Section 10 in Rajasthan Investment Promotion Scheme, 2014
10. 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, for the enterprises other than those making investment in the Backward Area and Most backward Area the total amount of subsidy paid shall not exceed the eligible fix capital investment as approved by the appropriate Screening Committee.10.2Period of Benefit: The period of benefit, wherever applicable, shall be counted from the from the date of the issuance of the Entitlement Certificate, unless otherwise specified in the scheme10.3Employment Generation Subsidy. - 10.3.1 The amount of employment generation subsidy per employee per year shall be Rs.30,000 for Women/ SC/ST/ Person with disability (PwD) categories of employees and Rs 25,000 for others:Provided that for the enterprises of Agro-processing and Agri-marketing sector the amount of employment generation subsidy per employee per year shall be Rs. 37,500/- for Women/ Scheduled Caste (SC)/ Schedule Tribe (ST)/Person with disability (PwD) categories of employees and Rs 30,000/- for others:Provided further that for Women/ Scheduled Caste (SC)/ Schedule Tribe (ST)/ Person with disability (PwD) enterprise, the amount of employment generation subsidy per employee per year shall be Rs.35,000 for Women/ Scheduled Caste (SC)/ Schedule Tribe (ST)/ Person with disability (PwD) category of employees and Rs 30,000 for others:[Provided further that for enterprises other than cement manufacturing enterprises, making investment in backward and most backward area, the amount of employment generation subsidy per employee per year for bonafide resident of Rajasthan shall be Rs. 40,000/- for women/Scheduled Caste (SC)/Scheduled Tribe (ST)/person with disability (PwD) category of employees and Rs. 35,000/- for others.] [Added by Rajasthan Notification No. F. 12(14) FD/Tax/2017-125, dated 8.3.2017 (w.e.f. 8.10.2014).]10.3.2The amount of employment generation subsidy shall be calculated on monthly basis.10.3.3The 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.10.4Subsidy in case of expansion and revival of sick industrial enterprises. - 10.4.1 In case of expansion and revival of sick industrial enterprises, the subsidy shall be calculated on the amount of additional tax (VAT + CST) payable and deposited after Expansion or revival, as the case may be, over and above the maximum annual tax (VAT + CST) payable for any of the three years immediately preceding the year of the commencement of commercial production/operation or revival of sick industrial enterprise, as the case may be. Where the tax rate differs in the three years immediately preceding the year of the commencement of commercial production/ or revival of sick industrial enterprise, the maximum annual tax payable shall be rationalized by considering the highest tax rate in these three years. In case of change in the rate of tax of any goods, the maximum annual tax, in the three years immediately preceding the year of the commencement of commercial production/ or revival of sick industrial enterprise, as the case may be, shall be calculated at the new tax rate(s).10.4.2In case of expansion, employment generation subsidy for a month shall be allowed only for the employees appointed under expansion over and above the existing employees.10.4.3In case of revival of sick industrial enterprises, employment generation subsidy for a month shall be allowed only for the employees appointed over and above the maximum employment level attained in any month during the preceding three years from the date of its declaration as a sick industrial enterprise.10.4.4In case of expansion and revival of sick industrial enterprises, the employment generation subsidy shall not exceed 20% of VAT and CST deposited over and above the maximum annual tax (VAT + CST) payable for any of the three years immediately preceding the year of the commencement of commercial production/operation or revival of sick industrial enterprise, as the case may be, calculated as per clause 10.4.1.10.5Maximum Extent of Exemption of Mandi Fee. - The total amount of exemption of Mandi Fee shall not exceed the Eligible Fixed Capital Investment (EFCI) as approved by the appropriate Screening Committee.10.6Exemption in cases of expansion and revival of sick industrial enterprises. - 10.6.1 The exemption of luxury tax, electricity duty, entertainment tax and mandi fee shall be allowed only on the additional volume of turnover or additional consumption of electricity, as the case may be, achieved/ made by the enterprise after expansion or revival of the sick industrial enterprise, as the case may be, over and above the maximum annual turnover / maximum annual consumption of electricity, in any of the three years immediately preceding to the year of the commencement of commercial production/operation or revival of sick industrial enterprise, as the case may be, on which such tax/ duty/ fee was payable and has been deposited (unless exempted under RIPS-2003 or RIPS-2010 or under this Scheme) into the Government exchequer. This exemption in any year shall be allowed only after attainment of the maximum annual turnover or maximum annual consumption of electricity, as the case may be, of the three years immediately preceding to the year of the commencement of commercial production/operation or revival of sick industrial enterprise, as the case may be, in that year.10.6.2The exemption from land tax shall be provided only on the additional area of land on which land tax is payable after expansion or revival of the sick industrial enterprise, as the case may be, over and above the area of land on which such tax was payable and deposited (unless exempted under RIPS-2003 or RIPS-2010 or under this Scheme) into the government exchequer before expansion or revival of the sick industrial enterprise, as the case may be.10.7Textile 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 as specified under the TUF 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)(bb)The interest subsidy shall be allowed on the term loan as mentioned in subclause(b)above on the condition that the loan has been sanctioned on or after 22.07.2013.