for the year 2011-12 NIL
Cumulative NFE 920.50 Lakhs
Cumulative Duty foregone nil
DTA Sales NIL
Second hand machinery procurement & % of
machinery
2.5%
Investment on Plant & Machinery 18.08 Lakhs
Investment on others NIL
Employment Male – 68 Nos
Female – 15 Nos
Projected Exports as per Form F 9672.43 Lakhs
Investment as per Form F 184.88 Lakhs
Employment as per Form F Male – 179 Nos
Female – 45Nos
Remarks The business and assets of the unit have been taken over
by Ebix Software India Pvt Ltd.
AGENDA: 16 (0)
Review of performance of M/s. Amedha Info Systems Pvt. Ltd, unit in M/s. NavayugaLegala
Estates Pvt. Limited, IT/ITES SEZ at Serilingampally Village &Mandal, Ranga Reddy District, Andhra
Pradesh for the financial year 2011-12.
The Approval Committee reviewed the performance of M/s. Amedha Info Systems Pvt. Ltd, unit
in M/s. NavayugaLegala Estates Pvt. Limited, IT/ITES SEZ at Serilingampally Village &Mandal, Ranga
Reddy District, Andhra Pradesh.
The Unit had represented that their Softex Forms are pending with the Office of the
Development Commissioner and they are urgently required because of pressure from their Banker.
42
The Softex Forms were pending because the unit was under investigation for improper exports. The
matter was also referred to Reserve Bank of India and other agencies.
The following were asked for submission/clarification in addition to the main issue that the unit has
shown high exports which are not corresponding to its employment.
1) In respect of creditors ledger of StratedgeInc, the payment shown in ledger is Rs. 2,73,07,332/-
where as the Bank statement shows a debit of Rs. 13,98,101 dollars.
2) In respect of Amalgam Technologies, ledger shows a payment of Rs. 8,27,63,413. However
there is no debit in the bank statement. Please explain
3) In respect of imports made, please give the details of the LC’s or any other similar instruments
opened with the authorized dealer for the payments.
4) In respects of contract with AD3I, in Section 4 it is specifically mentioned that an irrevocable
international letter of credit should be opened. Please give details of this LOC
5) Copies of email correspondence made by your suppliers with you with reference to supply of
software especially with reference to receipt of the software.
6) In respect of exports, have you taken any policy with ECGC, if so provide details
7) Please provide details of the LCs or irrevocable international letter of credit or similar documents
opened by your buyers
8) Please provide the Federal Identification Number (FEIN) of your buyers if possible.
9) Copies of email correspondence made by your buyers in token of receipt of software by your
buyers along with proof and mode of export of the software invoice wise.
10) Copies of email correspondence made by your suppliers with you.
11) You have stated that you have received money for technical support/maintenance. which is the
unit to which you are providing this support. Please also state when the software was supplied to
them along with documents/payment in support of them. Why was three years advance payment
made against the industry practice? Produce agreement copies with them.
12) What is the status of Amedha’s branch in USA. Are you reflecting the activities in our balance
sheet? Or vice versa
13) In respect of M/s. Amalgam Technologies from whom you have imported software, you have not
made any payments. However, it is seen from records that you have received an amount of
1,01,213 Dollars from them. Please explain.
14) Similarly, you have received 2,14,587 US Dollars from 4 other companies to whom you have not
supplied anything. Please explain.
15) Are you having similar type of exports from your STPI unit to the same buyers. Are you
maintaining separate books of accounts for both the units.
16) Subsequent to submission of the information, have you received any amounts in respect of your
exports and made any payments in respect of your imports
17) Are there any proceedings pending/decided against your unit or Directors in respect of violation
of any rules by any Government agency?
18) Please submit a list of Plant and machinery with value installed in your premises along with
supporting documents.
19) Out of the installed capital goods, what is the value of second hand goods.
20) Have you availed any duty exemptions if yes the details and if not the reasons thereof.
21) Are there any interest/penalty provisions for late payment and whether you invoked the same
against late export payments and whether your suppliers invoked the same against you?
