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State of Rajasthan - Section

Section 2 in Sales Tax New Deferment Scheme For Industries, 1989

2. Definitions.

(a)"New Industrial Unit" means an Industrial unit which commences commercial production during the operative period of the New Deferment Scheme but will not include:(i)an Industrial unit established by transferring or shifting or dismantling an existing industry; and(ii)an industrial unit established on the site of an existing unit manufacturing similar goods.[Explanation I- Date of commencement of commercial production means the 61st day after the day on which the raw material is, for the first time, put in the process of production including trial production.] [Renumbered by Notification No. F.4(11)FD/GR.IV/91-105 dated 21.02.1991 Published in Rajasthan Gazette Extraordinary 4-C(ii) dated 22.2.91 page 687.][Explanation II-Very Prestigious Electronic Industrial Unit may use the dismantled machinery of an existing industry upon twenty percent of its investment in plant and machinery.] [Added by Notification No. F.4(11)FD/GR.IV/91-105 dated 21.02.1991 Published in Rajasthan Gazette Extraordinary 4-C(ii) dated 22.2.91 page 687.](b)"Sick Industrial Unit" means -(i)[ an Industrial unit which has incurred cash losses in two complete and consecutive financial years immediately proceeding the commencement of this scheme or during the operative period thereof, and is likely to continue to incur cash losses in the next financial year.] [Substituted by Notification No. F.4(86)FD/GR.IV./89-Pt-29 dated 24.8.1992 Published in Rajasthan Gazette Extraordinary 4-C(ii) dated 24.8.92 page 189-7.] and has an erosion on account of cumulative cash losses to the extent of 50% or more of its net worth and being potentially viable is taken up by a Central or State Level financial institution or a bank, under a programme of rehabilitation; or(ii)an industrial unit which is declared sick during the operative period of this scheme by the Board for Industrial and Financial Reconstruction under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 and which is taken up by a Central or State level financial institution or a bank under a programme of rehabilitation; or(iii)a closed industrial unit which is taken over and sold during the operative period of this scheme to a new management by RIICO or RFC.(c)[ ‘Eligible Area' means the area other than the Banned Areas.] [Substituted by Notification No. F.4(92)FD/GR.IV/91-56 dated 07.09.91 Published in Rajasthan Gazette Extraordinary 4-C(ii) dated 07.09.91 page 211-53.](d)[ "Banned Areas" means the areas under:- [Substituted by Notification No. F.4(92)FD/GR.IV/91-56 dated 07.09.91 Published in Rajasthan Gazette Extraordinary 4-C(ii) dated 07.09.91 page 211-53.](i)The urban Agglomeration limits of Jaipur and Kota; and(ii)Municipal/UIT Limits of all towns:Provided that industrial units located in the industrial areas developed/financed by the State Government or its Corporations [prestigious electronic units] and very prestigious electronic units and sick units as defined in clause 2(b) and located anywhere in the State, shall be eligible for Incentive provided under this notification.](e)"Eligible fixed capital investment" means investment in :-(i)land;(ii)New buildings;(iii)New plant and machinery and imported second hand machinery from outside the country and installation expenditure capitalised for plant and machinery;(iv)Capitalised interest during construction not exceeding 5% of the total fixed capital investment; and(v)Technical know-how fees or drawing fees paid in lump sum to foreign collaborators or foreign suppliers as approved by Government of India or paid to laboratories recognised by the State Government or Central Government.Explanations. - (1) Working capital (whether raised through Banks or otherwise and including working capital margin). Goodwill fees, engineering fees, commissioning expenses, royalties capitalised or otherwise, preoperative expenses, expenditure on trucks, cars, vans, trailors, tractors and transport vehicles and catalysts will not be considered as eligible capital investment for the purpose of this scheme.
(2)Plant and Machinery used or installed anywhere in India and shifted, purchased, leased, hired, licensed or transferred in any manner will not be considered as fixed capital investment eligible for the Sales Tax Deferment.
(3)In case of new industrial unit, only those assets which are acquired and paid for during the operative period of this scheme, and not before 1.4.85 will be eligible for the deferment of tax under this scheme. [But in case of a unit covered by clause 2(aa) the assets acquired and paid for during the period starting from 5th March, 1987 and ending on 31st March, 1997, will be considered for claiming the benefits under this scheme.] [Added by Notification No. F.4(86)FD/GR.IV/89-35 dated 27.08.1992 Published in Rajasthan Gazette Extraordinary 4-C(ii) dated 27.8.92 page 197-9.]
(4)In case of industrial units going in for expansion or diversification, only those assets which are acquired and paid for during the operative period of this scheme will be eligible for the sales tax incentive under this scheme.
