OPERATIONAL GUIDELINES ON REIMBURSEMENT OF ENTRY TAX UNDER TPR-2016 (Para – 8.1.9 of TPR-2016)
1. Short Title: - Operational guidelines for reimbursement of Entry Tax under Tourism Policy Resolution –2016.
2. Extent: - It shall extend to the whole of the State of Odisha.
3. Commencement: -It shall come into force from the “Effective Date" of Tourism Policy Resolution –2016 i.e. 24th November, 2016.
4. Terms and Expressions: -Terms and expressions used in this operational guideline but not specifically defined / explained here shall have the same meaning as in Tourism Policy Resolution –2016.
4.1 Cost of Plant & Machinery:-
(a) In calculating the cost of plant & machinery, the original price thereof, irrespective of whether the plant & machinery / additional plant & machinery are new or second hand shall be taken into account excluding, namely:- i) the cost of installation of plant & machinery ii) the cost of Research & Development equipment and pollution control equipment iii) the cost of generation sets, extra transformer, installed iv) the bank charges and service charges paid v) the cost involved in procurement or installation of cables, wiring, bus bars, electrical control panels ( not those mounted on individual machines), oil, circuit breakers / miniature circuit breakers etc which are necessarily to be used for providing electric power to the plant and machinery / safety measures, vi) the cost of gas producer plants viii) transportation charges (excluding of taxes e.g. Sales Tax, Excise etc) for indigenous machinery from the place of manufacturing to the site of factory ix) charges paid for technical know-how for erection of plant & machinery, x) cost of such storage tanks which store raw – materials, finished products only and are not linked with the manufacturing process, and xi) cost of fire fighting equipment xii) cost of cylinders for supply of gas
(b) In case of imported machinery, the following shall be included in calculating the value, namely:-
(i) import duty (excluding miscellaneous expenses as transportation from the port to the site of factory, demurrage paid at the port),
(ii) the shipping charges,
(iii) custom clearance charges, and
(iv) VAT& CST paid thereon.
5. Policy Provisions:- Reimbursement of Entry Tax till implementation of GST:-
(i) Plant & Machinery a) New tourism units shall be eligible for 100% reimbursement of Entry Tax on acquisition of plant & machinery for setting up of Tourism units till the date of commercial operation.
b) Existing Tourism units taking up expansion as defined in this TPR shall be eligible for 100% reimbursement of Entry Tax subject to condition that it shall be applicable only on additional acquisition of plant & machinery till the date of commercial operation.
6. Eligibility:- New Tourism units satisfying definition as per Tourism Policy Clause No.7.11 shall be eligible for this incentive
7. Time frame for filing application: -
7.1 The eligible Tourism unit shall file Application in prescribed form for reimbursement of Entry tax paid on acquisition of plant & machinery for setting up of Tourism units / additional acquisition of plant & machinery for expansion within 1 year from the date of commercial operation. Such reimbursement of entry tax shall only be permissible for acquisition of plant & machinery made up to date of commercial operation.
7.2 An application for reimbursement of Entry Tax on purchase of raw materials shall be submitted within six months from the end of each financial year.
The tourism unit will be allowed reimbursement of Entry Tax on purchase of raw material subject to condition that they have not set off the Entry Tax paid on purchases of raw materials against Entry Tax collected on sale of scheduled goods.
7.3 Application in the prescribed form received after the due date / incomplete in any respect shall be liable to be summarily rejected.
8. Procedure:-
8.1 Reimbursement of Entry Tax on acquisition of Plant &Machinery:-
8.1.1 Tourism units satisfying the eligibility shall file separate application for reimbursement of Entry Tax in respect of Plant & Machinery (Part-I & Part-II of Annexure-A)in the prescribed form appended to this operational guideline at Annexure -'A' along with copies of all relevant documents as mentioned in the Checklist at Annexure - 'B'and Undertaking prescribed at Annexure A-1as per the following category Copies of the documents as indicated in the checklist shall be self - attested by Proprietor / Managing Partner / Managing Director / Authorized Signatory.