22) In the LOA you have shown projection of exports for 2012 as 8.03 crores. However, within a
few days of starting production(19th
march 2011), you have shown export sales of 7.9 croresi.e in
march 2011 itself. Similarly, for the year 2011-12 upto Jan 2012 you have shown export sales of
81.0 crores with just 20 employees, please explain.
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23) You have stated that your work hours coincide with with that of US because of which
employees are not available during day time.You also said that you undertake soft ware
development and customization of software.In case of development and customization of
software where is the need to work in US timings Please explain.
24) From the statement of Bank of America, it appears that your USA branch is recovering certain
amount from the customers to whom the software was said to be exported. Please explain.
The Branch Office recovered some amounts from M/s. Adroit Professional Services thru Bank of
America. As per the financial statement of M/s. Amedha Info Systems LLC., USA, the revenues
shown as $ 23,41,822 and the expenses shown are $ 22,84,052. Out of the total expenses shown,
salaries and compensation stood at $19,27,376 (Approx. Rs. 8,86,59,298/- @ Rs.46/- per US$, as
son 31.01.2012). In the Balance Sheet for the period ending 31.01.2012, the expenditure shown
towards employee cost is Rs.1,69,35,314/-. Please explain the discrepancy and why the same
was not brought on record and not informed to AO or SO. Further why was expenditure of US
branch booked to SEZ unit.
25) Are there any onsite works and if yes whether any employees from SEZ were deputed and if yes
please furnish particulars with proofs.
26) Out of 13 customers, 3 customers viz., (i) Webilant Technologies Inc., (ii) DW Labs Inc (iii)
Adaptive Inc have not made any payments. Please explain.
27) Also, explain why the other amounts from your buyers are not received inspite of the condition
in the agreements and invoices that payments have to be made within six months. Even after six
months, you have not received the payments. Please explain.
28) It appears that you have provided applications support and maintenance to M/s. Basewood
Ventures and M/s. Adaptive Inc. However, there is no evidence of any design, development and
supply of software to them. Please explain with documentary evidence.
29) It is observed from the websites of the software product suppliers and software product buyers of
the unit, certain companies of have same addresses located in New Jersey, USA. Some of the
addresses of clients/suppliers mentioned in the agreement copy and the address shown in the
website of the relevant companies are different. Please clarify.
30) In the case of M/s. imatrixcorp, the address shown in the agreement copy is M/s. imatrix Corp,
1520, State Hwy, 130N, Suite#201, North Brunswick, NJ 08902 whereas from the website of
M/s. imatrixcorp, the address is mentioned as 850, Georges Rd, US Highway 1, 3rd
Floor, North
Brunswick, NJ 08902. As per the certificate of foreign inward remittance issued by M/s.
Standard Chartered Bank the address given is 825, Georges Rd, STE 4. The foreign inward
remittance certificate shows the address of M/s. Horizon Computer Services inc& M/s. Promtrix
Corp address also as 825, Georges Rd, STE 4. Even the branch of the unit has the same address.
Please clarify.
31) In the case of M/s. Epeople technologies Inc the address given as per the agreement is 1259,
Router Building #2, Parsippany, NJ-07054. The agreement copy of the Basewood Ventures
and Capital Services LLC is not provided. As per the websites of both the companies the address
is same, i.e., 1259 Router 46, Building #2 Parsippany, NJ-07054. As per the foreign inward
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remittance certificate the address of Basewood Venture was shown as “0 HEARTER CT
MONMOUTH JCT. NJ.0” The address of the M/s. Broadrange Technologies Inc is also
similar.Please clarify.
32) As per the agreement and invoice the address of M/s. Siri Info Solutions is Inc, 55 Carter Drive,
Suite#215, Edison, NJ-08817. But as per the foreign inward remittance certificate the address is
“55 CARTER DR STE 105”.Please clarify.
33) As per the agreement copy, no address is given for M/s. Ad3i (Seller, from whom the SEZ unit
said to have purchased software product). However, as per the invoice and website of the M/s.
AD3i, the address given as 180 Raritan Centre Parkway Edison NJ 08837. In this case the suite
No. was not mentioned. In the case of M/s. Trisync Technologies Inc., (Buyer – to whom
software said to be exported) as per the copy of the agreement, the address is given as 180,
Raritan Centre Parkway, Suite #04, Edison, NJ 08837 whereas as per the website of said
company the address given as 180 Raritan Center Parkway, Suite #206, Edison, NJ 08837.
