Section 9 in Incentives to Industries in Bihar, 1986
9. Sales-tax Relief.
(1)Sales Tax Relief on purchase of raw materials (whether processed or unprocessed).-Large, Medium Small and Tiny industrial units going into production on or after 1st September, 1986 will have the option either to avail of total exemption from payment of sales-tax on the purchase of raw materials (whether processed or unprocessed) or to get set-off of the amount paid as Bihar Sales Tax on purchase of raw-materials against the amount of Bihar Sales Tax payable on the sales of finished products. This facility will be available to the industrial units for a period of 5 (five) years on such raw-materials in respect of which facility of exemption or set-off is at present available under existing Government's Orders.(2)Interest-free Sales Tax Loan.- Large, Medium, Small and Tiny industrial units joint into production on or after 1st September, 1986 will get interest-free sales-tax loan without security equivalent to the Bihar Sales Tax paid after set-off, if any, and the amount realised by the State Government under Central Sales Tax Act will also be included for computing the amount of interest-free loan.This concession will be available for a period of 5 (five) years from the date of their production.(a)In case of small and tiny industrial units, the amount of loan will be subject to a maximum of Rs. 10 (ten) lakhs for the total eligibility period of 5 (five) years. In respect of 'A' category districts, the maximum limit will be Rs. 15 (fifteen) lakhs.(b)In case of large and medium industries, the maximum limit of sales-tax loan will be 10 per cent of the initial investment in fixed assets, subject to a maximum limit of Rs. 25 (twenty five) lakhs for the total eligibility period of 5 (five) years. In case of industrial units located in 'A' category districts, this limit will be Rs. 30.00 (thirty) lakhs for the total eligibility period of 5 (five) years.Note.-(a) Investment in fixed assets means investment in land, building, plants, machinery.The valuation of such investment will be as indicated in the balance-sheet duly audited and verified by an approved Chartered Accountant for the financial year for which the concession is being claimed.(b)In case of small scale industries, if in any particular year, a unit does not pay a minimum of Rs. 5,000 (five thousand) as sales tax on the sales of finished products after set-off, if any, the unit will not be entitled to sales tax loan for lesser amount so paid. However, the amount so paid will be carried forward to the next year for the purpose of eligibility of sales tax loan and the unit will be entitled to sales tax loan, if the sales tax paid amounts to at least Rs. 5,000 (five thousand).(c)The repayment of the sales tax loan will commence from the 6th year of the loan taken and will be repaid in five annual equal instalments. In case of default, interest@ 16% per annum will be charged.(d)Only such industrial units will be entitled to sales tax loan as are registered with the Department of Commercial Taxes for payment of Sales Tax.(e)The unit which went into production before 1st September, 1986 but which have not completed the period of eligibility for such concessions available to them in Resolution No. 1153 dated the 20th January, 1981 of Industries Department, will get such concessions for the remaining period of their eligibility according to Resolution No. 1153 dated 20th January 1981.