8.1.2 On receipt of application, the acknowledgement as prescribed at Annexure- 'C' shall be dispatched to the applicant / applicant unit duly signed by the authorized officer of Department of Tourism on the day of receipt. Director Tourism may authorize any of his officers for the purpose.
8.1.3 Application received for reimbursement of Entry Tax on acquisition of Plant & Machinery and complete in all respect shall be examined by DoT and processed as below.
a. Director Tourism shall transmit one set of application within 3 days of its receipt to concerned officer to certify the amount of Entry tax paid on acquisition of plant & machinery for setting up of Tourism units.
b. Concerned officers shall furnish necessary certificate in Annexure A-2.1 (Plant & Machinery) to Director Tourism within 15 days of receipt of proposal at his end.
8.2.2 On receipt of application, the acknowledgement as prescribed at Annexure- 'C' shall be dispatched to the applicant / applicant unit duly signed by the authorized officer of DoT on the day of receipt. Director Tourism may authorize any of his officers for the purpose.
8.2.3 Application received for reimbursement of Entry Tax and complete in all respect shall be examined by authorised officers of DoT and processed as below.
a) Authorised officers shall transmit one set of application within 3 days of its receipt to certify the amount of Entry Tax paid in the format prescribed in the body of application form– Annexure A-2.2 under intimation to the concerned unit.
b) At the same time (within 3 days as mentioned above), authorised officers shall forward one set of application to the Director Tourism, Odisha for processing under intimation to the concerned unit.
c) Parallel (within 15 days as mentioned above), if not done earlier while considering the reimbursement of Entry Tax on Plant & Machinery acquired for setting up of Tourism units till the date of commercial operation and furnish report in the Format prescribed at Annexure-D.
This assessment for the cost of Plant & Machinery / additional Plant & Machinery shall be carried on once during period of incentives while processing the application for the reimbursement of Entry Tax for the first time.
9. Sanction:- Sanction for reimbursement of eligible amount of Entry Tax paid may be accorded in favour of eligible Units in the format prescribed at Annexure –“E” against purchase of Plant & Machinery
10. Disbursement: - Disbursement of sanctioned amount for reimbursement of Entry Tax paid or part thereof shall be made by Director Tourism within 5 days of sanction subject to availability of funds under the scheme.
Further, the disbursement may be deferred if the unit is found closed and may be effected on resumption of production.
11. Rejection:- In case of rejection of application, the reasons of rejection shall be communicated to the applicant unit within 25 days of receipt of application from the claimant unit by the respective agencies in the format prescribed at Annexure – 'F'
12. Recovery:- The amount disbursed towards reimbursement of Entry Tax and or any part thereof shall be recoverable with penal interest as decided by the authority on following events as per terms and conditions undertaken by the unit in the body of application form.
a) If the information furnished is found to be false/ incorrect / misleading or mis-represented and there has been suppression of facts / materials or disbursed in excess of the amount actually admissible for whatsoever reason.
b) If the Tourism unit goes out of operation for a period exceeding six months at a time for any reasons other than labour troubles, want of electric power or for the reason which is beyond the control of entrepreneur / management during the period of incentives.
c) If any part of Plant & machinery is disposed of and not reported which affects the maximum limit of VAT reimbursement during the period of incentives.
13. Miscellaneous:-
11.1 Tourism Unit shall furnish its audited financial statements and other periodical statements of each financial year to the Director Tourism, Odisha during the period of incentives.
11.2 Any change in facts or circumstances affecting the eligibility of the unit shall be intimated immediately to the Director Tourism, Odisha by the unit.
11.3 Time limit prescribed in this guidelines are of working days only.
11.4 This has been concurred in by Finance Department and communicated vide their letter No.--------------------/dt---------------------.
XXXXXXXXXXXXXXXXXXXXXXXXXX Annexure-A APPLICATION FOR REIMBURSEMENT OF ENTRY TAX UNDER TOURISM POLICY RESOLUTION –2016.
Application received after the due date / incomplete in any respect shall be liable for rejection (Strike out whichever is not applicable) M/s.__________________________ At/PO ________________________ Dist. _________________________ (Location of the Tourism Unit) To The Director Tourism, Govt.of Odisha Bhubaneswar Sub: Application for reimbursement of Entry Tax paid on Plant & Machinery acquired for setting up of Tourism unit.
