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PART Il GOVERNMENT OF PUNJAB OEP ARTMENT OF EXCISE AND TAXATION (EXCISE AND TAXATION-IT BRANCH) NOTIFICATION The 6th April, 2015 GSR 19/P.4.8/2005/Ss.8-E and 70/2015.-In exercise of the : -onferted by secs 70 read with section 8-E of the Punjab Value og ax Ach 9005 (Punjab Act No. 8 of 2005), and all other powers enabling doe 5 pehalf, the Governor of Punjab is pleased to make the following we, if) :
pi arty out the purpose of the said Act, namely:- ies, © q RULES NO- short title and Commencement.- (1)These rules may be called the je » Value Added Tax (Incentives for expansion projects) Rules, 2015.
ey shall come into force on and with effect from the date of their ntication ‘nthe Official Gazette.
uv Definitions. In these rules, unless the context otherwise requires,-
(a) ‘Acts’ means the Punjab Value Added Tax Act, 2005 and the Central Sales Tax Act, 1956;
(b) ‘Agro Industrial and Food Processing Industries’ means units which add value to agricultural produce, their intermediates and residues, and edible animal products by processing or by improving storability or by providing the link from farm to the market or part thereof Agro Industry also includes hi-tech agriculture, fish processing, honey processing, cold chain infrastructure, steel silos and warehouses for food grains;
(c) ‘agriculture produce means produce of agriculture, horticult ure, agro forestry, floriculture and bio-mass/agro produce;
(d) ‘competent authority means the Chief Executive Officer of the Punjab Bureau of Investment Promotion;
gible for incentives as specified in
(e) ‘eligible area’ means an area eli 2013;
the Fiscal Incentives for Industrial Promotion, Scanned with CamScanner pUNJAB GOVT, GAZ, (EXTRA), 4] (CHTR 17, 1937 §aye, ate er) ip TL Stee UL. /, AL) 4 “or ee a ' ‘. ‘ i 7 a pligibility ' cruilicale means a ¢ erty a J) | en \ uthorlys y the COMpetent jpjigible period means the MaXimuny pe v) ‘ :
(! nit ca exhaust the incentive lint vr | ; lod during Which ane ligible ‘inited and jt ) le . ‘Lan _ . , . . f 5 ;
with effect from the date of Approval of th hall commence © unit:
4 i) ty i} ’ it’ in “hk ‘ 4 I “ans | ui (hi) Lie area eatianoina eligible area satisfying the lollowing condit} Ons:
(1) ‘There shall be a minimum 50 % Increase in th - ! Wied ins Investment (Original value without denreri.0: le Fixed Capital Cpreciation) fi with original investment of Rg Wall projects 100 ere Te ;
° ' FEF | eC condition that the minimum increase in the Fj Ject to the € Fixed Investment would be Rs | Cy Capital
(2) For projects with original investment above Rs 100 i oe § 100 crore, the minimum increase in Fixed Capital Investment shall be 25% subject to a minimum limit of Rs 50 crore: and |
(3) Such expansion shall have to be carried out after the cut off date of 01.04.2013 meaning thereby that the unit shall make the requisite investments only after 01.04.2013 as expansion of the existing project;
() ‘Existing unit' means any other unit which is not availing incentive under the Industrial Policy of 2013;
'Fixed Capital Investment (FC])' shall include the investment of building (excluding land), plant and machinery and equipment in relation to an industrial unit, including miscellaneous assets, technical know-how and other cost components associated with the industrial activity as appraised and firmed up by Banks or Financial Institutions;
(k) 'Form' means a Form appended to these rules;
() ‘Government’ means the Government in the Department of Excise and Taxation;
m cumulative quantum of tax
(m) ‘Incentive limit’ means the maximu oe d by an eligible unit during f " incentive granted, which can be availe an eligible period;
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(1) LT By (elecommunication:
Information Technolo ud
(0) | aac Industry Meany infoy 0) ‘Integrated Steel Plant’ shay mea “N Steel plant in Which final end | US Sponge | | slabs ete. and is manufactured Startiy ae Startin all the processes Concerning such in product is to be sold in retail Sale such (y, baloomy, 8 Irom iron ore oy serap and ae anulae typ iad lead the plant itself; Cluring are perlormed jy ‘Integrated Texti (q) Integ Textile Unit' means one th | Al CONSIs( process including spinning Ists 5 Of composite Weay| itt ving or knitting, processing manufacturing of end products like a fabrics, garments,
