India Government announces tax sops for Industrial Parks

The Government has notified the Industrial Park Scheme, 2008 vide Notification No.3/2008 dated 8.1.2008 for tax benefit under Section 80-IA of the Income Tax Act. The scheme shall be applicable for any undertaking which develops, develops and operates or maintains and operates an industrial park.
 “Industrial Park” under the scheme means a project in which plots of developed space or built up space or a combination, with common facilities and quality infrastructure facilities, is developed and made available to the units for the purposes of industrial activities or commercial activities in accordance with this scheme.
The Criteria for approval as Industrial Park is as under:
An undertaking shall be considered for notification under clause (iii) of sub-section (4) of section 80-IA of the Act, if it fulfills all of the following conditions, namely:-
(1)   The date of commencement of the Industrial Park should be on or after the 1st day of April 2006 and not later than 31st of March 2009;
 (2)   The area allocated or to be allocated to industrial units shall not be less than ninety per cent of the allocable area;
 (3)   There shall be a minimum of thirty industrial units located in a industrial park;
 (4)   For the purpose of computing the minimum number of industrial units; all units of a person and his associated enterprises will be treated as a single unit.
 (5)   The minimum constructed floor area shall not be less than 50,000 square meters;
 (6)   No industrial unit, along with the units of an associated enterprise, shall occupy more than twenty five per cent of the allocable area;
 (7)   The industrial park should be owned by only one undertaking; and
 (8)   Industrial units shall undertake only manufacturing activity as defined in section D of the National Classification, 2004, Code issued by the Central Statistical Organisation, Department of Statistics.
General Conditions are as under:
 (1)   The industrial park shall be construed as developed on the date of commencement.
 (2)   Tax benefits under the Act will be available to the undertaking only after minimum number of thirty units are located in the Industrial Park.
 (3)   The tax benefits under the Act will be available to the undertaking only if the undertaking and the industrial park have been notified by Central Board of Direct Taxes under section 80-IA of the Act.
 (4)   The tax benefits under the Act will be available only to the undertaking notified by the Central Government and not to any other person who may subsequently develop, develops and operates or maintains and operates the notified industrial park, for any reason.
 (5)   The undertaking must keep separate book of accounts for the industrial park and must file its income tax returns by the due date to the Income-tax department.
 (6)   An industrial park approved under Industrial Park Scheme, 2002 will continue to be governed by the provisions of that Scheme to the extent it is not in contravention with the provisions of Act, as amended from time to time.
 (7)   The undertaking shall electronically furnish an annual report to the Central Board of Direct Taxes in Form IPS-II.

(Source: Allindiantaxes)

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1 Comment

  1. Sudhakar Patel said,

    April 11, 2008 at 7:19 pm

    Very i nformative, Information about detailed benefits to units being established at Industrial Park will be very helpful.


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