Sir, In accordance with the provisions laid down in Tourism Policy Resolution – 2016 and its operational guidelines, the claim is submitted for reimbursement of Entry Tax paid on Plant & Machinery acquired for setting up of Tourism unit with following particulars
PART-I 1 Name of the Tourism Unit :
2 Address of Registered office 3 Type of organization (Proprietorship / Partnership / Co-operative / Private / Limited / Public Limited) :
4 Name of Proprietor/Managing Partner/ Managing Director / Authorized Signatory :
5 EM-II / IEM / I L NO. and Date / TPR* :
6 Name of the Financial Institution / Banks extended Term loan / Working capital loan (Specify the amount & date of sanction) :
7 Type of Activity :
8 Date of commencement of commercial operation as per Clause 6.5 of Tourism Policy, 2016.
: Schedule :
Actual :
9 Items of manufacture / activity :
10 Date of fixed capital investment i.e. Land/ Building/plant & machinery and balancing equipment :
11 Name of the Financial Institution / Bank :
12 Employment generated :
13 Registration Number & Date (issued by Commercial Tax Authority) TIN (Tax Payers Identification Number) :
14 Import License No. (if any) :
15 Details of deferential benefit claimed (if any) :
PART-II (Application for reimbursement of Entry Tax purchased of Plant & Machinery) (Strike out whichever is not applicable) Plant & Machinery acquired for setting up of Tourism unit /Additional Plant & Machinery acquired for expansion Sl Total investment in Estimated Till Date of provisions Commencement of (Rs) Operation (Rs) 1 Plant & Machinery 2 Additional Plant & Machinery acquired for expansion
2. Justification for excess investment, if any.-- (Excess investment without proper justification shall not be considered for calculation for the purpose of sanction of Entry Tax reimbursement)
3. Details of Entry Tax paid on(Strike out whichever is not applicable)Plant & Machinery acquired for setting up of Tourism unit till commencement of production /Additional Plant & Machinery acquired for expansion till commencement of operation of such expansion Sl Details of Plant & Name & Bill No Total cost Entry Tax Machinary address of & Date including VAT & paid with specifications Supplier CST paid (Rs) (Rs) Total
4. Amount of Entry Tax claimed on acquisition of Plant & Machinery:
Amount of Entry Tax claimed for reimbursement ( on Rs.
acquisition of Plant & Machinery acquired for setting up of Tourism unit /Additional Plant & Machinery acquired for expansion I ,Sri__________________________ s/o ____________________at present ________________ (designation) of M/S ______________________ (name of the Tourism unit) certify that the information furnished as above is true and correct to the best of my knowledge and belief.
I hereby undertake to abide by the terms and conditions prescribed under the provisions of TPR-2016 and its operational guidelines.
I hereby certify that I / We / the concerned promoter(s) have not defaulted toBanks / Development Financial Institutions / SIDBI / OSFC / IPICOL / Government and Government controlled agencies.
I hereby undertake to repay / surrender the incentives or any part thereof availed with penal interest as decided by the authority-
(i) If the information stated above is found to be false/ incorrect / misleading or mis-represented and there has been suppression of facts / materials or if found to have been disbursed in excess of the amount actually admissible for whatsoever reason.
(ii) If the Tourism unit goes out of operation for a period exceeding six months at a time for any reasons other than labour troubles, want of electric power or for the reason which is beyond the control of entrepreneur / management during the period of incentives.
(iii) If any part of Plant & machinery is disposed of and not reported which affects the maximum limit of Entry Tax reimbursement during the period of incentives.
I hereby certify that this Tourism unit has not applied / availed the incentives claimed here under any other scheme of the State Govt. or the Central Govt. or any Financial Institution(s).
Copies of relevant documents in support of information / facts furnished above are enclosed herewith.