(There is difference in address of M/s. Trisync Technologies Inc as per the copy of the
agreement ad as per the website address in particular the Suite Number).Please clarify.
34) The address of the unit in their Bank statement is shown as Plot No. 1182, Ayyappa Society, 4th
Floor, Near Society Office Madhapur, Hyderabad – 81. This is STPI unit’s address wherein you
appear to have similar activities as that of the SEZ unit.Please clarify.
35) The export proceeds credited to your account have been withdrawn by you for your business
needs or still lying with the bank.
36) Please submit a copy of your IT return for 2010-11 and 2011-12 and your annual reports for
those years.
The unit had reasoned that they export software after making modifications to imported software
and since the value of imported software is also included the value seems to be high. They had
not been able to inform about Import of software because of ignorance.
They further submitted that:
“We would like to quickly summarize on main items of notice of findings on our SEZ unit activities and
providing our explanation for each item. Before to that we would like to bring to your kind attention our
unit no intentions to conduct any fraudulent activities. In fact we have been very cooperative during
inquiry on our unit activities. We ourselves disclosed methods of conducting our business activities and
various other facts about our operations; though we have not been asked about them by SEZ authorities.
Our agenda is to conduct detailed examination and identify if there are any irregularities due to lack of
our knowledge about SEZ regulations. If there are any irregularities identified we would like to stop
such activities immediately and request SEZ authorities to give us an opportunity to rectify them. We
also would like to bring it to your kind attention that we cooperated beyond the extent with SEZ
authorities during inquiry.
Report mainly discussed about below items
Some of address of clients / suppliers mentioned in agreements and their websites are different;
few of the entities has same address
3 customers have not made any payments and some of them are not made full payment
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Unit has branch in USA.
Branch recovered some amounts and paid certain expenses primarily compensation; same was
booked as compensation expenditure in SEZ unit balance sheets ending 31.01.2012 and why
branch expenditure was booked to SEZ unit.
As per initial LOA exports were projected as 8.03 cores; but 7.9 cores were shown as exports in
financial year 2011 itself and 81 Cores in financial year 2012 with just 20 employees, explain
Are there any proceedings pending/decided against your unit / directors in respect of violation of
any rules by any Government agency?
Discrepancy in unaudited ledger of SEZ unit and its bank statements
Unit received USD 214,587 from 4 companies to whom unit have not supplied anything.
Information about STPI unit and how books of accounts is maintained for both unit
Miscellaneous items; how business is conducted such as ECGC policy, LC for Imports and
exports, correspondence with buyers and suppliers regarding efforts made to collect income /
payments, exports/imports advance payment for technical support and maintenance; value of
planet and machinery, capital goods, duty exemptions, penalties etc
Explanation
Some of address of clients / suppliers mentioned in agreements and their websites are different; few of
the entities has same address
We would like to bring to your kind attention banking in USA is mostly online banking. Most of the
banks do not even mail the bank statements via physical mail. Bank statements are available online for
download or delivered via email. Hence companies or individuals do not updated address with banks
promptly when address has been changed. Therefore Foreign Inwards remittance certificates (FIRC)
reflect old address of the entities which bank has in their records.
M/s Siri Info Solutions Inc:Initially they occupied 105 and relocated to Suite 215 for more space;
currently operating from Suite 215. We are assuming they did not change the address with their banker.
Therefore Suite No# in FIRC is different from their web site.
M/s. AD3I: Agreement has no address; but invoice has 180 Raritan center parkway, Edison NJ 08837.
But no suite no# mentioned in invoice
We would like to bring it to your kind attention that agreement format provided by AD3I does not
stipulate to mention their address. Payments and communication to AD3I will be made via electronic
fund transfer/online; Suite no# is not mandatory in Invoice because payment will not be made via
physical mail.
M/s Trisync Technologies Inc: Suite no# if different in agreement and web site.
