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North Eastern Region - Freight Subsidy Scheme, 2013.

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..... #39; means production of new article(s) by an industrial unit. The sale value of diversified articles should not be less than twenty five per cent of the turnover, during the previous financial year computed at the full registered capacity of the unit. (c) 'Existing Industrial Unit' means an industrial unit where manufacturing activity has commenced before the date of publication of the Scheme in the Official Gazette. (d) 'Finished Goods' means the goods actually produced by an industrial unit and for which it is registered. (e) 'Industrial Unit' means an industrial unit where a manufacturing activity is carried on. (f) 'Manufacturing Activity' means "An activity which brings about a change in non-living physical object or article or thing (i) resulting in transformation of the object or article or thing into a new and distinct object or article or thing having a different name, character and use; or (ii) bringing into existence of a new and distinct object, article or thing with a different chemical composition or integral structure" (g) 'New Industrial Unit' means an industrial unit where manufacturing activity has commenced on or after t .....

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..... ) Subsidy under the Scheme will be admissible to eligible industrial units for a period of five years from the date of commencement of commercial production. (3) Eligible industrial units in Micro, Small & Medium Enterprises (MSME) Sector, which undergo substantial expansion during the period of validity of the scheme, will be provided subsidy under the scheme for an additional period of five years from the date of commencement of commercial production consequent to substantial expansion, over and above the subsidy already drawn. (4) Existing eligible industrial units located in the selected areas are also eligible for subsidy under the scheme in respect of the additional transport costs of raw materials and finished goods arising as a result of substantial expansion or diversification effected by them after the commencement of the Scheme. Subsidy in such cases will be restricted to the transport costs of the additional raw materials required and additional finished goods produced as a result of the substantial expansion or diversification. 7. Quantum of Subsidy-(1) Unless otherwise specified, the quantum of subsidy to the industrial units located in selected Area (A) would be c .....

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..... the railway station nearest to it and thereafter by rail from that railway station to the Railway Station nearest to the industrial unit and subsequently by road to the location of the industrial unit, whichever is less, will be taken into account. (c) Reimbursement of 50% of the transport costs for movement of finished goods from one State to another within such selected area. The actual cost of transportation or, the cost of movement from the location of the industrial unit to the nearest Railway Station by road and thereafter by rail to the railway station nearest to the location where the finished goods is to be received and subsequently by road from that railway station to the location where finished goods has been received, whichever is less, will be taken into account. (d) Reimbursement of 90% of transport costs for movement of steel as raw material from Guwahati Stockyard of Steel Authority of India Limited (SAIL) upto the location of the industrial units. (e) Reimbursement of 75% of the air freight on movement of electronic components/products partly by air and partly by rail/road. The subsidy would be admissible @75% on the air freight from Calcutta upto the airport n .....

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..... sport costs for movement of industrial raw materials from the State Corporation's designated depots situated in eligible districts of Uttarakhand and Himachal Pradesh to the site of the industrial unit located in the hill districts of the State. (d) In the case of industrial units located in the state of Himachal Pradesh, if movement of electronic components/products takes place partly by air and partly by rail/road, the freight subsidy would be reimbursed @75% on the air freight from Delhi to the airport nearest to the location of the industrial unit and thereafter @75% for movement by rail/road upto the location of the industrial unit and vice-versa. 8. Registration under the Scheme- (1) Industrial unit, desirous of claiming subsidy under the Scheme, shall get registered with the District Industries Centre concerned, prior to the date of commencement of its commercial production for new industrial units or before undertaking substantial expansion for existing industrial unit. (2) The General Manager of the District Industries Centre concerned shall be the competent authority to issue Registration Certificate. No industrial unit should be registered for benefits under the s .....

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..... ndia, for disbursement of subsidy, to consider and recommend all subsidy claims, under the scheme, arising in the State/Union Territory. (3) State Government/Union Territory Administration concerned shall draw up procedures and arrangements for scrutinizing the claims for subsidy under the scheme. (4) State Government/Union Territory Administration concerned shall carry out periodical checks to ensure that the raw materials and the finished goods in respect of which subsidy under the scheme has been given were actually used/produced for the purpose by a system of scrutinizing of consumption of the raw materials and the output of the finished goods and cross verification with power consumed, payment of VAT, excise duty etc. (5) The claim documents submitted by the eligible industrial units shall be scrutinized by the District Industries Centre concerned and their official(s) shall also carry out physical verification of the industrial unit to ensure its physical existence as well as the genuineness of the claim before forwarding its recommendation to Directorate of Industries for further consideration. (6) Directorate of Industries of the State/Union Territory concerned shall ve .....