Signature of the Proprietor / Managing Partner / Managing Director / Authorized Signatory of M/s ------------------------------ Place- Date-
PART-III (Application for reimbursement of Entry Tax purchased for Raw materials) (Strike out whichever is not applicable) Period __________ to ________________ Item of Production Name & Address of the Supplier Total cost including VAT for purchase of raw material Entry Tax paid Details of Entry Tax paid on purchase of raw materials / additional raw materials for expansion during -------------- (Mention Period of claim - From the date of commencement of production to the end of financial year / 2 nd Financial Year / 3 rd Financial Year / 4 th Financial Year / 5 th Financial Year / 1 st April of 6 th Financial Year to the date of completion of five years of commencement of operation.
Sl Details of Raw Name & Bill No Quantity Total cost Entry materials address of & including VAT Tax paid Supplier Date & CST paid (Rs) (Rs) 1 2 3 4 5 6 7 Total Total entry tax due on sale of goods in Odisha Amount of entry tax on purchase of raw materials set off against the entry tax due on sale of goods Net entry tax paid on sale of goods after set off of entry tax on purchase of raw materials 8 9 10 Total
3. Amount of Entry Tax claimed for 1 Amount of Entry Tax claimed for reimbursement (on purchase of raw materials) Rs.
2 Whether the unit is in continuous commercial operation during the normal period of incentives I ,Sri__________________________ s/o ____________________at present ________________ (designation) of M/S ______________________ (name of the Tourism unit) certify that the information furnished as above is true and correct to the best of my knowledge and belief.
I hereby undertake to abide by the terms and conditions prescribed under the provisions of TPR-2016 and its operational guidelines.
I hereby certify that I / We / the concerned promoter(s) have not defaulted toBanks / Development Financial Institutions / SIDBI / OSFC / IPICOL / Government and Government controlled agencies.
I hereby undertake to repay / surrender the incentives or any part thereof availed with penal interest as decided by the authority-
(iv) If the information stated above is found to be false/ incorrect / misleading or mis-represented and there has been suppression of facts / materials or if found to have been disbursed in excess of the amount actually admissible for whatsoever reason.
(v) If the Tourism unit goes out of production for a period exceeding six months at a time for any reasons other than labour troubles, want of electric power or for the reason which is beyond the control of entrepreneur / management during the period of incentives.
I hereby certify that this Tourism unit has not applied / availed the incentives claimed here under any other scheme of the State Govt. or the Central Govt. or any Financial Institution(s).
I hereby undertake to furnish its audited financial statements and other periodical statements of each financial year to the RIC / DIC / IPICOL / Directorate of Industries, Odisha during the period of incentives Copies of relevant documents in support of information / facts furnished above are enclosed herewith.
Signature of the Proprietor / Managing Partner / Managing Director / Authorized Signatory of M/s ------------------------------ Place- Date- Annexure A-1 UNDERTAKING (Strike out whichever is not applicable) From M/s.__________________________ At/PO _________________________ Dist. ___________________________ I, / We hereby under take that claim for reimbursement of Entry Tax forRs ------ -----( In words)-------------- against Entry Tax paid on Plant & Machinery acquired for setting up of Tourism unit / additional Plant & Machinery acquired for expansion.
I, / We hereby undertake that the Tourism unit shall commence production within 3 years of clearance of the SSWCA I, / We hereby under take that claim for reimbursement of Entry Tax for Rs ----- -------(in words)-------------- against Entry Tax paid on purchase of raw Materials which directly go into the composition of finished products manufactured by the Tourism units during (mention period)......................................... (From the date of commencement of production to the end of Financial year / 2 nd Financial Year / 3 rd Financial Year / 4 th Financial Year / 5 th Financial Year / 1 st April of 6 th Financial Year to the date of completion of five years of commencement of Production / I, / We hereby under take that claim for reimbursement of Entry Tax for Rs ----- -------(in words)-------------- against Entry Tax paid on purchase of additional raw materials which directly go into the composition of finished products manufactured by the Tourism units in expansion during (mention period) ............................... (From the date of commencement of operation to the end of Financial year / 2 nd Financial Year / 3 rd Financial Year / 4 th Financial Year / 5 th Financial Year / 1 st April of 6 th Financial Year to the date of completion of five years of commencement of Production / Further, I hereby certify that / we / the concerned promoter(s) have not defaulted to Banks / Development Financial Institutions / SIDBI / OSFC / IPICOL / Government and Government controlled agencies.
