OWS Technical Services has extended this concept by offering manufacturing services for its international clientele based on the same SEZ model.
The basic concept is as follows:
OWS Technical Services provides the basic infrastructure for setting up a manufacturing plant such as covered warehouse, utilities, and even manpower.
The customer provides capital equipment and initial training staff according to requirements. As the capital equipment is to be used inside the SEZ, it does not attract any import duties (in case of non-Indian origin equipment) or local taxes (in case of Indian origin equipment).
OWS Technical Services procures necessary raw material based on order quantity specified by the customer. As this is to be processed inside the SEZ it does not attract any duties or taxes.
The customer retains ownership of all capital assets as well as the finished goods at all times. OWS Technical Services only provides the manufacturing services.
The end product can be freely exported to any third country without attracting any local taxes or duties in India
International companies can leverage the vast and economical skilled labour market of India without having to go through the hassle of forming a local company
All input taxes and duties are completely eliminated from all capital goods and raw material
No restrictions on export
OWS Technical Services assumes all the liability of local compliances including labour licenses, environmental clearances, etc.
Sale of the end product in India or outside will not attract any income tax for the customer