MINUTES of the JOINT MEETING of the APPROVAL COMMITTEES for Sezs

MINUTES OF THE JOINT MEETING OF THE APPROVAL COMMITTEES FOR SEZs

The Joint Meeting of the Approval Committees was held on 02.09.2011 at 11.00 AM at VSEZ Sub-Office, Hyderabad.

Members Present:

1)Shri R. Manohar, IRS, Commissioner of Customs & Central Excise, Hyderabad-III Commissionerate, Hyderabad.

2)Shri Shrikant Patil, IRS, Additional Commissioner of Customs & Central Excise, Hyderabad-IV Commissionerate, Hyderabad.

3)Shri V.M. Mahidhar, IRS, Assistant Commissioner of Income Tax-II, Hyderabad.

4)Shri M. Daya Sagar, IRS, Additional Commissioner of Income Tax, Hyderabad.

5)Shri J.S. Chandrashekar, IRs, Additional Commissioner of Customs & Central Excise, Guntur Commissionerate.

6)Dr. H.K. Nagu, Additional Commissioner of Labour, Government of Andhra Pradesh.

7)Shri P.S. Murthy, Joint Director, IT & C Department, Government of Andhra Pradesh.

8)Shri P. V. Prasad, FTDO, Office of the Jt. DGFT, Hyderabad.

9)Shri M.B. Surya Prakasa Rao, Deputy Director, District Industries Centre, Ranga Reddy District, Andhra Pradesh.

10)Shri Ch. V.V.S. Prasad, Chief General Manager, Andhra Pradesh Industrial Infrastructure Corporation Limited, Hyderabad.

11)Shri E. Satyanarayana, Assistant Director, District Industries Centre, Mahaboob Nagar District, Andhra Pradesh.

12)Shri Shiva Prasad, Representative, M/s. Phoenix Infocity Pvt. Limited, Andhra Pradesh. (Special Invitee)

13)Shri D. Gunalaan, Representative, M/s. Infosys Technologies Limited, Andhra Pradesh. (Special Invitee)

14)Shri D. Srinivasulu, Representative, M/s. DLF Commercial Developers Limited, Andhra Pradesh. (Special Invitee)

15)Shri G. Narayana Rao, Representative, M/s. NSL SEZ (Hyderabad) Pvt. Limited, Andhra Pradesh. (Special Invitee)

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 08.07.2011.

The Approval Committee ratified the Minutes of the Joint Meeting of the Approval Committees held on 08.07.2011.

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. 2 (a) :Proposal of M/s. Patni Computer Systems Limited for setting up of an unit for IT/ITES in M/s. Phoenix Infocity Pvt. Limited, IT/ITES SEZ at Gachibowli Village, Serilingampally Mandal, Ranga Reddy District, Andhra Pradesh.

The Approval Committee discussed and approved the proposal.

AGENDA Item No. 2 (b) :Proposal of M/s. Phoenix Infocity Pvt. Limited, Developer, IT/ITES SEZ at Gachibowli Village, Serilingampally Mandal, Ranga Reddy District, Andhra Pradesh for approval for Additional List of Services.

The Approval Committee felt that the list needs further discussion and deferred the proposal.

AGENDA Item No. 2 (c) :Proposal of M/s. Phoenix Infocity Pvt. Limited, Developer, IT/ITES SEZ at Gachibowli Village, Serilingampally Mandal, Ranga Reddy District, Andhra Pradesh for approval for permission to Lease Space in SEZ for Cafeteria Operations(to Thackers Hospitality Services (P) Ltd).

The Approval Committee discussed and approved the proposal.

AGENDA Item No. 2 (d) :Proposal of M/s. Phoenix Infocity Pvt. Limited, Developer, IT/ITES SEZ at Gachibowli Village, Serilingampally Mandal, Ranga Reddy District, Andhra Pradesh for approval for additional Incubation Spaceof 2,19,400 sq. ftin their SEZ.

The Approval Committee discussed and approved the proposal in terms of Instruction No.54.

AGENDA Item No. 2 (e) :Proposal of M/s. ValueLabs Technologies for setting up of an unit for IT/ITES in M/s. Phoenix Infocity Pvt. Limited, IT/ITES SEZ at Gachibowli Village, Serilingampally Mandal, Ranga Reddy District, Andhra Pradesh.