(c)The interest subsidy shall be available only for interest levied by the Financial Institution/Bank. Penal interest or other charges shall not be reimbursed.(d)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(e)The interest subsidy shall be given to the enterprise which pays regular installments and interest to the Financial Institution/bank. If the enterprise becomes a defaulter, it will not get interest subsidy for the default period and such defaulting period will be deducted from five years period as mentioned at (d) above. Action against defaulter shall be taken as per the RBI guidelines/approved terms & conditions of the Financial Institutions/bank.(f)The enterprise shall obtain acknowledgement of filing Entrepreneur's Memorandum (EM) with the concerned District Industries Center (DIC) or Industrial Entrepreneur's Memorandum (IEM) with Government of India.(g)Interest subsidy shall be available for plant and machinery as specified under the TUF Scheme of Government of India and in case of manufacturing of recycled fibre, for plant and machinery as may be specified by the State Government in Finance Department, duly certified by the competent authority like Chartered Engineer.10.7.2Reimbursement 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.(f)In case of expansion, the benefit of reimbursement of VAT shall be allowed only on the purchase of yarn, fibre, recycled fibre yarn, cotton and pet bottles, over and above the maximum amount of purchases of said goods in any of the three consecutive years immediately preceding to the year of expansion. This reimbursement in any year shall be allowed only after attainment of the maximum annual turnover of the three consecutive years immediately preceding to the year of the commencement of commercial production/ operation or revival of sick industrial enterprise, as the case may be, in that year.10.7.3Capital 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)The capital subsidy shall be allowed where the zero liquid discharge based effluent treatment plant has been set up by the enterprise along with the plant for manufacturing of textile by the enterprise. 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.(c)The zero liquid discharge based effluent treatment plant shall be set up by the enterprise 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.10.8Desalination sector:10.8.1Reimbursement of VAT for Desalination Sector. - (a) The reimbursement of VAT on purchase of capital goods within the State shall be allowed to the eligible enterprises for setting up of desalination plant for the capital goods purchased by it before the date of commencement of commercial production.(b)The reimbursement of VAT on purchase of membrane for use in desalination of water shall be allowed to the enterprise for seven years from the date of issuance of the Entitlement Certificate.(c)The enterprise shall get registration under Rajasthan Value Added Tax Act, 2003 and shall purchase capital goods from a dealer registered under Rajasthan Value Added Tax Act, 2003 against VAT invoice.(d)The enterprise shall furnish information regarding purchase of capital goods and membrane, as the case may be, made by him against VAT invoice, for use in setting up and/ or operating desalination plant within the State, through the official website of the Commercial Taxes Department in the manner as provided therein.(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 plant and machinery or equipment or membrane.10.9IT Sector:10.9.1Interest Subsidy. - (a) The interest subsidy shall be in addition to any other incentive available under any other Scheme of Government of India. However, where for any investment made by the enterprise, it is availing the benefit or incentives or subsidy under any other Scheme/package of State Government, the interest subsidy shall not be allowed on such investment.(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 IT Sector. Interest subsidy shall be provided to the extent that effective subsidy including subsidy 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).(c)The interest subsidy shall be available only for interest levied by the Financial Institution/Bank. Penal interest or other charges shall not be reimbursed.(d)The interest subsidy shall be allowed from the date of commencement of commercial production, for a period of five years or up to the period of repayment of loan, whichever is earlier.(e)The interest subsidy shall be given to the enterprise which pays regular installments and interest to the Financial Institution/bank. If the enterprise becomes a defaulter, it will not get interest subsidy for the default period and such defaulting period will be deducted from five years period as mentioned at (d) above. Action against defaulter shall be taken as per the RBI guidelines/approved terms & conditions of the Financial Institutions/bank.]10.10ESDM Sector- For Enterprises eligible to avail benefits under clause 9.5.5:10.10.1Investment Subsidy. - (a) The amount of investment subsidy shall be equal to 100% of the amount of VAT and CST which has become due and has been deposited by the enterprise.(b)The investment subsidy shall be allowed for a period of ten years from the date of issuance of entitlement certificate.(c)The investment subsidy shall not be allowed on within State sale of such goods, which has been subsequently sold by the purchasing dealer(s) in the course of inter- State trade or commerce and/or in the course of export outside the territory of India and/ or disposed of by the purchasing dealer(s) by way of stock transfer/depot transfer/ consignment transfer.