| New Industrial
Policy 2001-2006 |
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| GOVERNMENT OF
KARNATAKA |
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| No: FD 161 CET 2001 (I) |
Karnataka Government Secretariat,
Vidhana Soudha, Bangalore,
Bangalore, Ddated: 30-11-2001
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NOTIFICATION
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Explanation
I
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Explanation
II
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Procedure
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NOTIFICATION
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In exercise of the powers conferred by section II-A of the
Karnataka Tax on Entry of a Goods Act, 1979 (Karnataka Act 27 of 1979), the
Government of Karnataka being of the opinion that it is necessary in public
interest so to do, hereby exempts the tax payable under the said Act -
| i) |
during the implementation of the project on the entry of
production machinery and equipments directly involved in the production process
into a local area caused by a new industrial unit subject to the condition that
the benefit will be available for a maximum period of three years from the date
of commencement of the project implementation whichever is earlier; and |
| ii) |
on the entry of raw materials, components, semi-finished goods,
sub-assemblies, consumables (excluding petroleum products like, Petrol, diesel,
furnace oil, naphtha, and LSHS used as consumables or for captive power
generation units) into a local area caused by a new industrial unit mentioned
in column (2) of the table below located in the zones specified in column (3)
and for the period mentioned in column (4) thereof;
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SL. No
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Type of Industry
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Location of the Industry
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Period of exemption
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1.
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Tiny/Small/Medium and Large Scale industrial Units.
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Situated in Zone B Specified in Annexure-I to Government Order
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3 years from the date of commencement commercial production
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2.
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Tiny/Small/Medium and Large Scale industrial Units
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Situated in Zone C specified in Annexure-I to Government Order
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5 years from the date of commencement commercial production
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3.
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Tiny/Small/Medium and Large Scale industrial Units
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Situated in Zone D specified in Annexure-I to Government Order
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8 years from the date of commencement commercial production
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4.
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Mega Industries
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Situated in Zone B specified in Annexure-I to Government Order
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8 years from the date of commencement commercial production
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5.
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Mega Industries
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Situated in Zone C specified in Annexure-I to Government Order
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10 years from the date of commencement commercial production
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6.
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Mega Industries
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Situated in Zone C specified in Annexure-I to Government Order
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12 years from the date of commencement commercial production
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Explanation I - For the purpose of this
Notification:
| i) |
"Government Order" means Government Order No. CI 167 SPI 2001
dated 30-6-2001 issued by the Government of Karnataka as New Industrial Policy
2001-06. |
| ii) |
A "Tiny Industrial Units" or "Small Scale Industrial Units" or
"Medium Scale Industrial Units" or "Large Scale Industrial Units" or "Mega
Industry" means as defined in para 8.5 of the New Industrial Policy 2001-06. |
| iii) |
"New Industrial Policy" means a unit in which investment has
been made on or after First April 2001. However, such of those projects cleared
during the period from 01-01-2000 to 31-03-2001, including those cleared during
the Global Investors Meet will also be eligible for the incentives under this
notification, provided they have not been sanctioned or have not availed any
other incentives under the industrial policy 1996-2001 or any other policy. |
| iv)
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The validity of tax exemption as per this Notification shall be
for a period of five years from 1st April 2001 to 31st March 2006.
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| v) |
Entry tax exemption will be available to all new investments
both for establishment of new units or for expansion, diversification and
modernization of existing industries both in the manufacturing and
non-manufacturing categories to the extent they are applicable as per
Government Order.
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| vi) |
For existing industries, which undertake expansion,
diversification and modernization, existing tax liability, based on an average
tax liability for the period of 3 years prior to commencement of expansion,
diversification, and modernization.
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Explanation II - (1) the Notification shall not apply to:
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| (a) |
a tiny or small or medium or large scale industrial units from
the date on which its registration with director of Industries and Commerce is
cancelled; |
| (b) |
the units listed in Annexure -III to the Government Order,
irrespective of their location |
| (c) |
the units whose investments in fixed assets including
investment for expansion or diversification has taken place prior to First
April 2001; subject to the relaxation contained at sub-para(iii) of Explanation
I above.