(r) Interdepartmental Committee’ mean such, by the Government, which sh resentative from the Department of Finance Presentatives
(s) ‘Manufacturing’ means a process b transformed into a different and distinct value addition of 25% in the y lowels, etc,:
S Committee constituted, all comprise re Ais and Y which the material ig product with the minimum , alue of the raw material, but does not include the process of treating, repairing, resha ping, reconditioning, assembling, electroplating, polishing, : blending, Cutting, dyeing, heat treatment, wire drawing and conversion of penultimate product into final product for the purpose of availing incentives:
(t) ‘Negative List’ means the list of units and goods specified in Annexure-A
(u) Prescribed authority’ means an Assistant Excise and Taxation | Commissioner, incharge of the district;
(v) ‘tax’ means tax under the Acts, excluding surcharge under the Punjab Value Added Act, 2005;
(w) ‘tax incentive’ means the amount of tax collected and retained by the eligible unit but the retention of tax shall be restricted to that part of net tax liability accrued under the Acts (after adjusting it against input tax credit if any available), in case of the unit availing Scanned with CamScanner ,p Govt. GAZ. (EXTRA), APRIL 7, 2015 pUN: (CHTR 17, 1937 SAKA) rive scheme, which 1s adjustable against the incentive limit *{1 ‘ "ty “f maf ) } 4 r é ag?
fie (under the Industrial Policy of 2013, The net tax liability on (c | at of surcharge accrued under the Punjab Value Added Act, ghall not form the part of tax incentives:
(02: ; ha ofarea means an eligible area notified as such by the Industrial "7,0"
(x) icy ol 2013; and pol oe ({ area’ means an eligible area notified as such by the | Policy of 2013.
Zone W) industria a (ons for eligibility and entitlement.- These incentives shall } “ibe Oe ee eo wing conditions."
ihe (oll? hese ‘ncentives shall not be available to the goods specified in the | oe given at Annexure ‘A’.
a ‘Eligible unit’ in relation to an expansion project subject to atlVe ver These incentives shall be admissible to an expansion project, which — eligible area and in respect of which an Eligibility Certificate has alls d by the competent authority.
3) The maximum time period and maximum cumulative amount of ye available for different kinds of industries and with different amounts of - shall be as per the restrictions and tables referred to in the Rule 4.
in (4) Wany false declaration is given for the purpose of availing incentives vif any -acentives are availed for which the unit was not eligible, the amount of ‘centives are liable to be recovered from the date of availment of such incentives along with interest compounded annually @ 18% per annum.
(5) Government of India is in the process of introducing a uniform Goods and Services Tax (GST) regime throughout the country. In this event the benefits related to CST/VAT incentives granted or being availed would be suitably modified by the State Government in conformity with the Goods and Services Tax regime.
4, Quantum of Entitlement.- (1) The tax incentives from the liability to pay tax under the Acts with regard to group of industries situated in different zones shall be available subject to the maximum benefit as per table given below.
Scanned with CamScanner PUNJAB GOVT, GAZ. (EXTRA), APRIL 7, 2015 10) (CHTR 17, 1937 SAKA) TABLE 7, sor New large manufacturing Sector units, 4 “ eo Fixed Cap Wy xed Capital FixedCapital Fixed Capital gp Investment f } fi | rom Investment from Investment above 3 yf RS.25Crto Rs. 100 Cr. to ~—-Rs. SOO Cr.
Rs. 100 Cr. Rs, 500 Cr.
A Quast 30% VAT + 35% VAT + 40% VAT + py incentive 31.5% CST = 375% CST 37.5% CST available —— Maximum 30% of 35% of 40% of cumulative Fixed Fixed Fixed quantum of Capital Capital Capital = Investment. Investment. Investment.
