make in india

FINANCIAL SUPPORT

  • USD 12.09 billion was the capital outlay for defence in 2016-17.

    There are two conditionals over which the two deductions can be availed :

    • a)  Investment allowance allows the manufacturing companies to invest more than USD 15.38 million in plants and machinery at the rate of 15%. The plants & the machinery must be installed between 1.04.2013 to 31.03.2015 where the aggregate amount of investment exceeds USD 15.38 million.
    • b)  To further boost the companies engaged in the manufacture of an article or thing, a deduction of 15% of the new plants & machinery is provided, which exceeds USD 3.84 million, bought & installed during any previous year by 31.03.2017
  • Tax incentives :

  • a)  R & D incentives that are industry / private sponsored research programmes.

  • b)  A weighted tax deduction falls under Sec 35 (2AA) of the Income Tax Act.

  • c)  National laboratory, university or institute of technology, or specified persons with a specific direction are granted a weighted deduction of 200%, where the sum is used for the scientific research within a programme approved by the prescribed authority.

  • d)  A weighted tax deduction of 200% under Sec 35 (2AB) of the Income Tax Act is provided for the companies engaged in the manufacture of an in-house R & D center. The deduction is carried out on both capital and revenue expenditure incurred on scientific research and development. The deduction is not imposed on the expenditure on land & buildings

  • Export incentives :

  • a)  Scheme on export promotion capital goods

  • b)  Duty remission scheme

  • c)  Scheme on focus products, special focus product, focus market

  • d)  Incentives as per ‘merchandise Exports from India Scheme (MEIS)' under new Foreign Trade Policy.