(d)The amount of investment subsidy, if already allowed/ availed by the enterprise on the sale of such goods as mentioned in sub-clause (c) above, shall be reduced from the amount of Investment subsidy of the subsequent quarters of the year.(e)The investment subsidy shall be allowed without any limit or linkage with Eligible Fixed Capital investment (EFCI).10.10.2Interest Subsidy. - (a) The interest subsidy shall be in addition to any other incentive available under any other Scheme of Government of India. However, where for any investment made by the enterprise, it is availing the benefit or incentives or subsidy under any other Scheme/package of State Government, the interest subsidy shall not be allowed on such investment.(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 ESDM Sector. Interest subsidy shall be provided to the extent that effective subsidy including subsidy 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).(c)The interest subsidy shall be available only for interest levied by the Financial Institution/Bank. Penal interest or other charges shall not be reimbursed.(d)The interest subsidy shall be allowed from the date of commencement of commercial production, for a period of ten years or up to the period of repayment of loan, whichever is earlier.(e)The interest subsidy shall be given to the enterprise which pays regular installments and interest to the Financial Institution/bank. If the enterprise becomes a defaulter, it will not get interest subsidy for the default period and such defaulting period will be deducted from the period as mentioned at (d) above. Action against defaulter shall be taken as per the RBI guidelines/approved terms & conditions of the Financial Institutions/bank.(f)The maximum amount of interest subsidy shall not exceed fifty lac rupees per annum.10.11Agro-processing and Agri-marketing sector:10.11.1Interest Subsidy. - (a) The interest subsidy shall be in addition to any other incentive available under any other Scheme of Government of India. However, where for any investment made by the enterprise, it is availing the benefit or incentives or subsidy under any other Scheme/package of State Government, the interest subsidy shall not be allowed on such investment.(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 Agro-processing and Agri-marketing sector. Interest subsidy shall be provided to the extent that effective subsidy including subsidy 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).(c)The interest subsidy shall be available only for interest levied by the Financial Institution/Bank. Penal interest or other charges shall not be reimbursed.(d)The interest subsidy shall be allowed from the date of commencement of commercial operation, for a period of five years or up to the period of repayment of loan, whichever is earlier.(e)The interest subsidy shall be given to the enterprise which pays regular installments and interest to the Financial Institution/bank. If the enterprise becomes a defaulter, it will not get interest subsidy for the default period and such defaulting period will be deducted from the period as mentioned at (d) above. Action against defaulter shall be taken as per the RBI guidelines/approved terms & conditions of the Financial Institutions/bank.(f)The maximum amount of interest subsidy shall not exceed five lac rupees per annum.10.11.2Capital 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)The capital subsidy shall be allowed where the zero liquid discharge based effluent treatment plant has been set up by the enterprise along with the plant for manufacturing. 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 the plant for manufacturing.(c)The zero liquid discharge based effluent treatment plant shall be set up by the enterprise 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.10.12Bio-Technology Sector:10.12.1Interest Subsidy. - (a) The interest subsidy shall be in addition to any other incentive available under any other Scheme of Government of India. However, where for any investment made by the enterprise, it is availing the benefit or incentives or subsidy under any other Scheme/package of State Government, the interest subsidy shall not be allowed on such investment.(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 investment made in purchase of equipment for services related to Bio-technology sector. Interest subsidy shall be provided to the extent that effective subsidy including subsidy 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).(c)The interest subsidy shall be available only for interest levied by the Financial Institution/Bank. Penal interest or other charges shall not be reimbursed.(d)The interest subsidy shall be allowed from the date of commencement of commercial operation, for a period of five years or up to the period of repayment of loan, whichever is earlier.(e)The interest subsidy shall be given to the enterprise which pays regular installments and interest to the Financial Institution/bank. If the enterprise becomes a defaulter, it will not get interest subsidy for the default period and such defaulting period will be deducted from the period as mentioned at (d) above. Action against defaulter shall be taken as per the RBI guidelines/approved terms & conditions of the Financial Institutions/bank.(f)The maximum amount of interest subsidy shall not exceed five lac rupees per annum i.e. twelve calendar months.10.11.2Capital 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)The capital subsidy shall be allowed where the zero liquid discharge based effluent treatment plant has been set up by the enterprise along with the plant for manufacturing. 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 the plant for manufacturing.(c)The zero liquid discharge based effluent treatment plant shall be set up by the enterprise 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.