Bose yy Quantum of 13% VAT + 17.5% VAT + 20% VAT + incentive 25% CST 25% CST 25% CST available Maximum 15% of 17.5% of 20% of cumulative Fixed Fixed Fixed quantum of Capital Capital Capital incentive Investment. Investment. Investment.
- igiility from date of 10 1 13 application in years.
—
(i) Incentives for manufacturing sector units with Fixed Capital Investment from Rs, 10 Cr. to 25 Cr.
Fixed Capital Maximum Eligibility from date of Area Investment from cumulative quantum —_ application in years.
| Rs. 10 Cr. to Rs. 25 Cr. of incentive 25% VAT + 37.5% CST 25% of Fixed Capital 8 Investment
12.5% VAT + 25% CST 12.5% of Fixed 8 Capital Investment Scanned with CamScanner “ia ae pUNIAB GOVT. GAZ. (EXTRA), APRIL 7, 2015 (CHTR 17, 1937 TSAKA) 07 facturing sector units SaaS Bsa With Fixed Capital Investment from oe » Cr to 10 Cr.
xed Capital M ta | Fi p aximum Eligibility from Investment from cumulative date of if? ; 1.0 Cr. to (le Rs. a uaa of application I Rs. Incentive in years.
= VAL + 25% of Fixed 7 “sn om 37.5% CST Capital ie sl Investment ; (5 ind” on , and i | patkS id Incentives for Integrated Textile Units.
— Fixed Capital Fixed Capital gigi Investment from Investment Rs. 150 Cr. to above Rs. 500 Cr. Rs. 500 Cr.
| ee Bathinda, Quantumof 40% VAT+ 45% VAT + a) Muktsar, Fazilka, Ferozepur, —_ incentive 40% CST 40% CST Faridkot, Moga, Barnala, available .
| Sangrur, Patiala, Amritsar and Tarn Taran UC ;
| (b) All approved Industrial Maximum 40% of Fixed 45% of Fixed Parks, Industrial Focal Points — cumulative Capital Capital , and Industrial Estates in all quantumof Investment —_Investment districts of the State. incentive | Bigibility from date of application in years Il 13 () Incentives for Agro and Food Processing Industry.
tal Fixed Capital Investment Fixed Capital Fixed Capital Fixed Capt ¥ Investment Investment Investment (Rs. 1 Cr. to (Rs. 25Cr.to (Rs. 100 Cr.
Re <Rs. 25 Cr.) <Rs. 100 Cr.) and above) Scanned with CamScanner rl NAT Gil IVT. GAZ, (EXTRA), APRIL 7, 2015 1c} (CHTR 17, 1937 SAKA) damien — 4% VAT + 42.5% VAT 4 AS% VAT + we 37.5% CST 40% CST 42.5% CST pg ~ative 40% of Fixed = 42.5% of Fixed 45% of Fined a acentl’ c Capital Capital Capital ge’ Investment Investment Investment : ~~ sate Of 10 10 12 wcy uae gon ins = oT ive for Klectronic Hardware and Information Technology Industry.
7 ti a) | Software Sector Hardware sector Fixed Capital Investment Fixed Capital Investment gone" (Rs. | Cr. and above) (Rs. 5 Cr. and above) | i Mohali and Amritsar only Whole of State of Punjab L 40% VAT + 40% CST 40% VAT +40% CST Ay ve -ymulative 40% of Fixed Capital 40% of Fixed Capital yoo of incentive Investment Investment hal - bility from date of 10 10 en : scation in year’s a, expansion project in an eligible area shall be entitled to the incentives under sub- . i .
.
44/1) on the incremental production only and a separate account of incremental production _ing from such expansion shall mandatorily be maintained.
: ATION: ‘Incremental Production’ in relation to an expansion project shall a ‘7?
