FISCAL INCENTIVES AVAILABLE IN THE STATE OF UTTAR PRADESH
|1. Interest Free Loan under Industrial Investment Promotion Scheme 2003 (Industrial Development Department)
Object - Provide liquidity (working capital) in the initial years
- New industrial units with first date of sale on and after 11-3-2003.
- Investment in land, building, Plant, Machinery and capital goods on first date of sale is not less than-
1. Rs.5 crore in agro processing units.
2. Rs. 10 crore in Eastern U.P. and Bundelkhand.
3. Rs.25.00 crore in units not covered in clause 1 and 2 above
Period of Loan
- 10 Years in case of units other than pioneer* units.
- 15 Years in case of pioneer units
* Pioneer Units -
Eligibility - Unit with earliest date of sale in a district on or after 11.3.2003. Where the date of first sale of more than one unit falls on the same date, the unit which has obtained the acknowledgement of LOI / IEM earliest from Secretariat for Industrial Approval, Ministry of Industry, Govt. of India.
Sanctioning Authority - The status of pioneer units shall be given by a Committee under the Chairmanship of District Magistrate and having GM, DIC of the District and nominated Assessing Authority of Commercial Tax Deptt.
Procedure -Eligible unit shall move an application to the GM, DIC (Convener) of the Committee with relevant details. No proforma has been prescribed.
Repayments of Loan
- 7 Years from the date of disbursement, in case of units other than pioneer units
- 10 Years from the date of disbursement in case of pioneer units.
1- UPFC where fixed investment is not more than_
(i) Rs.15 crore in case of units in Food Processing, Animal Husbandry, Electronics goods and all units situated in Eastern U.P. and Bundelkhand.
(ii) Rs. 30 crore in case of units not covered by (i) above
2- PICUP - Units not covered under (1) above
- Application for grant of loan is to be given to Managing Director, UPFC/ PICUP as the case may be, by September 30 of succeeding year alongwith three copies of annual accounts as certified by Chartered Accountant and amount of VAT and Central Sales Tax deposited as certified by Assessing Authority. No proforma of application is prescribed. If the application for the loan is given beyond the prescribed time, the period of loan shall be reduced by the period of delay.
Amount of Loan -
- Amount of loan shall not exceed the sum of amount of VAT and CST paid during the year subject to maximum of 10% of the annual turnover.
- The eligible units shall create first or second charge or furnish Bank guarantee sufficient to secure the amount of loan in favour of UPFC/ PICUP as the case may be. UPFC/ PICUP may ask for personal guarantee /bond from proprietor / partner / Directors in addition to above security on reasonable grounds.
(For Details of GOs, click here)
2. Exemption/ Concession from Stamp Duty on Transfer/ Lease / Acquisition of land (Nibandhan Vibhag):
a) 100% Exemption
i. New micro and SSI units set up in Eastern U.P. and Bundelkhand.
ii. New units for development of infrastructure like setting up of industrial estates, construction of roads, bridges, over bridges, wholesale markets, transshipment centre, integrated transport and commercial centres, container depot, electric / water supply, water discharge, exhibition centres and warehouses etc.
iii. New units in Information/ Bio technology, BPO, Call centres and Agro Processing units.
iv. All projects with an investment of Rs.750 crore or above.
v. Service Sector projects
1. Multi facility and super specialty hospitals having prescribed number of beds.
2. Technical / Information Technology training institutes with syllabus approved by the State Government and having not less than 75 trainees.
3. Medical / dental colleges /other educational institutions, multiplex cinema, shopping malls and entertainment centres with investment in building and machinery of not less than Rs.10 crore.
b) 50% Exemption - All other new units not covered by (a) above
- In case of land obtained from any Government Institution, the concerned institution shall examine the project report and execute agreement with the unit and obtain the bank guarantee equivalent to the amount of exemption from stamp duty. The Institution shall issue a certificate that the proposal of the unit is in conformity with the prescribed condition and standards. On the basis of certificate of institution the GM, DIC shall countersign the document as witness and send it to concerned Sub Registrar.
- If the land is obtained from Industrial Development Department or obtained by private negotiation, the unit shall apply for exemption from stamp duty to the concerned GM, DIC who after necessary verification, countersign as a witness and send the document for registration to Sub Registrar.
(For Details of GOs, click here)
c) Reduction of Stamp Duty on Mortgage of Title Deed, Transfer of movable property, mortgage of property without possession and collateral security to Rs.2.00 per thousand.
The stamp duty reduced to Rs.2.00 per thousand subject to maximum of Rs.10,000/- on bank guarantee.
3. Exemption from Mandi Fee (Agricultural Marketing & Export Deptt.)
Eligibility - New Food Processing Units with Investment in Plant and Machinery of Rs.10 crore or more.
Extent - On purchase of raw material for use in manufacture of agricultural produce.
Period of Exemption - 5 years
- The unit shall move an application before Secretary, Agricultural Marketing & Export for grant of exemption from Mandi fee who shall after necessary verification may issue a notification for granting exemption from Mandi fee for not more than five years on case to case basis.
4. Exemption from VAT to Manufacturer Exporter-
- On turnover of direct sale to and direct purchase by manufactures exporters of raw material, processing material, consumable stores, spare parts, accessories, components, lubricants, fuel, other than patrol and diesel, and packing material for use in manufacturer of goods by him or in packing of such goods.(Not.-247dated 24-02-10)
- Manufacturer exporter shall issue the original and duplicate copies of prescribed form 'E', duly signed by authorized signatory, to the selling dealer. The selling dealer shall furnish the original copy of form 'E' to the assessing authority at the time of filling annual return.
a- The said forms shall be got printed by manufacture exporter in triplicate (original duplicate and counter file)
b- The forms shall have printed serial numbers and bound in book form of at least 50 leaf each.
c- Manufacturer exporter shall issue the forms after affixing stamp of EE series and getting the form countersigned by the assessing authority. The stamps shall be obtained from the assessing authority.
d- One form 'E' shall contain transaction of one month for amount not exceeding Rs 10 lakh. This limit shall however, not apply to dealers having annual turnover or Rs. 25 crore or more or to state/central government undertaking corporations or companies.
e- A manufacturer exporter shall submit the proof of export like form'H', 'bill of lading' 'airway bill' etc within three months from the expiry of month in which purchase was made.
f- If the manufactured goods are not exported out of India such dealer shall be liable to pay VAT on the amount of purchase price along with interest @ of 15 %.per annum from the date of purchase in addition to any penalty for misuse of form 'E'.
g- If manufactured goods are partially exported the dealer shall be liable to VAT on purchase in proportion of export to total sale.
Entry Tax - General exemption from Entry Tax on machinery and spare parts was granted by means of notification no. 1045 Dated 29-5-09 with effect from 1-6-2009. without any condition .
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