Saturday, 25 January 2014

FAQs on various aspects related to Foreign Direct Investment in ESDM sector


Key Labor Requirements:
1 Maximum hours worked by employees 48 hours per week
2 Number of Indian employees which trigger employer obligation to provide employees state insurance 10
3 Number of Indian emloyees which triggers employer obligation under Provident Fund Scheme, Bonus Act 20
4 Number of years of continuous service which makes an employee eligible for gratuity 5 years
5 Minimum bonus to be paid to an employee drawing a basic wage of INR 10000 or less 8.33%
6 Prohibited age of employing young children in factories 14 years
7 In case of retrenchment due to/or closure, number of employees which trigger employer obligation to seek prior government approval 100
8 On retrenchment/lay off/closure Compensation is payable to employee

* Link to Ministry of labour-(http://labour.nic.in/content/).
Q.24 Are there any other state/Central level regulations?
Yes, there are many other state-level regulations like getting approvals from the fire department, the pollution control board, and environment ministry in some cases. The rules and regulations are different in each state.
The Government of India is soon going to launch an initiative for all business interactions with the government under one single window known as “eBiz” ( https://www.ebiz.gov.in/homebook).License & permit wizard of this eBiz project gives an indication of the license and permits required for setting up the project. The details can be seen from following link-(https://www.ebiz.gov.in/servicesbook). The link gives only the indicative list of approvals required for 5 areas.
“Single window” clearance facilities are available in various states to simplify the approval process for new ventures. For example in National investment and manufacturing zones, Special purpose vehicles (SPV) will provide the facilitation services of getting some of the approvals. Details can be seen from the following link-
( http://dipp.nic.in/English/policies/National_Manufacturing_Policy_25October2011.pdf )
We provide below, some of the clearances that may be required.
S.No. Details Registration/Approving Authority
1 Building Plan State Land Authority
2 Factory Drawing, Application for Factory License Chief Inspector of Factories
3 Contractual Labor (if employed) Registration with Labor Commissioner under Contract Labor Act, 1970
4 Consent to Establish, consent to operate, pollution control certificate, generator installation State Pollution Control Board
5 Importer Exporter Code Number DGFT
6 Factory employing more than 20 Employees Registration of Provident Fund
7 Factory employing more than 10 Employees Registration with ESI
8 Central Excise Registration Central Board of Excise & Customs
9 LPG/Petrol Installed In Factory Petroleum & Explosive Safety Organization
10 Power & Water Connection State municipal authority
11 Factory Occupation Certificate Inspector of factories of respective states
  • The above is an indicative list only.
Q.25 What are the financing or funding options available to carry a business in India?
Various forms of sources are available like:

Section V: Type of manufacturing locations and Electronic Manufacturing Clusters

Q.26 What are Special Economic Zones and Free Trade Warehousing Zones?
  • Special Economic Zones (SEZ)/Free Trading & Warehousing Zones (FTWZ): The SEZ scheme seeks to provide an internationally-competitive and free environment for exports. These zones are designated duty-free enclaves and are treated like foreign territories for the purpose of trade operations, duties and tariffs. The SEZ policy offers several fiscal and regulatory incentives to units operating within these zones. The details on SEZ/FTWZ like rules, areas, act, etc can be seen from the following link-(http://www.sezindia.nic.in/index.asp)
  • Units in SEZ or FTWZ shall be a positive net foreign exchange earner (NFE). NFE shall be calculated cumulatively for a period of five years from the commencement of production.
  • The details of operational SEZ and FTWZ can be seen from the following link-( http://www.sezindia.nic.in/about-osi.asp)
  • A branch office can undertake manufacturing activities in an SEZ unit.
Various kinds of incentives are available for a unit set-up in SEZ is as follows:
  • Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units. (Raw materials, capital goods, consumables, components & spares for authorized operations)
  • 100% income tax exemption on export income SEZ units under Section 10AA of the Income Tax Act for the first 5 years, 50% for the next 5 years thereafter and 50% of the ploughed-back export profit for the following 5 years.
  • Exemption from Central Sales Tax, exemption from service tax. Exemption from state sales tax and other levies as extended by the respective state governments.
  • Single-window clearance for central and state level approvals.It should, however, be noted that a minimum alternate tax @18.5% and DDT are applicable in case of units operating in SEZs and other export-oriented parks.

Q.27 What are Export Oriented Units (EOU’s), Export Technology Hardware Parks (ETHP) & Software Technology Parks (STP’s)?

  • Units can be set up as an Export Oriented Unit or in Export Technology Hardware Park or Software Technology Park. Units undertaking exports of their entire production of goods and services, except permissible sales in DTA, may be set up as an EOU/EHTP or STP
  • Income tax holiday of 10 years for the competing policies like STPI/EHTP/BTP etc are already over. (Ended on 31 March 2011).
  • Rest of the incentives is similar to those available for SEZ units given in Q.26 above.