EXY :
4n production over and above either the installed capacity or actual production before + expansion, whichever is more.” ms. a as lustration:
If the date of commencement of incentive for the eligible unit is 01.04.2014 and unit before expansion is having an average quarterly production of RO OOO a ; erly capacity is iis of the product over the last 2 years and the installed ae ly om vt ,000/- units of the product. If such a unit, after expansion, P wits 4 : 4 s per quarter, then the incremental production in the quarter will be taken ,000/- units of the product. - P is 01.04.2014 and for the eligible unit 000/- units of the If the date of commencement of incentive | production of 100, nit before expansion is having an quarterly Jv Scanned with CamScanner puUNI AB GOVT. GAZ. (EX | |! ) _» the last 2 years and tho ;
yc ovel he NStaq]] d A), Ap 37 SAKA RIL 7, 2915 ¢ of the product. Cd gu fl | "ie nits of P If Such a unit af q “rterly Capacity 3 yO gor units Per QUArtCR them the ina, ©%?a NSion Crem » Produce a(), n as enta es arte! f : A Product. é eo quantum of incentives availed p the ¥ aN expansion 3 sll be calculated at the Prevalent rates jh Nsion Project during g ef? je turnover in respect 3 P ayable Und Pe taxae Pect of the increme er the Acts [ - : . Ntal r ‘ , ened expansion project subject to sub-rule (1), Production of the Mode of availing tax incentives - (1) | jication 19 the competent authority for the Srant of Eligipi);
ailing ta ? © application, the Competent ites hall refel the matter to the Interdepartmental Committee ath uthorj | amination of Fixed Capital Investment. © purpose of e An eligible Unit shal] Make an 0 The Interdepartmental Committee shall determine the actual Fixed oa ixe capital Investment after taking into account the project appraisal report of , e * .
.
° i: ank oF Financial Institution, certificate of Chartered Accountant, invo; , INVoices of the purchases of capital goods and the industry norms regarding capital 0) Since the total Fiscal incentives cannot be more than 100% of the Fixed Capital Investment, therefore, the eligible unit shall inform the competent guthority about the quantum of tax incentives it wants to claim, subject to the aforesaid cap of total Fiscal incentives.
(4) Keeping in view the provisions of rule 4 and sub-rules (2) and (3) of this rule, the competent authority shall quantify tax incentives and issue an Eligibility Certificate to the eligible unit.
6. Conditions regarding availability of input tax credit to a person purchasing goods from a unit availing incentive scheme,-
(a) The unit availing incentives shall issue a VAT invoice/ ? invoice, as the case may be, as is issued by a unit which is not availing ae scheme.
_ The provisions regarding availability of input tax os as re ? En purchasing goods from a unit which is not availing incentive Bast apply mutatis mutandis to a person purchasing goods from a u ___ incentive scheme:
;
Scanned with CamScanner yJAB GOVT GAZ. (EXTRA), APRIL 7, 2015 (CHTR 17, 1997 SAKA) Wn Th TS, SOc _ AeA Rca atta | , rhat if ihe gowns wold hy A url availing incentive echeme om ol cubyseque sntly sold of Used in manufae luring. processing oF yo cls for sale, by @ taxable person in the course of inter-atute | go” ~ or in the course of export outside India, that taxable perun | | tine ‘ r thea (0 4 laim input tax credit Only to the extent of tux actually ry eS ¥ ¢he unl availing the incentives, in the State Treasury A ro od required for availing benefit of incentives. 1) pre 11 gt ul » ait availing the benefit of incentives dis-continues its business ¢ he i — ine expiry of the incentive period or before the exhaustion of the save limit granted, it shall be liable to deposit the entire amount of incent | antives aV! ailed into the Government Treasury along with interest | aa d annually @ 18% per annum; and P sompounde _ynit availing incentive shall be required to continue its operations till it
(i) ihe" ‘nto the Treasury, a cumulative tax amount equal to at least 50% of r nit of incentives availed. If any unit closes its business before . happening of such an event, it shall be liable to deposit the differential amount of incentive availed and the cumulative amount of tax paid into he Government treasury alongwith interest compounded annually @ 18% per annum. , ; Withdrawal of Incentives.- The entire tax incentives granted in respect | a eligible unit, including the availed amount shall be liable to be withdrawn py the Commissioner, if it is found that.- | (i) the Eligibility Certificate has been obtained by fraud, deceit, mis- 4 representation, mis-statement or concealment of any material fact, or