The Approval Committee discussed and approved the proposal subject to submission of financial projections for five years as the unit had given projections for only three years.

APPROVAL COMMITTEE FOR M/s. INFOSYS TECHNOLOGIES LIMITED, SPECIAL ECONOMIC ZONE FOR IT/ITES AT POCHARAM VILLAGE, GHATKESAR MANDAL, RANGA REDDY DISTRICT, ANDHRA PRADESH

AGENDA Item No. 3 (a):Proposal of M/s. Infosys Technologies Limited, Developer, IT/ITES SEZ at Pocharam Village, Ghatkesar Mandal, Ranga Reddy District, Andhra Pradesh for approval for procurement ofMoisture/Density Gauge for ratification.

The Approval Committee ratified the proposal.

AGENDA Item No. 3 (b):Proposal of M/s. Infosys Technologies Limited, Developer, IT/ITES SEZ at Pocharam Village, Ghatkesar Mandal, Ranga Reddy District, Andhra Pradesh for approval for list of material for RMC plant.

The Approval Committee approved the list of materials for RMC plant subject to the unit not availing any O & M benefits (Appendix-A).

AGENDA Item No. 3 (c):Proposal of M/s. Infosys Technologies Limited, Developer, IT/ITES SEZ at Pocharam Village, Ghatkesar Mandal, Ranga Reddy District, Andhra Pradesh for approval for list of material for Multi-Level Car Parking & Employee Care Centre.

The Approval Committee approved the list of materials (Appendix-B).

AGENDA Item No. 3 (d) :Proposal of M/s. Infosys Technologies Limited, Developer, IT/ITES SEZ at Pocharam Village, Ghatkesar Mandal, Ranga Reddy District, Andhra Pradesh for approval for permission to enhance the value of chiller plants for ratification.

The Approval Committee ratified the proposal.

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 (a) :Proposal of M/s. Konylabs IT Service Pvt. Limited (Unit-3), unit in M/s. Divyasree NSL Infrastructure Pvt. Limited, IT/ITES SEZ at Raidurga Village, Serilingampally Mandal, 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 Approval Committee approved the following list of Services.

(A)Services listed in clause(i) of sub-rule (1) of rule 3 of the Export of Services Rules, 2005 in relation to an immovable property situated within the SEZ

Sl.No / Taxable Service / Clause of Sec65(105)
1 / Architect’s Services / (p)
2 / Interior Decorator’s services / (q)
3 / Works Contract Services / (zzza)

(B)Services listed in clause (ii) of sub-rule (1) of rule 3 of the Export of Services

Rules, 2005, as are wholly performed within the SEZ

1 / Cleaning activity Service / (zzzd)
2 / Commercial Training and coaching Service / (zzc)
3 / Courier Service / (f)
4 / Erection, Commissioning or installation services / (zzd)
5 / Management, Maintenance or repair service ( in respect of immovable properties) / (zzg)
6 / Outdoor caterer’s Service (within the Zone) / (zzt)
7 / Packaging Activity services / (zzzf)
8 / Security agency’s services / (w)
9 / Technical inspection and certification service / (zzi)
10 / Technical Testing and Analysis service / (zzh)

(C) Other Services

1 / Air travel Agent’s Services / (l)
2 / Banking and other financial service / (zm)
3 / Business auxiliary services / (zzb)
4 / Business Exhibition Services / (zzo)
5 / Business support services / (zzb)
6 / Cargo Handling service / (zr)
7 / Chartered Accountant’ Service / (s)
8 / Clearing and Forwarding agent’s services / (j)
9 / Company Secretary’s Services / (u)
10 / Computer network Services (Online information and database access or retrieval Service) / (zh)
11 / Consulting Engineer’s service / (g)
12 / Cost Accountant’s Services / (t)
13 / Customs House Agent’s Service / (h)
14 / General Insurance Service / (zl)
15 / Internet telecommunication services / (zzzu)
16 / Man power recruitment & supply agency’s Service / (k)
17 / Management or Business consultant’s services / (r)
18 / Port Services / (zn)
19 / Rail Travel Agent’s Service / (zz)
20 / Scientific or Technical consultancy service / (za)
21 / Telecommunication Services / (zzzx)
22 / Transport of Goods by Air Services / (zzn)
23 / Transport of Goods by Road Service / (zzp)
24 / Travel Agent’s service / (zzx)

AGENDA Item No. 4 (b) :Proposal of M/s. Wells Fargo India Solutions Pvt. Limited, unit in M/s. Divyasree NSL Infrastructure Pvt. Limited, IT/ITES SEZ at Raidurga Village, Serilingampally Mandal, Ranga Reddy District, Andhra Pradesh for inclusion of Information Technology Service in their List of Services.

