The Government of Rajasthan on April 26, 2023, issued clarifications on clauses 5.18, 7.6, and 11.3 of the Rajasthan Investment Promotion Scheme, 2019.
The following clarifications have been issued:
• Benefits of clause 5.18 of the scheme are available to Textile Sector and Apparel Sector both.
• There is a provision in clause 7.6 of the scheme that Enterprises making an investment equal to or above rupees five crores, shall be granted a 5% Interest subsidy on term loans taken by enterprises from Financial Institutions or State Financial Institutions or Banks recognized by Reserve Bank of India, for making an investment for the development of IT infrastructure, subject to a maximum of rupees twenty-five lakh per year. It is clarified that this interest subsidy will be available for five years as in the case of the IT park under clauses 7.5.1 and 7.5.2.
• There is a provision in clause 11.3 of the scheme that in case of expansion, the amount of Investment subsidy shall be calculated on the amount of additional State tax due and deposited after Expansion or revival, as the case may be, over and above the maximum annual State tax due and deposited by the enterprise for any of the three years immediately preceding the year of the commencement of commercial production/operation. Where the tax rate differs in the three years immediately preceding the year of the commencement of commercial production, the maximum annual tax payable shall be rationalized by considering the highest tax rate in these three years. In case of a change in the rate of tax on any goods, the maximum annual tax, in the three years immediately preceding the year of the commencement of commercial production shall be calculated at the new tax rate(s).
In expansion, employment generation subsidy shall be allowed only for the employees appointed under expansion over and above the existing employees. The exemption of electricity duty and Market Fee (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 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 on which such tax/ duty/ fee was payable and has been deposited (unless exempted under RIPS-2003 or RIPS-2010 or RIPS-2014 or under this Scheme) into the Government exchequer. This exemption in any year shall be allowed only after the attainment of the maximum annual turnover or maximum annual consumption of electricity, as the case may be, of the three years immediately preceding the year of the commencement of commercial production/operation, in that year.
It is clarified that in cases where the enterprise has carried out expansion and started commercial operation of the expansion project before three years, the benefit under the Scheme shall be calculated over and above the maximum of State tax due and deposited or over and above the maximum of turnover or over and above the maximum of electricity consumption as the case may be in any month preceding the date of commencement of commercial production/operation of an expansion project, rationalized into annual figures.
• There is a requirement to submit EPF and ESI challans for availing benefits under clause 15.3.1(iv) of the scheme. It is clarified that it shall be applicable only in case of applying for Employment Generation Subsidy and EPF and/or ESI challans may be submitted for the purpose of this clause, as applicable.
• There is a requirement to submit EPF and ESI challans under clause 16.2.1 of the scheme. It is clarified that EPF and/or ESI challans may be submitted for the purpose of this clause, as applicable.
[Notification No. F.12(39)FD/Tax/2019-Pt-II-8]