(f)"Expansion" means increase in the value of fixed capital investment by not less than 25% of the net fixed assets of the existing project and accompanied by an increase in the production to the extent of at least 25% of the original licensed/registered capacity.
Explanation - The benefits of sales tax deferment for expansion shall be admissible to the eligible units only after they have achieved at least 85% of their licensed/registered capacity before expansion.
(g)"Diversification" means launching of new product line under the same company, firm or partnership provided that the total fixed capital investment in such a diversification exceeds at least 25% of the value of the net fixed assets of the original project.
(h)"Pioneering Unit" means the first "new industrial unit" established in any Panchayat Samiti of the State during the period of this scheme in which investment in fixed capital exceeds Rs.3.00 crores and the minimum permanent employment is 100 persons.
(i)"Prestigious Unit" means a "new industrial unit" first established in any panchayat Samiti of the State during the period of this scheme in which investment in fixed capital exceeds Rs. 10.00 crores with a minimum permanent employment of 250 persons or a"new industrial unit" having a fixed capital investment exceeding Rs.25.00 crores and with a minimum permanent employment of 250 persons, [or a new electronic industrial unit having fixed capital investment exceeding Rs. 25.00 crores.] [Inserted by Notification No. F.4(86)FD/GR.IV/89-39 dated 29.08.1992 Published in Rajasthan Gazette Extraordinary 4-C(ii) dated 29.08.1992 page 201-7.]
(ii)[ "Very Prestigious Unit" means 'a new industrial unit' established in any Panchayat Samiti of the State during the period of this scheme in which investment in fixed capital is Rs. 100 Crores or more.] [Inserted by Notification No. F.4(66)FD/GR.IV/82-83 dated 06.12.90 Published in Rajasthan Gazette Extraordinary 4-C(ii) dated 06.12.90 page 562.]
[However, in case of a unit covered by clause 2(aa), the progressive investment of the amount of project cost as appraised by the financial institutions shall be considered as investment made by a new unit, and as soon as such investment reaches or crosses the point of Rs. 100.00 crores. the unit shall acquire the status of a very prestigious unit for the purpose of claiming enhanced proportionate benefits under the scheme.] [Added by Notification No. F.4(86)FD/GR.IV/89-35 dated 27.08.1992 Published in Rajasthan Gazette Extraordinary 4-C(ii) dated 27.8.92 page 197-9.]
(j)"Ineligible industries" means the industries listed in Annexure B to this notification which will not be eligible for deferment of tax :
[Provided that the restriction imposed in this clause shall not apply to a sick unit as defined in sub-clause (b) of this clause.] [Inserted by Notification No. F. 4(86)FD/GR. IV/89-74 dated 27.12.1989 Published in Rajasthan Gazette Ordinary 4-C(ii) dated 08.11.90 page 197-9.][Provided further that large scale new cement plants established, except in Tribal sub-plan are. shall be entitled to deferment of tax as provided in Clause 4 of this notification.] [Inserted by Notification No. F.4(8)FD/GR.IV/91-122 dated 06.03.91 Published in Rajasthan Gazette Extraordinary 4-C(ii) dated 06.03.91 page 732.][Provided further that Oil extracting or manufacturing industry, whether new or going for expansion or diversification, shall be entitled to claim deferment of tax as provided in Clause 4 of this notification.] [Inserted by Notification No. F.4(8)FD/GR.IV/90/36 dated 26.07.1991 Published in Rajasthan Gazette Extraordinary 4-C(ii) dated 29.7.91 page 155-4.]
(k)"Screening Committee for Eligibility Certificates".-In order to avail the facility available under "New Deferment Scheme" the applicant Industrial unit will have to obtain sanction from the State or District Level Screening committees, as the case may be.
(i)The State level Screening committee which will grant sanction in respect of large scale units will consist of the following: -
1. Secretary, Industries Chairman
2. Chairman and Managing Director, RIICO Member
3. Commissioner, Commercial Taxes Department Member
4. Director of Industries Member Secretary
(ii)The District Level Committee, which will grant sanction to medium and small scale units, will consist of the following: -
1. Collector of the district Chairman
2. Representative of the Commercial Taxes Department(nominated by Commissioner) Member
3. Branch Manager, concerned of Rajasthan FinancialCorporation Member
4. Representative of RIICO in case of medium scale units whereRIICO is the lead institution. Member
5. General Manager, District In Industries, Centre Member Secretary
Note. - 1. (a) small scale unit means a unit of which the investment in plant and machinery does not exceed Rupees [sixty] [Substituted by Notification No. F.4(86)FD/GR.IV/89-19 dated 17.06.1992 Published in Rajasthan Gazette Extraordinary 4-C(ii) dated 18.6.92 page 103-6.] lakhs.
(b)Medium scale unit means a unit of which the project cost does not exceed rupees five crores.
(c)Large scale unit means a unit of which the project cost exceeds rupees fives crores.