The Approval Committee noted the unit’s claim that they have SEZand DTA Operations.

The Approval Committee discussed and approved the proposal(under 2(a)(iii) of notification 17).

AGENDA Item No. 4 (c) :Proposal of M/s. Keane India Limited (unit-1) for setting up of an unit for IT/ITES in M/s. Divyasree NSL Infrastructure Pvt. Limited, IT/ITES SEZ at Raidurga Village, Serilingampally Mandal, Ranga Reddy District, Andhra Pradesh.

The Approval Committee discussed and approved the proposal.

AGENDA Item No. 4 (d) :Proposal of M/s. Keane India Limited (unit-2) for setting up of an unit for IT/ITES in M/s. Divyasree NSL Infrastructure Pvt. Limited, IT/ITES SEZ at Raidurga Village, Serilingampally Mandal, Ranga Reddy District, Andhra Pradesh.

The Approval Committee discussed and approved the proposal.

AGENDA Item No. 4 (d) :Proposal of M/s. Divyasree NSL Infrastructure Pvt. Limited, Developer, IT/ITES SEZ at Raidurga Village, Serilingampally Mandal, Ranga Reddy District, Andhra Pradesh for approval for List of Services.

The Approval Committee noted the Developer’s claim that they have only SEZ Operations.

The Approval Committee approved the following list of Services.

(A)Services listed in clause(i) of sub-rule (1) of rule 3 of the Export of Services Rules, 2005 in relation to an immovable property situated within the SEZ

Sl.No / Taxable Service / Clause of Sec65(105)
1 / Architect Services / (p)
2 / Commercial or Industrial Construction Services / (zzq)
3 / Interior Decorator’s Services / (q)
4 / Legal consultancy Service / (zzzzm)
5 / Site formation and clearance, excavation and earth moving and demolition services / (zzza)
6 / Works contract service / (zzzza)

(B)Services listed in clause (ii) of sub-rule (1) of rule 3 of the Export of Services Rules, 2005, as are wholly performed within the SEZ

1 / Cleaning Activity Services / (zzzd)
2 / Commercial Training & Coaching Service / (zzc)
3 / Courier Service / (f)
4 / Erection, Commissioning or installation services / (zzd)
5 / Management, Maintenance or Repair Service / (zzg)
6 / Security Agency’s Services / (w)
7 / Technical Inspection and Certification services / (zzi)
8 / Technical Testing and Analysis Services / (zzh)

(C) Other Services

1 / Advertising Agency’s Services / (e)
2 / Chartered Accountants Services / (s)
3 / Company Secretary’s Service / (u)
4 / Consulting Engineer’s Services / (g)
5 / Cost Accountant’s Services / (t)
6 / Customs House Agent’s Services / (h)
7 / Internet Telecommunication Services / (zzzu)
8 / Market Research Agency’s Service / (y)
9 / Public Relations Management Services / (zzzs)
10 / Scientific or Technical Consultancy Services / (za)
11 / Telecommunication Services / (zzzx)
12 / Transport of Goods by Air Service / (zzn)
13 / Transport of goods by Rail Service / (zzzp)
14 / Transport of Goods by Road Service / (zzp)

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. 5 (a) :Proposal of M/s. Trianz Holdings Pvt. Limited, unit in M/s. Sundew Properties Pvt. Limited, IT/ITES SEZ at Madhapur Village, Serilingampally Mandal, Ranga Reddy District, Andhra Pradesh for approval for List of Services.

The unit has both SEZ and DTA Operations.

The Approval Committee approved the following list of Services.