Q.28 What is national manufacturing policy and national investment and manufacturing zones (NIMZs)?
The National manufacturing policy, approved on October 25, 2011, is the first of its kind for the manufacturing sector as it tries to address some critical constraints for Indian manufacturing sector in the area of regulations, infrastructure, skill development, technology, availability of finance, exit mechanism etc. The policy envisages the creation of National Investment and Manufacturing Zones (NIMZs). NIMZs will be large areas (minimum 5000 hectares) of developed land, with requisite eco-system for promoting world class manufacturing activity. NIMZ will be a self-governing and autonomous body.
There will not be any fiscal incentives like available for SEZs but some of the incentives include:
  • Relief from capital gains tax on sale of plant and machinery of a unit located in NIMZ will be granted in case of re-investment of sale consideration within a period of 3 years for purchase of new plant and machinery in any other unit located in the same NIMZ or another NIMZ
  • The transfer of assets belonging to a firm which has been declared sick will be facilitated by the SPV of the concerned NIMZ
  • The policy provides for specific incentives for technology development and there is a special focus on green/clean technology.
  • Special focus on skills development
  • Special benefits/measures for SMEs in national manufacturing policy.
The details can be seen from the following link-
( http://dipp.nic.in/English/Policies/National_Manufacturing_Policy_25Octo... )
Q.29 What are Electronic Manufacturing Clusters?
Electronic Manufacturing Clusters: There are two types of EMC’s:
A) Brownfield electronic manufacturing clusters are those existing areas which are notified by DeitY. For a unit to be eligible for Modified Special Incentive Package Scheme (M-SIPS) it should be located within the brownfield EMC. DeitY notifies brownfield EMC considering geographical area, infrastructure availability etc. So it is possible to notify new brownfield EMC if it is already not notified.
B) The brownfield EMC’s already notified can be seen from the following link-(http://deity.gov.in/esdm). The focus is on upgrading infrastructure and providing common facilities for ESDM units.
C) Greenfield electronic manufacturing clusters are new industrial areas which are being promoted for attracting investments in electronics. The list of zones thus far approved by DeitY can be seen from the following link-( http://deity.gov.in/sites/upload_files/dit/files/EMC_Appraisal.pdf)
The list of nodal officer to be contacted for EMC can be seen from the following link-
( http://deity.gov.in/sites/upload_files/dit/files/Nodal-officer_EMC.pdf )
Q.30 What is the mode of implementing the scheme of EMCs?
The scheme is implemented through the special purpose vehicle (SPV) which will carry out the business of developing, operating and maintaining the infrastructure, amenities and other common facilities created in EMCs.
Q.31 Who will be the chief promoter?
Chief promoter for the purpose of the scheme is a legal entity which initiates the proposal for a project in a brownfield or greenfield EMC and takes such steps as are necessary for getting the project approved under the scheme, getting the SPV formed and entrusting the project to an SPV in accordance with the scheme and guidelines. A chief promoter may be an individual, registered company or society, industry association, financial institution, R&D institution, state or local government or their agencies or unit/units within an EMC.
Q.32 What are the financial assistance provided for EMC’s?
Brownfield EMC: The assistance will be restricted to 75% of project cost subject to ceiling of INR 0.5 Billion. The remaining project cost shall be financed by other stakeholders of the EMC with a minimum industry contribution of 15% of the project cost.
Greenfield EMC: The assistance will be restricted to 50% of the project cost subject to ceiling of INR 0.5 Billion for every 100 acres of land. The remaining project cost shall be financed by other stakeholders of EMC with a minimum industry contribution of 25% of the project cost.
The administrative expenses would be restricted to 3% of the central assistance in the project. Expenses towards preparation of detailed project report would also be considered a part of project cost.
Q.33 What is the land ownership in EMC?
The scheme supports any of the following different models of land ownership for an EMC:
  • The land for the EMC & Project is owned by the applicant.
  • The land for the project is owned by the applicant but remaining land is not owned by the applicant. In such cases, it is for the applicant to demonstrate his ability to meet the terms of scheme and guidelines with the involvement of the constituents units in the EMC.
Q.34 How to get land for Greenfield EMC?
The land for EMC or the project may be acquired by the applicant through one of the following modes:
  • Outright purchase or long lease from private parties
  • Sale (outright or conditional), or long lease of land by central or state or local government or its agency
  • Centre or state or local government or its agency participating as equity partner in the SPV wherein the cost of land is provided as its share.
Q.35 Does national manufacturing policy applies to EMC?
Yes, national manufacturing policy shall be applicable to Greenfield EMC which would fall within the NIMZs. A collection of EMCs, geographically outside the proposed NIMZs may be treated as a single virtual NIMZ for governance purposes.
Q.36 What are the dates for applicability of EMC scheme?
The scheme will be open for applications for 5 years from the date of notification (November 07, 2012) further period of 5 years shall be available for disbursement of funds to approved applicants. The applications received under the scheme will be appraised on an ongoing basis.
Note:

