Karnataka Udyog Mitra - Industrial Policy


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New Industrial Policy 2001-2006

PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA

Sub:

Refund of Sales Tax to new industrial units under the category of other than 100 percent Export Oriented Units.

Read:

G O No. CI 167 SPI 2001 (P3) dated 24.09.2002

PREAMBLE:

Government Order No. CI 167 SPI 2001 (P3), dated 24.9.2002 contemplates, special concessions of refund of Sales Tax to new industrial units (other than 100 percent Export Oriented Units) with an export of a minimum of 25% of the value of the total turnover.

It is necessary to specify the procedural aspects of the scheme.
Hence the following Government Order.

GOVERNMENT ORDER NO. FD 314 CSL 2001, dated: 26.7.2003

Sanction is hereby recorded for the refund of Sales Tax under Karnataka Sales Tax Act, 1957 paid by the new industrial units with an export performance of a minimum of 25% of the value of total turnover in a year, for a period of 5 years up to 31st March, 2006 or for a period of 5 years from the date of commencement of commercial production. Whichever is later on the purchase of raw materials component parts packing materials intermediates semi finished goods and sub-assemblies used in the manufacture of goods for sale in the course of export, Sales tax refund on purchase of various items as detailed above would be available provided the procurement is from registered dealers located within the State subject to the following conditions

1)	The unit is registered with the Director of Industries and Commerce. Government of Karnataka as an Export Oriented Unit with an export performance of minimum of 25% of the value of the total turnover.

2)	Refund of Sales tax shall be limited to Sales tax paid on the said goods which are used in the manufacture of goods in the unit in Karnataka state and the goods so manufactured are exported out of the territory of India.


3)	Refund under this Government Order shall not apply for any year to a unit which does not export a minimum of 25% of the total turnover in a year.


Explanation - I For the purpose of this Notification

1)	In so far as Export Oriented Industries which are not registered as 100% EOUs with Government of India or which have export turnover of more than 25%of the total production the Commissioner for Industrial Development & Director of Industries & Commissioner or his designated officer not below the rank of Joint Director, District Industries Center will issue such certificates after obtaining a commitment letter from the concerned industry regarding export of minimum 25% production.





2)	The actual performance of exports from other than 100% export oriented units will be verified by the concerned Joint Direcotrs, DIC on a year to year basis based on which such certification will be renewed.

3)	"Export" means export as defined under sub-section (!) and subsection (3) of section 5 of the Central Sales Tax Act, 1956.

4)	"Total Turnover is as defined in KST Act 1957"

Explanation - II - The Export Oriented Units are also eligible for exemption from payment of tax on the turnover relating to purchases of goods liable to tax at the purchase point.

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