“Investment” or “Eligible Fixed Capital Investment (EFCI)”means investment made
by an enterprise in fixed assets, in the following, up to the date of commencement of
commercial production:
(a) price paid for the land;
(b) cost of new factory sheds and other new industrial buildings;
(c) price paid for new plant and machinery or equipment;
(d) other investment made in new fixed assets essential for production of the unit as approved by the Screening Committee; and
(e) technical know-how fees or drawing fees paid in lump-sum to foreign collaborators or foreign suppliers or paid to laboratories recognized by the State Government or the Government of India.
However investment made in land in excess of 30% of the total investment/EFCI made and expenditure in purchase of existing factory sheds, industrial buildings and old plant and machinery by the Enterprise shall not be included in investment/EFCI;
“Screening Committee” means State/District level Screening Committee
(SLSC/DLSC) as mentioned in Annexure-II, appended to the Scheme, for sanction of
benefits under the Scheme;
S.No. Category Screening Committee Status
of Enterprise
1 MSME District Level Screening Committee (DLSC)
(a) District Collector Chairman
(b) Concerned Branch Manager of RFC in the District
(c) Concerned Senior Regional Manager/Regional
Manager of RIICO in the District Member
(d) Deputy/Assistant Commissioner, Commercial
Taxes/Commercial Taxes Officer of Commercial
Taxes Department Member
(e) Officer not below the rank of executive engineer,
as nominated by Secretary, Energy Member
(g) General Manager DIC Member-Secretary
2. Large Enterprises State Level Screening Committee (SLSC)
(a) Principal Secretary, Industries Chairman
(b) Secretary, Finance (Revenue) Member
(c) Secretary, Energy Member
(d) Commissioner, Investment & NRIs (BIP) Member
(e) Commissioner, Commercial Taxes Member
(f) CMD, RFC Member
(g) MD, RIICO Member
(i) Commissioner, Industries Member-Secretary
.
- An manufacturing enterprise shall be granted benefits and incentives as given below:
(i) Investment subsidy of 30% of VAT and CST which have become due and have been deposited by the enterprise for seven years.
(ii) Employment Generation Subsidy up to 20% of VAT and CST which have become due and have been deposited by the enterprise, for seven years.
(iii) Exemption from payment of 50% of Electricity Duty for seven years, provided that for enterprises engaged in tourism sector, it shall be restricted to 25% of the Electricity Duty;
(iv) Exemption from payment of 50% of Land Tax for seven years;
(v) Exemption from payment of 50% of Stamp Duty on purchase or lease of land and
construction or improvement on such land;
(vi) Exemption from payment of 50% of conversion charges payable for change of land use.
.
9.11 Textile sector: this is specially in case of the thrust sector
Enterprises making a minimum investment of twenty five lakh rupees in the textile sector shall
be granted the following benefits for the period as mentioned in clause 10.7 of the Scheme:
(a) 5% interest subsidy;
(b) additional 1% interest subsidy for enterprises making investment more than Rs25 crore;
(c) 7% interest subsidy for Technical Textile Sector;
(d) Capital Subsidy on zero liquid discharge based effluent treatment plant equivalent to 20% of amount paid to the suppliers for the plant excluding civil work, subject to a maximum of Rs1crore;
(e) 50% reimbursement of VAT on purchase of yarn, fibre, recycled fibre yarn, cotton and pet bottles for use in manufacture of goods within the State, for sale by him; and
(f) 50% exemption from payment of Entry Tax on capital goods, for setting up of plant for new unit or for expansion of existing enterprise or for revival of sick industrial enterprise, brought into the local areas before the date of commencement of commercial production/operation.
Provisions Related to Benefits
10.1. Maximum Extent of Subsidy: The maximum amount of subsidy (investment subsidy + employment generation subsidy + additional Investment subsidy) in any period shall not exceed the amount of VAT and CST due and paid in that period. Moreover, the total amount of subsidy paid shall not exceed the eligible fix capital investment as approved by the appropriate Screening Committee.
10.2. Period of Benefit: The period of benefit, wherever applicable, shall be counted from the date
of the issuance of the Entitlement Certificate issued under the Scheme.