Based on best of our knowledge property management of building in which Trisync is located
reorganized suite no#; initially they have been give suite no#4; later it was reorganized to Suite# 206.
Property Management Company reorganized based on floor number; Suite no# for all companies in 2nd
floor starts with 200 series.
M/s ePeople Technologies Inc and Basewood Ventures and Capital Services address is same which is
1259 Route 46, Building no# 2, Parsippany NJ 07054. As per FIR Certificate address of basewood is 0
Heater Ct, Monmouth Jct NJ.0 which is the address for M/s Broadrange Technologies
We would like to clarify that 1259 Route 46 is commercial space has 4 (multiple) buildings. Both ePople
Technologies and Basewood are tents in Building no# 2. ePeople is our initial client, one of their
principal helped us in procurement / sales.To facilitate their interest broadrange and basewood has been
incorporated (similar to special purpose Vehicles). Address mentioned in FIR 0 Heater Ct, Monmouth
Jct NJ.0 is their registered agent address.
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M/s IMATRIX Corp, Horizon Computer Services Inc and Promatrix Corp address as same as per FIR
and Branch has same address. M/s IMATRIX CORP address as per agreement and web site is different:
We would like to bring to your kind attention that we are relying on integrators/PR firms to source
projects and clients for us. For the help extended we offer share in revenues / profits. To protect their
interest above companies has been floated as Special Purpose Vehicles (SPV) and entered into
agreement with clients and further subcontracted to our SEZ unit. Actual work is performed from our
SEZ unit and certain work has been performed from ultimate client office. Therefore these SPV does
not required huge office and high end infrastructure. So they are (imatrix Corp and promatrx Corp)
initially operated from Horizon Computer Services office; later rented their own office. So agreement
reflected their own office address and their banker has initial office address which is 825, Georges Rd,
Suite#4. Primary Share Holder of Horizon Computer Services is share holder in our SEZ Unit. SEZ unit
Branch office is primarily an administrative office operating from Horizon’s office.
Unit address in Bank Statement and STPI unit has same address where we have similar activities
We are not aware that our address with Banker has to be changed after starting SEZ operations. When it
was brought our attention we updated our SEZ unit address with Banker.
Out of 13 customers, 3 customers have not made any payments. Why other amounts has not been
received within six months.
SEZ office put hold on our softex; though we submitted them they were not processed. Our Banker
requested certified copies of Softex; because they have fear that its unauthorized foreign investment;
hence they wanted us to prove it is export revenue by submitting Softex forms.
Because of above mentioned we requested clients to hold the amount with them till Softex forms are
certified. Later we requested them to pay our suppliers directly this has been advised to us by local
financial advisor. We have been told as per RBI regulations Netting out export revenues with payment
for imports is possible as long as export entity and import entity is same and client / supplier is abroad.
As soon as our softex has been certified we will request them to remit the balance amount. We would
like to see your advice on this.
Unit has branch in USA and branch recovered some amounts and paid certain expenses primarily
compensation; same was not booked as compensation expenditure in SEZ unit balance sheets ending
31.01.2012 and why branch expenditure was booked to SEZ unit.
USA Branch is exclusively performing SEZ unit on site activities; because it’s exclusively performing
SEZ unit activities it’s expenses are booked as SEZ unit. If this not correct please let us know we will
remove them as SEZ unit expenses. We submitted separate provisional balance sheet for branch and
SEZ unit as requested by SEZ Authorities.
As per initial LOA exports were projected as 8.03 cores; but 7.9 cores were shown as exports in
financial year 2011 itself and 81 Cores in financial year 2012 with just 20 employees, explain
We hired third party agency to prepare LOI to seek admission into SEZ. Third party agency project 8.03
cores because of lack of knowledge in our business process. After we started SEZ activities we have
asked to attended UAC meeting and explain the same. We attended UAC meeting provided our
explanation; The Then Development Commissioner satisfied with our explanation as asked her us
execute new custom bond with new projects and it’s been approved
We would like to bring to your kind attention we always has approximately 40. Same thing was brought
to UAC attention in UAC meeting. Attendance reports, payroll ledgers and forms 16 were submitted to
SEZ Authorities.