Signature of the Proprietor / Managing Partner / Managing Director / Authorized Signatory of M/s ------------------------------ Date- Annexure A-2.1 (Plant& Machinery) OFFICE OF THE DEPUTY / ASST. COMMISSIONER OF COMMERCIAL TAXES --- Letter no-------------------- Date-------------------------- (Strike out whichever is not applicable) Certified that M / S __________________________ bearing TIN (Tax Payer’s Identification number)____________________has paid Entry Tax for Rs ___________ (in words) Rupees ______________________ for tax period from ……………… to ………………….. towards purchase/ receipt of Plant & Machinery for setting up of Tourism unit / additional purchase/ receipt of Plant & Machinery for expansion.
Signature of D. C. C.T / A.C.C.T in charge of the Circle with seal & date.
Annexure A-2.2 (Raw materials) OFFICE OF THE DEPUTY / ASST. COMMISSIONER OF COMMERCIAL TAXES --- Letter no-------------------- Date-------------------------- (Strike out whichever is not applicable) Certified that M / S __________________________ bearing TIN (Tax Payer’s Identification number)____________________has paid Entry Tax for Rs ___________ (in words) Rupees _________________ for tax period from …………….. to ………..……… towards purchase/ receipt of raw materials for production of finished products/ additional purchase/ receipt of raw materials for production due to expansion and the same Entry Tax on purchase of raw materials have not been set off against the Entry Tax on sale of finished scheduled goods.
Signature of D. C. C.T / A.C.C.T in charge of the Circle with seal & date.
Annexure B CHECK LIST Copies of documents to be attached with the application shall be self-attested by Proprietor / Managing Partner/Managing Director / Authorized Signatory (Strike out whichever is not applicable) 1 Entrepreneurs Memorandum- I / Entrepreneurs Memorandum- II / IEM / Tourism License 2 Power of Attorney / Board Resolution / Society Resolution, as applicable, for signing as Partner / Managing Director / Authorized person in the application.
3 Certificate of Registration under Indian Partnership Act1932 / Societies Registration Act- 1860 / Certificate of incorporation (Memorandum of Association & Article of Association ) under Company Act-1956 4 Certificate of Priority Sector / Pioneer Unit in each Priority Sector / 5 Document in support of date of first investment in fixed capital i.e. land / building / plant & machinery and balancing equipment in respect of Original / Expansion / Modernization / Diversification 6 Appraisal& approval documents in support of E/M/D as defined in TPR 7 8 Certificate on Date of commercial operation for Original & E/M/D in case of Large Industry For Hotel projects star categorization certificate of appropriate authority 9 TIN (Tax Payer’s Identification number) Certificate / Registration under Entry Tax Act , 1999 10 Import license no. Import Code etc. in case of Import 11 Term loan sanction order of OSFC / Banks / FI ( Original / E/ M/ D) 12 Documents / Challans in support of net VAT Paid against the claim 13 Undertaking in the format prescribed at Annexure A-1 14 For apportion of Entry Tax paid for E / M / D prescribed at Annexure –AA.
15 Valid statutory clearances including consent to operate issued by OSPCB 16 Document in support of delay in implementation condoned by Empowered Committee Annexure -C (FOR OFFICE USE) OFFICE OF THE DIRECTOR TOURISM, GOVT.OF ODISHA Letter No.---------------- / Date------------------ Acknowledgement To Sri ____________________________ M/s. ___________________________ ___________________________ Received the application for ---------------------------------------------------------- under the provisions of TOURISM POLICY RESOLUTION–2016 and its operational guidelines along with documents mentioned below from M/s------------------ At/PO------ ----------Dist. ___on dt. ----- through post / person.
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Signature of authorized officer / Department of Tourism with seal & date-------------------- Annexure –C (TO BE DISPATCHED TO THE APPLICANT) OFFICE OF THE DIRECTOR TOURISM, GOVT.OF ODISHA Letter No.---------------- / Date------------------ Acknowledgement (Strike out whichever is not applicable) To Sri ___________________________ M/s. ___________________________ ___________________________ Received the application for --------------------------------------------------------------------------- ------------------------------------------------------------------------------------------ under the provisions of TOURISMPOLICY RESOLUTION–2016 and its operational guidelines along with documents mentioned below from M/s----------------------------- At/PO-------------------Dist. ______on dt. -------through post / person.