LIST – I - Services Eligible for ab-initio exemption:

(A) Services listed in clause(i) of sub-rule (1) of rule 3 of the Export of Services Rules, 2005 in relation to an immovable property situated within the SEZ

Sl.No / Taxable Service / Clause of Sec65(105)
1 / Architect services / (p)
2 / Interior Decorator’s services / (q)
3 / Renting of immovable property / (zzzz)
4 / Works Contract services / (zzza)

(B)Services listed in clause (ii) of sub-rule (1) of rule 3 of the Export of Services

Rules, 2005, as are wholly performed within the SEZ;

Sl.No / Taxable Service / Clause of Sec65(105)
1 / Cleaning activity Service / (zzzd)
2 / Commercial Training or Coaching Service / (zzc0
3 / Convention services / (zc)
4 / Courier Service / (f)
5 / Erection, Commissioning or installation Services / (zzd)
6 / Event management service / (zu)
7 / Management, Maintenance or repair Service / (zzg)
8 / Outdoor caterer’S Service (within the Zone) / (zzt)
9 / Packagingactivity Service / (zzzf)
10 / Security agency’s Services / (w)
11 / Technical inspection and certification service / (zzi)
12 / Technical Testing and Analysis Service / (zzh)

Note: In terms of Ministry of Finance Notification No. 17/2011-ST, dated 1.3.2011, exemption is eligible only for those services which satisfy the condition of “wholly performed within the SEZ”. In case the said condition is not satisfied the Unit should opt for the refund route which is available by default.

LIST – II - Services eligible for claiming refund (services which fall outside the definition of wholly consumed service and can be categorized as those which are exclusively used by SEZ Unit for the authorized operations in the SEZ or shared with DTA operations)

Sl.No / Taxable Service / Clause of Sec65(105)
1 / Advertising Agency’s Service / (e)
2 / Air Travel Agent’s Services / (l)
4 / Banking and other financial service / (zm)
5 / Business auxiliary services / (zzb)
6 / Business exhibition Services / (zzo)
7 / Cargo handling service / (zr)
8 / Chartered Accountant’s Services / (s)
9 / Clearing and forwarding agent’s services / (j)
10 / Company Secretary’s Service / (u)
11 / Computer network Service (Online information and database access or retrieval Service) / (zh)
12 / Consulting Engineer’s Service / (g)
13 / Cost Accountant’s Service / (t)
14 / Custom House Agent’s Services / (h)
15 / General Insurance Service / (zl)
16 / Internet telecommunication services / (zzzu)
17 / Legal Consultancy Services / (zzzzm)
18 / Man power recruitment or supply agency’s Service / (k)
19 / Management or business consultant Services / (r)
20 / Market research agency’s Services / (y)
21 / Port Services / (zn)
22 / Processing and clearing house services / (zzzzi)
23 / Public relation Management Service / (zzzs)
24 / Rail travel agent’s Service / (zz)
25 / Scientific or Technical consultancy Service / (za)
26 / Storage & Ware Housing Service / (zza)
27 / Telecommunication Services / (zzzx)
28 / Transport of goods by air Services / (zzn)
29 / Transport of goods in by rail Service / (zzzp)
30 / Transported of goods by road Service / (zzp)
31 / Travel Agent’s Service / (zzx)

Note: 100% refund is eligible in respect of services utilized exclusively by the SEZ Unit. If the services are shared with the DTA operations of the Unit, then the refund will be on pro-rata basis.The jurisdictional Central Excise authority will be the final authority in this regard.

AGENDA Item No. 5 (b) :Proposal of M/s. Sundew Properties Pvt. Limited, Developer, IT/ITES SEZ at Madhapur Village, Serilingampally Mandal, Ranga Reddy District, Andhra Pradesh for approval for permission to move SEZ material (aluminium profiles for electroplating) to DTA for job work for ratification.

The Approval Committee ratified the proposal as per the provisions of Rule 41(3) and the conditions laid thereof.

AGENDA Item No. 5 (c) :Proposal of M/s. Sundew Properties Pvt. Limited, Developer, IT/ITES SEZ at Madhapur Village, Serilingampally Mandal, Ranga Reddy District, Andhra Pradesh for approval for modification in the material intended for procurementfor building No.20 for ratification.

The Approval Committee ratified the proposal (Annexure B).