Are there any proceedings pending/decided against your unit / directors in respect of violation of any
rules by any Government agency?
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We would like to bring it your kind attention that there are no proceedings or cases against unit or
directors. Same thing has been asked in UAC meeting; it’s verified and confirmed that there are no
proceedings or cases against unit or directors. Not in violations of any rules by any Government agency.
Discrepancy in ledger of SEZ unit and its bank statements
Its unfortunate Ledger submitted has clerical mistakes. We to have make payment for an amount of
USD $ 13, 98,101Stratedge; but amount entered in ledger is wrong.It’s corrected now.
Because of softex are not certified, has issues from our banker. So requested our client to make payment
to Amalgam directly. Therefore we made an entry into our ledger that payment is made; obviously there
will not be any debit in Bank statement because payment is made by our buyers.
Unit received USD 214,587 from 4 companies to whom unit have not supplied anything. Information
about STPI unit and how books of accounts are maintained for both units
Above mentioned amount has been received for the work performed by our STPI unit. Our STPI unit
operations are separate did not performed by work to SEZ unit clients. We are maintaining separate
books for SEZ and STPI units. Our STPI unit conducted work for Amalgam for which received payment
of USD 1,01,213.
Miscellaneous items; how business is conducted such as ECGC policy, LC for Imports and exports,
correspondence with buyers and suppliers regarding efforts made to collect income / payments,
exports/imports advance payment for technical support and maintenance; value of planet and machinery,
capital goods, duty exemptions, penalties etc
We would like to bring it to your kind attention that LC is not generally followed in our industry
Copies of email correspondence with buyers / supplier were already provided to SEZ officials
We do not have ECGC policy for exports.
Warranty, maintenance is generally included along with purchase price. For easiness of
operations we created separate billing for technical support and maintenance. Generally in
industry annual billing for technical support is common; but it’s between client / vendor mutual
acceptance. We negotiated for three years and offered great discount this to improve our cash
flows. We would like to bring to you kind attention we already /in the process of cancelling /
transferring our maintenance contracts because of serious cash flow issues created with softex
being on hold. For which we will be submitting request to SEZ authorities to withdraw softex
submitted to cover technical support / maintenance work.
We would like to bring to your kind attention that for technical support and maintenance services
it’s not mandatory that same company has to design and develop software. Company A shall
design, develop software and same shall be technically supported by company B.
In fact as stated above we are negotiating with both companies to transfer technical support work
to another OnSite Company. If they do not agree we will be requesting them for cancellation of
contract.
As per initial plan we are supposed hire more people and rent more space to execute these
contracts for which we require huge amount of cash flows. Because softex were on hold we are
not able to recover our export revenues and facing serious cash flow issues. We are not in
position to execute these contacts any more. Upon approval from clients we will be submitting
request to withdraw our softex
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We usually hire local contractor for onsite works; we never deputed any off shore SEZ
employees to onsite work. If we work in US timing productivity is high. Most of the software
companies will have at least 3-5 hours of overlapping period with on site; we extended for 6-7
hours of overlap period to have more client interaction and to have more productivity.
We would like to bring to your kind attention that we did not avail any customs benefits. Initially
we are not too aware of the process. Later since more than 1 year we have facing issues with
SEZ authorities; hence decided not avail any benefits because amount of benefit is small.”
During the meeting some more issues were raised like non-submission of certain documents like
IT returns and e-mail correspondence. The unit replied that he would submit all documents asked for but
will not be able to submit e-mail correspondence as the server hosting their e-mails has been re-cycled.
The Committee has taken note that the unit has some prestigious clients like Timewarner as end
client. The Committee has therefore requested that the unit may submit contract copies with end clients.
The Committee has decided that Softex Forms will be examined. Softex Forms submitted for
maintenance works will be cleared only after submission of supporting documents. Softex forms of
other works will be cleared to a maximum of Rs15 crore or to the extent of foreign exchange received
by the unit. Remaining Softex Forms will be cleared based on progress of investigation. The Softex
Forms will be cleared without any prejudice to investigation.
This issues with the approval of the Development Commissioner and Chairperson, UAC.
(K. NAVEEN REDDY)
Assistant Development Commissioner