Print Print
New Industrial Policy 2001-2006
PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA
Sub: Entry Tax exemption to Export Oriented Industries granted vide G.O. No.CI 384 SPC 89, dated 29/11/89 resolving the outstanding dispute between the industry and commercial Tax Department - Regarding.
Read: G.O.No. CI 384 SPC 89, dated: 29/11/89

PREAMBLE:

In the Government Order dated:- 29/11/89 read at above, Government had extended the following additional incentives and concessions to 100% Export Oriented Units in the State to promote exports:
a. To offer a capital investment subsidy of 10% of the value of fixed assets subject to a ceiling of Rs. 10 lakhs to the units proposed to be set up in the EOIZ, Bangalore and also to all 100% EOU's set up in Zone-II and III provided the units achieve a value addition of at least 25% and also employ local labour to the extend of at least 30% of the requirement.
b. Exemption from payment of entry Tax on all raw materials, components, etc., procured for processing in the 100% Export Oriented Units irrespective of their location.
c.

All EOU's set up in the State to be exempted from the power cuts imposed by KEB on industrial concerns from time to time.

The Commercial Tax Department had not extended the entry tax benefit to existing 100% Export Oriented Units contending that these concessions are available to only new units. This matter has been discussed in the Cabinet held on 21/12/2001 in which Cabinet had advised chief Secretary to convene a meeting to discuss this issue. This subject was discussed in a meeting convened by Chief Secretary on 2/2/2002.

The recommendation of the meeting held on 2/2/2002 and opinion of Law Department have been considered and hence the following order:

Government Order No. CI 53 SPI 2001, Bangalore, dated: 23/4/02

After careful consideration Government are placed to accord approval to the following:
a. To extend the entry tax exemption extended vide G.O.No.CI 384 SPC 89, dated:- 29/11/1989 till 1995; and
b. Commercial Tax Department to refund the entry tax collected from ready-made garment industries during the period 1989-1995 and withdraw the demand notices in respect of units which have not yet paid the entry tax claimed by the commercial Tax Department.
BY ORDER AND IN THE NAME OF THE
GOVERNOR OF KARNATAKA,
(T. PREMANARASHIMAIAH)
Under Secretary to Govt (ID)
Commerce &industries Dept.,
To,

The complier, Karnataka Gazette, for publication in the next issue of the Gazette and to supply 1000 copies to Government.

Copy to:

  1. The Accountant General, Karnataka, Bangalore.
  2. The Commissioner for Industrial Development and Director of Industries & Commerce, Kanija Bhavan, Race Course Road, Bangalore -01.
  3. The Commissioner for Commercial Taxes, Gandhinagar, Bangalore - 9
  4. All Principal Secretaries, to Government.
  5. All Divisional Commissioners/DC of the concerned Districts.
  6. The GM,DIC's of the concerned Districy.
  7. Finance Department (Exp-I), Vidhana soudha, Bangalore.
  8. Deputy Secretary to Govt, Cabinet Section.
  9. Chamber of Commerce, KASSIA.
  10. SGF and Spare copies.
©2006 KUM. All rights reserved.