AGENDA Item No. 5 (d) :Proposal of M/s. Sundew Properties Pvt. Limited, Developer, IT/ITES SEZ at Madhapur Village, Serilingampally Mandal, Ranga Reddy District, Andhra Pradesh for approval for additional list of Services.

The Developer has bothSEZ and DTA operations.

The Approval Committee approved the following list of Services.

LIST – I - Services Eligible for ab-initio exemption:

(B) Services listed in clause (ii) of sub-rule (1) of rule 3 of the Export of Services

Rules, 2005, as are wholly performed within the SEZ

1 / Management, Maintenance or Repair Service / (zzg)

Note: In terms of Ministry of Finance Notification No. 17/2011-ST, dated 1.3.2011, exemption is eligible only for those services which satisfy the condition of “wholly performed within the SEZ”. In case the said condition is not satisfied the Developer/Co-Developer should opt for the refund route which is available by default.

LIST – II - Services eligible for claiming refund (services which fall outside the definition of wholly consumed service and can be categorized as those which are exclusively used by SEZ Developer for the authorized operations in the SEZ or shared with DTA operations)

Sl.No / Taxable Service / Clause of Sec65(105)
1 / Public Relations Management Service / (zzzs)

Note: 100% refund is eligible in respect of services utilized exclusively by the SEZ Developer/Co-Developer. If the services are shared with the DTA operations of the Developer/Co-Developer, then the refund will be on pro-rata basis.The jurisdictional Central Excise Authority will be the final authority in this regard.

AGENDA Item No. 5 (e) :Proposal of M/s. Sundew Properties Pvt. Limited, Developer, IT/ITES SEZ at Madhapur Village, Serilingampally Mandal, Ranga Reddy District, Andhra Pradesh for approval for additional list of material for building No.20 for ratification.

The Approval Committee ratified the proposal(Annexure C).

AGENDA Item No. 5 (f) :Proposal of M/s. DSM Shared Services India Pvt. Limited, unit in M/s. Sundew Properties Pvt. Limited, IT/ITES SEZ at Madhapur Village, Serilingampally Mandal, Ranga Reddy District, Andhra Pradesh for approval for appointment of Directors on the Board of their company.

The unit submitted that there is no change in shareholding.

The Approval Committee approved the proposal.

AGENDA Item No. 5 (g) :Proposal of M/s. Sykes Business Services of India Pvt. Limited, unit in M/s. Sundew Properties Pvt. Limited, IT/ITES SEZ at Madhapur Village, Serilingampally Mandal, 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 Approval Committee approved the following list of Services.

(A)Services listed in clause(i) of sub-rule (1) of rule 3 of the Export of Services Rules, 2005 in relation to an immovable property situated within the SEZ

Sl.No / Taxable Service / Clause of Sec65(105)
1 / Architect’s Services / (p)
2 / Interior Decorator’s services / (q)
3 / Works Contract Services / (zzza)

(B)Services listed in clause (ii) of sub-rule (1) of rule 3 of the Export of Services

Rules, 2005, as are wholly performed within the SEZ

1 / Commercial Training and coaching Service / (zzc)
2 / Courier Service / (f)
3 / Event management service / (zu)
4 / Security agency’s services / (w)

(C) Other Services

1 / Advertising Agency’s Service / (e)
2 / Air travel Agent’s Services / (l)
3 / Banking and other financial service / (zm)
4 / Cargo Handling service / (zr)
5 / Chartered Accountant’ Service / (s)
6 / Computer network Services (Online information and database access or retrieval Service) / (zh)
7 / Customs House Agent’s Service / (h)
8 / General Insurance Service / (zl)
9 / Internet telecommunication services / (zzzu)
10 / Telecommunication Services / (zzzx)
11 / Transport of Goods by Air Services / (zzn)
12 / Transport of Goods by Road Service / (zzp)

AGENDA Item No. 5 (h) :Proposal of M/s. OMICSONLINE Pvt. Limited for setting up of an unit for IT/ITES in M/s. Sundew Properties Pvt. Limited, IT/ITES SEZ at Madhapur Village, Serilingampally Mandal, Ranga Reddy District, Andhra Pradesh.

The Approval Committee discussed and approved the proposal subject to submission of a) Corrected NFE Sheet, b) Revised Investments figures, c) Letter on copy right issue.