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Signature of authorized officer / Department of Tourism with seal & date-------------------- Annexure-D VALUATION OF COST OF PLANT & MACHINERY (Strike out whichever is not applicable)
1. We have verified the Plant &Machinery acquired by M/s ---------------------------------- -------- located at ------------------------- bearing EM-II / IEM / I.L No------- Dt.---------- and the valuation of Plant & machinery unit vis-à-vis estimated provisions till commencement of commercial operation is given here under.
Sl Items of Plant & Machinery Original As per Actual estimate expenditure incurred 1 2 3 4 5 6 Total
2. Justification for excess investment, if any.-- (Excess investment without proper justification shall not be considered for calculation for the purpose of sanction of VAT reimbursement) Signature & designation of authorized officer of Department of Tourism Date Annexure- E-1 OFFICE OF DIRECTOR TOURISM, GOVT.OF ODISHA (Strike out whichever is not applicable) Sanction Order Order No. ___________/ Date:____________
1. Sanction is hereby accorded for hundred percent reimbursement of Entry Tax paid / deferential benefit / for Rs._______ in words (Rupees ______________) only On acquisition of plant & machinery for setting up of Tourism units till the date of commencement of production / on additional acquisition of plant & machinery till the date of commencement of production of such expansion in favour of M/s. _________ At:_________ PO:________ Dist.:_____ under provisions of Para 8.1.9 of TPR,2016.
2. The amount sanctioned here is within / equal to the total maximum ceiling of 100% cost of plant & Machinery /100% of cost of additional of Plant & machinery for expansion.
Director Tourism, Odisha Memo No. _____________ Dt.____________/ Copy forwarded to Sri __________Proprietor / Mg Partner / Mg Director / Authorized Signatory of M/s-------- -------------- At:_______ PO____ Dist.:______ for information.
Director Tourism, Odisha Memo No. _____________ Dt.____________ / Copy forwarded to Commissioner, Commercial Taxes, Odisha, Cuttack / Deputy / Assistant Commissioner of Commercial Taxes ___________ for information & necessary action.
Director Tourism, Odisha Annexure- E-2 OFFICE OF THE DIRECTOR TOURISM, GOVT.OF ODISHA (Strike out whichever is not applicable) Order No. ___________/ Date:____________
1. Sanction is hereby accorded for hundred percent reimbursement of Entry Tax paid for / deferential benefit / Rs._______ In words (Rupees ______________) only on purchase of raw materials for manufacturing / additional raw materials for manufacturing in expansion for the period from _____ to _____ i.e. (mention period) ................... (From the date of commencement of production to the end of Financial year / 2 nd Financial Year / 3 rd Financial Year / 4 th Financial Year / 5 th Financial Year / 1 st April of 6 th Financial Year to the date of completion of five years of commencement of Production in favour of M/s.
_________ At:_________ PO:________ Dist.:_____ under provisions of Para -
8.1.9 of TPR,2016.
Director Tourism, Odisha Memo No. _____________ Dt.____________/ Copy forwarded to Sri __________Proprietor / Mg Partner / Mg Director / Authorized Signatory of M/s-------- -------------- At:_______ PO____ Dist.:______ for information.
Director Tourism, Odisha Memo No. _____________ Dt.____________ / Copy forwarded to Commissioner, Commercial Taxes, Odisha, Cuttack / Deputy / Assistant Commissioner of Commercial Taxes ___________ for information & necessary action.
Director Tourism, Odisha Annexure F OFFICE OF THE DIRECTOR TOURISM, GOVT.OF ODISHA Letter No.---------------- / Date------------------ (Strike out whichever is not applicable) To Sri ____________________________ M/s. ___________________________ At ___________________________ PO ___________________________ Sub-Division____________________ Dist. __________________________ (Location of the Tourism Unit) Sir, This is to inform that your application for sanction ------------------------------------- -----------------------filed on dt.___________ under TPR-2016 is rejected due to following reasons.
(Specify the reasons)
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Director Tourism, Odisha with seal & date------------------------.