Section VI: Taxation Aspects

Q.37 What are various forms of taxation in India?
Indirect taxes:
Indirect taxes are of the following types:

1) Customs duty: Payable on imports into India
2) Excise duty: Payable on manufacturing in India
3) Service Tax: Payable on rendering of services
4) Central sales tax/value added tax: Tax on value addition at each level of the distribution network. Tax levied interstate is known as Central Sales Tax.
5) R&D cess: It is a cess on all payments made by an industrial concern for imported technology.
6) Other indirect taxes include: Stamp duty, octroi, property tax etc.
• Most of the taxes are cenvatable that is it can be squared off against paid taxes.
• Government of India is actively considering Goods & Services Tax which will subsume several of above indirect taxes.
• India is signatory to ITA-1 which provides for ZERO duty rates on import of specified items. The ITA-1 agreement can be seen from the following link-
http://deity.gov.in/sites/upload_files/dit/files/Information%20Technology%20Agreement%20(1996)%20(54%20KB).pdf)

Indirect Taxes
S.No. Type of Tax Company BO/LO/PO
7 Excise Duties-Levied on manufacture of goods in India. However, may be recovered by vendors for procurements. Peak Rate is 12.36% Peak Rate is 12.36%
8 Service Tax Peak Rate is 12.36%. Peak Rate is 12.36%.
9 Import Duties/Customs Duty (India is signatory to ITA-1 which provides for ZERO basic custom duty rate on import of specified items) The peak rate of basic custom duty is 10% (this rate can vary depending upon the item specification).
The above rate is basic rate of duty which is further increased by countervailing duty (12%), additional CVD (4%), and education cess @3% of taxes) etc. General peak effective rate – 28.8%
Imports of specified capital goods is allowed at zero basic custom duty rate
Import of certain input items used in manufacturing of electronic items under ITA-1 are allowed at ZERO basic custom duty rate		 The peak rate of basic custom duty is 10% (this rate can vary depending upon the item specification). The above rate is basic rate of duty which is further increased by countervailing duty (12%), additional CVD (4%), and education cess @3% of taxes) etc.
General peak effective rate – 28.8%
Imports of specified capital goods is allowed at zero basic custom duty rate
Import of certain input items used in manufacturing of electronic items under ITA-1 are allowed at ZERO basic custom duty rate
10 Central Sales Tax (Interstate sales) Rate is 2% or local Value Added Tax rate applicable in the State from where goods are sold within India Rate is 2% or local Value Added Tax rate applicable in the State from where goods are sold within India

• Taxes at State Government Level:
S.No. Type of Tax Company BO/LO/PO
1 Value Added Tax Different Rate of taxes on different goods generally 1%, 5% and 12.5% Different Rate of taxes on different goods generally 1%, 5% and 12.5%
2 Entry Tax/Octroi (If applicable) Certain states impose entry tax/octroi in specific goods Certain states impose entry tax/octroi in specific goods
3 Property Tax Property tax/real estate tax is payable as per local municipal laws on commercial and residential property owned. Property tax/real estate tax is payable as per local municipal laws on commercial and residential property owned.
4 Profession Tax Certain states in India levy a profession tax on employees Certain states in India levy a profession tax on employees