(ij) the unit availing incentives has indulged in any type of malpractice like bogus billing, bogus claim of input tax credit; or
(iii) the unit has concealed any particulars from any return furnished by him; or |
(iv) the unit has deliberately furnished incorrect particulars therein, OF
(v) the unit has concealed any transactions of sale or purchase from his account books; or
(vi) the unit has not maintainec intelligible er, which pre Scanned with CamScanner pe (CHTR 17, 1937 SAKA) eS a ane Te ome enna | TO the desi mated 0) missione nated officer to assess the tax due from Uv ut je unl has availed input tax credit to which he is not entitled to, or , | 7 he ynit has claimed refund which was not due to him: or \) | ' iL aly aie 2c rAAT F&F he unit Nas ¢ laimed credit in respect of tax, which was not actually paid the unit has not maintained true separate account of incremental 4 (x production resulting from such expansion, \ (1s ditions the Commissioner may direct that the person who has been Mn Ha indulging in any of the above irregularities or malpractices, shall foun . wy of penalty, a sum equal to twice the amount of incentive availed pa _ The provisions of section 56 of the Punjab Value Added Tax Act, b} , shall also be applicable to such person. However, no order shall be a Aby the Commissioner without affording opportunity of being heard.
, piling of returns. (1) The unit holding Eligibility Certificate shall continue ; file the -eturns in the manner as provided under the Acts and the rules ade there under.
0) N otwithstanding anything contained in these rules, the unit holding gligibility Certificate, shall attach an attested copy of the Eligibility Certificate and Treasury Receipts as proof of payment of amount of tax, which is outside the incentive scheme, alongwith the return. Such a unit shall continue to do so «ll the incentive 1s fully availed of or the period of incentive under these rules, expires, whichever is earlier.
9, Assessment of tax.- (1) The assessment of an eligible unit in respect of which an Eligibility Certificate has been granted shall be made in accordance with the provisions of the Acts and the rules made thereunder, but it shall preferably be made within a period of one year from the date of filing of the annual statement or due to be filed, whichever is earlier. The additional demand so determined, if any, shall be paid into the Government Treasury as per the provisions of the Acts and the rules made thereunder.
2). Ifan order of withdrawal of the incentives is passed before the Eligibility Certificate is due for expiry, the entire amount of tax incentive availed by the unit shall become payable immediately in lump-sum and the provisions relating _torecovery of tax, interest and penalty, if any, under the Acts, shall be applicable Scanned with CamScanner NJAB GOVT. GAZ. (kb XTRA), APRIL 7, WIS 17 (CHTR 17, 1937 SAKA) ail of section 35 of the Punjab Value Added Tax a rhe | 4 mutatis mut or yall also! apply andis regarding recovery of tax, interest J? ; i » under these rules concerning first charge of State on the alt due e unit! availing incentive, ih i (he or" maintain E gegister™ Lo a ed by the Prescribed authority.- The | tain a register 0 uthority sha main gister in respect of units av cri® eo ding the grant of Eligibili ee ce. regarding glbility Certificate shall be made in the p es gn? : mi aintained.
er 5 Pa gettlement of disputes.- If any dispute arises regarding eligibility of itor the quantum of incentives to be granted, the matter shall be referred » Fine ancial Commissioner (Taxation), whose decision shall be final and : rgonthe unit.
Annexure-A [See rule 2(t)] Negative List pistilleries, Breweries, Bottling Plants and Canning Plants Manufacturing of Tobacco products, cigar /Cigarettes and Gutka.
Traditional Brick/Tile Kilns except ceramic tile manufactured from basic stage.
4. Manufacturing of Cement ; Vanaspati Ghee Mills Rice Shellers (With Fixed Capital Investment of less than Rs. 10 Crore) o N Refining of petroleum products.
[ron and Steel Industry except Integrated Steel Plants having Fixed Capital Investment of more than Rs. 100 Crore D.P. REDDY, Financial Commissioner Taxation and Secretary to Government of Punjab, Department of Excise and Taxation.
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