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State of Punjab - Section

Section 4 in Punjab General Sales Tax (Deferment and Exemption) Rules, 1991

4. Quantum of entitlement.

(1)The deferment of, or exemption from, the liability to pay tax under the Act, shall be available with regard to group of industries subject to the maximum benefits as per table given below :-TABLEMaximum benefit of deferment of or exemption from tax
Sl. No. Group of Industries To small scale Industries To medium and large scale industries Total time limit within which concession will be available
1 2 3 4 5
1 'A' One hundred and fifty per cent of the fixed capital investment One hundred and twenty five per cent of the fixed capitalinvestment subject to a maximum of six crore of rupees One hundred and eight months from the production starts.*[Provided that in the case of units located in the GoindwalIndustrial Complex, the period shall be one hundred and twentymonths commencing from the date the production starts]
2 'B' One hundred and twenty five per cent of the fixed capitalinvestment Hundred per cent of the fixed capital investment subject to amaximum of four and a half crore of rupees. Eighty-four months from the date the production starts.
3 'C' One hundred per cent of the fixed capital investment Ninety per cent of the fixed capital investment subject to amaximum of three crore of rupees. Sixty months from the date the production starts.
4 'D' No industry block Nil One hundred and twenty five per cent of the fixed capitalinvestment subject to a maximum of six crore of rupees (Only for'F' group industries.) One hundred and twenty months from the date the productionstarts.
5 'E' Sick Industries -------- -------- --------
6 'F' Nil ------- *[One hundred and twenty months from the date the productionstarts in the case of the units located in Goindwal IndustrialComplex.
7 'G' Nil Nil --------
*Added in column 1 and 6 by GSR. 91/PA.46/48/Ss. 27,10A & 30A/Amd(5)/93 dated 11.11.1993.[Provided that the electronic units which came into production on or after the 24th day of June, 1991 shall be eligible for deferment of and exemption from the liability to pay tax under the Act for a period] [Proviso added by GSR. 81/P.A.46/48/Ss. 27, 10A and 30A/Amd(8)/94 dated 1.12.1994.] of [ten] [Substituted forwards 'seven' vide No. GSR 24/P.A. 46/48/Ss. 27, 10-A & 30- A/Amd/12/97 dated 22.5.1997.] years from the date of their coming into production for the first time in the State of Punjab.Note :- The period specified in sub-rule (1) for availing the benefit of deferment of, or exemption from the liability to pay tax shall be reckoned from the date of commencement of production by a unit [-] [ The words 'or the date of publication of this notification in the official gazette whichever is later' shall omitted by No. G.S.R. 41/P.A. 46/48/Ss. 27, 10-A and 30-A/Amd. (10)/95 dated 19.7.1995. w.e.f. 1.4.1989.].
(2)For calculating the maximum benefit available in respect of a unit under sub-rule (1), the liability to pay tax under the Act as well as under the Central Sales Tax Act, 1956, shall be taken into account.
(3)The units undergoing expansion or modernisation shall be entitled to the benefit under sub-rule (1) on incremental production.
(4)The expansion or modernisation or both parts of a unit shall be taken into account for the purpose of determining the deferment of, or exemption from the liability to pay tax under the Act, provided that a separate account for the additional and incremental production resulting from such expansion or modernisation or both is maintained.Explanation. - "Incremental production" in relation to expansion or modernisation shall mean production over and above either the installed capacity or actual production before expansion or modernisation, whichever is more.
(5)The units undertaking diversification shall be entitled to the benefit under sub-rule (1) only on the additional items produced as a result of such diversification for which a separate account shall be maintained.
(6)The unit shall have the option to avail the benefit of either deferment of, or exemption from, the liability to pay tax under the Act:Provided that such an option shall be exercised in Form ST(D&E) VIII within thirty days from the date of the issue of the final notification or from the date of issue of the eligibility certificate, as the case may be, and the option once exercised shall be final.
(7)The maximum quantum of deferment of an exemption from the liability to pay tax under the Act shall be calculated at the prevalent rates of tax payable on the taxable turnover of the concerned unit.