10.3. Employment Generation Subsidy:
10.3.1 The amount of employment generation subsidy per employee per year for the year 2014-15 shall be Rs 30,000 for Women/SC/ST/Person with disability (PwD) categories of employees and Rs25,000 for others, and shall be calculated on monthly basis. And shall be increased by 5% on 1st April of every year.
10.3.3 The enterprise shall be eligible to avail employment generation subsidy only if it has
made contribution for EPF/ESI and in case it is not liable to contribute the EPF/ESI,
the enterprise shall get all employees insured for treatment of medical illness, at its
cost.
10.7 Textile Sector
10.7.1 Interest Subsidy:
(a) The interest subsidy shall be in addition to any other incentive available under any other scheme of Government of India. The enterprise availing the benefit or incentives or subsidy under any other scheme/package of State Government shall not be eligible to get benefit under the Scheme.
(b) The interest subsidy shall be allowed on the term loan taken from State Financial Institutions /Financial Institution/ Bank recognized by Reserve Bank of India for making investment in plant & machinery Scheme of Government of India. Interest subsidy shall be provided to the extent that effective subsidy including subsidy/reimbursement provided by Government of India under any scheme shall not exceed the amount of interest paid by enterprise to the financial institution(s)/bank(s) and disbursement of the loan is made within the operative period of the Scheme.
(c) The interest subsidy shall be allowed for a period of five years or up to the period of repayment of loan, whichever is earlier, from the date of commencement of commercial production in case of first repayment of term loan has taken place before the commencement of commercial production, otherwise from the date of first repayment of term loan.
10.7.2 Reimbursement of VAT:
(a) Reimbursement of VAT shall be made only to the enterprise manufacturing such goods, for sale by him, which are exempted from tax under Rajasthan Value Added Tax Act, 2003.
(b) The enterprise shall get registration under Rajasthan Value Added Tax Act, 2003 and shall purchase yarn, fibre, recycled fibre yarn, cotton and pet bottles from a dealer registered under Rajasthan Value Added Tax Act, 2003 on VAT invoice.
(c) The enterprise shall furnish information regarding purchase of yarn, fibre, recycled fibre yarn, cotton and pet bottles made by him against VAT invoice, for use in manufacturing of goods within the State, for sale by him through the official website of the Commercial Taxes Department in the manner as provided therein.
(d) Reimbursement of VAT shall be made to the enterprise eligible under the Scheme for five years from the date of issuance of the Entitlement Certificate issued under the Scheme.
(e) Enterprise shall not be eligible for reimbursement of VAT if the enterprise has claimed Input Tax Credit under Rajasthan Value Added Tax Act, 2003 on the purchase of yarn, fibre, recycled fibre yarn, cotton and pet bottles.
10.7.3 Capital Subsidy on Zero Liquid Discharge based Treatment Plant:
(a) The enterprise shall produce a certificate to the effect that the effluent treatment plant set up by it is a zero liquid discharge based effluent treatment plant from the Rajasthan State Pollution Control Board.
(b) No subsidy shall be allowed where zero liquid discharge based effluent treatment plant has been set up at a site other than the site of plant for manufacturing of textile by the enterprise. And to be set up during the operative period of the Scheme.
(d) The enterprise availing capital subsidy under any other scheme/package of the State Government shall not be eligible for capital subsidy under this Scheme.
11. Procedure for Claiming Incentives
- Stamp Duty and/or Conversion Charges:
- shall submit a duly completed application in Form-I, along with a project report duly certified by a
Chartered Accountant and an affidavit in support of the facts of the application, to the Member
Secretary of the appropriate Screening Committee
- Member Secretary of the appropriate Screening Committee shall register the
application and issue an entitlement certificate in Form-II, not later than seven days
- Member Secretary shall forward copies of the entitlement certificate in Form-II, to the concerned
Department/authority immediately. Thereupon, the stamp duty and/or conversion charges would be exempted to the extent as provided in clause 4 and 5 of the Scheme.
11.2 Claims for Exemption from Land Tax:
- Submit a duly completed application in Form-I, for availing of exemption from Land Tax, along with a project report duly certified by a Chartered Accountant and an affidavit in support of the facts of the application, to the Member Secretary of the appropriate Screening Committee.
- Screening Committee shall register the application and issue a provisional entitlement certificate in Form-III immediately but not later than seven days.
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