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A new industrial unit which does not provide minimum 80 per
cent employment to the local people on an overall basis (100 per cent
employment to the local people increase of Group - C and D categories)
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| (e) |
The unit which has been sanctioned the benefit of Incentives
and Concessions for investments in the Information Technology and
Bio-technology sectors Governed by the IT Policy "Mahiti" as per the Government
Order No IT 20 POL 2000, and dated 25-5-2000, the Bio technology Policy G.O.
No. ITD 2 PRM 2001 dated 13th March 2001. |
| (f) |
The Unit which has been sanctioned the benefit of Incentives
and concessions as per the Industrial Policy vide G.O.CI 30 SPC 96 dated
15-3-96 and subsequent amendments or modifications thereto and Agro Food
Processing Industry Policy 1999 vide G.O. No. CI 20 SPI 99 dated 13th April
1999 and the Auto Policy Vide G.O. No. CI 65 SPI 99 dated 18th January 2000.
However, industrial units which have already been granted a package of
Incentives and Concessions as per the above policies will continue to enjoy the
benefits already granted till the expiry of the said sanction orders.
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Procedure:
An industrial unit and or a non-manufacturing unit claiming tax exemption under
this Notification shall produce the following documents at the time of filing
first monthly statement under the Karnataka Tax on entry of Goods Rules, 1979.
i) In the case of new tiny/small/medium/large scale units/ mega industry, a
certificate in original issued by the Director of Industries and Commerce or
his authorized nominee, certifying:
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that it is a unit registered as such; |
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the value of fixed assets in terms of
land building and plant and machinery and such other productive assets like
tools, jigs and fixtures, dies, utilities like boilers, compressors, diesel
generating sets, cranes, material handling equipments and such other equipments
which are directly related to production purposes on the date of commencement
of commercial production; |
| c) |
no part of its fixed assets other then land and
building is old, used/second-hand, with the exception of those imported from
outside the country. |
| d) |
The date on which the investment in fixed assets
has taken place |
| e) |
The date of commencement of its commercial
production
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| f)
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That it is eligible for exemption from payment of
entry tax as per the government Order and |
| g) |
The category under which the unit is eligible for
tax exemption. |
ii) In case of unit undertaking expansion, diversification of
modernization, a certificate in original issued by the Director of Industries
and Commerce or his authorized nominee, certifying:
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the quantum of investment in fixed assets made for expansion,
diversification or modernization on the date of completion of such investment. |
| b) |
The date of commencement of commercial production thereof
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| c) |
The extent of additional capacity created out of investment
made for expansion, diversification or modernization. |
| d)
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That the investment in expansion, diversification of
modernization, has been made on or after First April 2001 and that it is
eligible for entry tax exemption under the government Order.
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ii) In each of the subsequent years for which tax exemption is
claimed under this Notification, the unit shall provide the following at the
time of filing first monthly statement during each of succeeding years of
assessment,
| a) |
In the case of new tiny/small/medium/large scale unit/mega
industries, a certificate from the Director of Industries and Commerce or his
authorized nominee certifying that the registration was valid throughout the
year and that the investment during the year in the first assets did not exceed
the limit specified in the Government Order, |
| b) |
In the case of unit undertaking expansion, diversification or
modernization, a certificate from the Director of Industries and Commerce or
his authorized nominee, certifying that the registration was valid throughout
the year. |
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By Order and in the name of the
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Governor of Karnataka,
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Sd/-(S. Divakar)
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Under secretary to Government,
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Finance Department (C.T.I)
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| No. JD/ID/E1-tax-exm/2001-02 |
Office of the Director,
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No. 49, II Block,
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Khanija Bhavan, |
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Race Course Road, |
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Bangalore - 560 001 |
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Dated: -12-2001. |
Copy to:-
1. The Additional Director (Admn.)/Vishwa)/(DIC(CC))/(SSI)
(ICS) Head Office, Bangalore.
2. The Joint Director (Planning) /(AEP) head Office, Bangalore.
3. All the Joint Director, District Industries Centers,
4. Office copy and extra copy.
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Joint Director (Indl.Dev.)
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