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..... /Union Territory concerned would give a certificate of such verification made by them. (4) SLC shall also ensure that the subsidy being claimed by the unit is not arising out of transportation of raw material and finished goods by their own goods carriers. 12. Nodal agencies - (1) Unless otherwise specified, the respective nodal agencies for disbursement of subsidy under the scheme shall be as follows:- (a) the North East Development Finance Corporation (NEDFI) for the State of Arunachal Pradesh. Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim; (b) the Himachal Pradesh State Industrial and Infrastructure Development Corporation Ltd. (HPSIDC) for the State of Himachal Pradesh: (c) the Jammu & Kashmir Development Finance Corporation Ltd. (JKDFC) for the State of Jammu & Kashmir and (d) the State Industrial and Infrastructure Development Corporation of Uttaranchal (SIDCUL) for the State of Uttarakhand (2) In the Union Territories of Andaman & Nicobar Islands and Lakshadweep disbursements of subsidy to the industrial units will be made through the Union Territory administration. (3) In the case of Darjeeling District of West Bengal, disbursements of subsidy to .....

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..... ot be taken into account for the purpose of determining transport costs. (3) In the case of small industrial units with a capital investment of ₹ 1,00,000 or less, the requirement of production of certificate, regarding the proof of raw materials, 'imported' into and finished goods 'exported' out of the selected States/Union Territory/areas where the industrial unit is situated, from Chartered Accountant may be waived subject to the condition that such claims are properly verified by the concerned State Government/Union Territory authorities before the subsidy is sanctioned. The State Government/Union Territory authorities would give a certificate of such verification made by them. (4) In the State of Mizoram, if it is not possible for the existing industrial units to furnish a certificate from a registered Chartered Accountant for non-availability of a registered Chartered Accountant, the industrial unit(s) may be asked to provide a certification from the sale tax authorities and counter signed by Commissioner/Director Industries of the State for transportation of raw material/finished goods in lieu of Chartered Accountant certificate. The position regardin .....

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..... ated Rail-Heads I. Jammu & Kashmir (i) Jammu; (ii) Kathua; (iii) Udhampur II. Himachal Pradesh (i) Kalka; (ii) Kiratpur Sahib; (iii)Pathankot; and (iv) Jagadhiri (Yamuna Nagar) III. State of Uttarakhand comprising of the districts of Dehradun, Nainital, Almora, Pauri Garhwal, Tehri Garhwal, Pithoragarh, Uttar Kashi and Chamoli. (i) Rishikesh; (ii) Rampur; (iii)Harrawala; (iv) Jwalapur; (v) Laksar; (vi) Roorkee; (i) Haldi Road; (ii) Rudrpur City; (ix) Bilaspur Road; (x) Kashipur IV. North East Region (including Sikkim) (i) Siliguri; (ii) New Jalpaiguri; ANNEXURE-II NEGATIVE LIST FOR FREIGHT SUBSIDY SCHEME 2013 1. The following Industrial Units will not be eligible for benefits under Freight Subsidy Scheme, 2013 (i} Plantations, Refineries and Power generating units: (ii) Units not complying with environmental standards or not having applicable Environmental Clearance from M/o Environment & Forests (MoEF) or State Environmental Impact Assessments Authority (SEIAA) or not having requisite consent to establish and operate from the concerned Central Pollution Control Board/State Pollution Control Board also will not be eligible for subsidy under the scheme. .....

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..... stance eligibility certificate for Road/Rail/IWT from competent authority 21. Is the unit covered in negative list? ANNEXURE-IV Check-list in which the unit will report to the DIC at the time of each claim of subsidy under Freight Subsidy Scheme, 2013 1. Name & address of unit 2. Period of claim 3. Date of receipt of the claim at Distt. Industries & Commerce Centre 4. Physical verification report of DI&CC 5. Statement of Raw material purchased 6. Statement showing utilization of raw material and finished products manufactured during the claim period 7. Statement of finished goods transported to places outside NER/within NER during the claim period 8. VAT clearance certificate for the relevant period 9 VAT payment challan/VAT return 10. Affidavit as per prescribed format that the unit has not claimed subsidy from any other source 11. Balance sheet for the relevant period showing carriage inward and outward 12, Power bills and proof of payment for the relevant period 13. CA Certificate in respect of Raw material & Finished Goods for the relevant period 14 N.O.C, from Pollution Control Board for-the relevant period 15. Bills and challan for raw materials purchased from .....

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..... y Scheme 2013 Name of the Unit:-------------------------------------- Date of commencement of commercial production:--------------------------------- Period of clam Year-I Year-II Year-III Year-IV Year-V QUARTER QUARTER QUARTER QUARTER QUARTER Date of receipt in DIC 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Date of receipt in SLC Claim amount recommended by SLC (Rs.) Remarks ANNEXURE-VI Check-list to be submitted to the SLC for considering subsidy claims under Freight Subsidy Scheme, 2013 1. Name and address of the unit 2. Period of claim 3. Date of receipt of claim at DIC 4. Whether the claim has been submitted to DIC within one year from the date of incurring expenditure in the respect of which subsidy is being claimed by the industrial unit? 5. Amount claimed by the unit 6. Amount of claim recommended by the Directorate of Industries 7. Scrutiny of Check-List, as per Annexure-III of the notification of the scheme, completed for first claim only) 8. Scrutiny of Check-List, as per Annexure-IV of the notification of the scheme, completed 9. Eligibility of 5 year claim period (to be supported by the Matrix, maintained by the Directorate .....

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