• Most of the indirect taxes are cenvatable that is it available for set-off
• The exact rate of import duty can be calculated from the calculator available at the following link-( https://www.icegate.gov.in/Webappl/)
• The basic rate of duty for project imports is 7.5%
Direct taxes:
Direct taxes are of following types:
Corporate tax (Taxes on net income), minimum alternate tax (in case company gets exemption on corporate tax), tax on royalty/fee for technical services, dividend distribution tax, withholding tax, withholding tax on interest etc.
Carry forward of losses are allowed for 8 years and companies are allowed to have depreciation and amortization allowances.
Transfer Pricing: Any international transaction between two or more associated enterprise must be at arm’s length price.
• India also has advance pricing arrangements option which help in avoiding into entering into any dispute with tax authorities.
• The FAQ on APA’s can be seen from the following link-
( www.itatonline.org/info/?dl_id=1215 )
• The government of India has notified safe harbor rules in case of transfer pricing the detailed rules can be seen from the following link-
( http://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=NOTF&schT=&cs... )
Minimum Alternate Tax: Indian tax law requires MAT to be paid by corporations on the basis of profits disclosed in their financial statements in cases where the tax payable according to the regular tax provisions is less than 18.5% of their book profits (plus surcharge and education cess). However tax credit (in case MAT paid is more than tax payable as per normal provisions of the ACT) is allowed to be carried forward for 10 years.
Withholding Tax: Businesses need to withhold tax on specified payments viz salary, contractual, brokerage, commission, professional fee etc.
• Taxes at Central Government Level: (Direct Taxes)
S.No. Type of Tax Company BO/LO/PO
1 Tax on Profits (Income Tax)
-Financial Year 2013-14 (From April 2013 to March 2014)		 If income is less than INR 10 million than rate is 30.9%, If income is between INR 10 million to INR 100 million then rate is 32.44% and if income exceeds INR 100 million then tax rate is 33.99% If Income is less than INR 10 million than rate is 41.2%, If income is between INR 10 million to INR 100 million then rate is 42.02% and if income exceeds INR 100 million then tax rate is 43.26%
2 Personal Income Tax As per slabs of income As per slabs of income
3 Tax on distributed profits Rate is 16.99%-on distribution of dividends by the Indian company No tax on distributed profits
4 Wealth Tax A company is liable to pay tax on certain assets such as motor car, etc in excess of INR 3 million in India @ 1% A project Office is liable to pay tax on certain assets such as motor car, etc in excess of INR 3 million in India @ 1%
5 Social Security Benefits Every establishment in India, employing 20 or more persons is required to register with the social security authorities unless they are an exempt establishment. For Indian passport holders, social security contribution is optional for employees if their salary exceeds INR 6,500 per month. Every establishment in India, employing 20 or more persons is required to register with the social security authorities unless they are an exempt establishment. For Indian passport holders, social security contribution is optional for employees if their salary exceeds INR 6,500 per month.
a) Employee Contribution 12% of salary 12% of salary
b) Employer Contribution 12% of salary 12% of salary
6 International Worker International worker may get exemption from social security regulations, if there is SSA with the country, and the worker is contributing in his/her own country and for defined terms and conditions in relevant SSA. International worker may get exemption of social security regulations if there is SSA with the country, and the worker is contributing in his/her own country and for defined terms and conditions in relevant SSA.

In case of LLP the tax on income are as follows:
• Business income: 30% plus surcharge and education cess
• Alternate Minimum Tax: The concept to AMT is similar to the Minimum Alternate Tax (MAT), as applicable to the Companies but since there is no concept of book profits in case of LLP, the LLP’s will be liable to pay AMT on their adjusted total income (equivalent to adjusted taxable income). Similar to Company, LLP paying AMT can claim its credit for 10 assessment years. But as opposed to Company, LLP will not be liable to pay AMT on those income, which are exempt under provisions of Income Tax like long term capital gain under section 10 (38) and income from dividend under section 10 (34) etc
• There is no dividend distribution tax on LLP’s.
Royalty Rates
The rates of royalty country wise can be seen from the following link-( http://law.incometaxindia.gov.in/DIT/File_opener.aspx?fn=http://law.incometaxindia.gov.in/Directtaxlaws/dtrr2005/R10.htm )



Q.38 Does India has double taxation avoidance agreements and free trade agreements?

India has Double Taxation Avoidance Agreements signed with various countries; the list of countries can be seen from the following link-
(http://law.incometaxindia.gov.in/DIT/intDtaa.aspx).
Benefits of DTAA:
• Lower Withholding Taxes (Tax Deduction at Source)
• Complete Exemption of Income from Taxes
• Underlying Tax Credits
• Tax Sparing Credits
• DTAA provides lower rate or exemption for taxes on capital gains (gains made by selling the business unit)
• It also provides taxability of business profits if the company has permanent establishment in India. A building site or construction, installation or assembly project constitutes a permanent establishment only if it continues for a period of more than 183 days in any fiscal year.

India also has free trade agreements providing for concessional import duties. The details of FTA’s and other agreements can be seen from the following link-
( http://commerce.nic.in/trade/international_ta.asp?id=2&trade=i )

Q.39 What are the reporting requirements related to taxes?

Tax liability in India can either be discharged through the advance tax mechanism or the tax withholding mechanism. Under the advance tax mechanism, one estimates the entire year’s tax liability and deposits through three annual installments, i.e. September 30 (30%), December 15 (30%) and March 15 (40%).
An LO is not required to pay corporation or withholding tax as there is no income.


Section VII: Visa Types

Q.40 What are the various types of Visas?

Government of India issues the following visas: Business Visa, Conference Visa, Diplomatic Visa, Employment Visa, Emergency Visa, Entry Visa, Journalist Visa, Medical Visa, Missionaries Visa, and permit to re-enter within 2 months, Research Visa, Student Visa, Tourist Visa, and Transit Visa. Please follow the link for details on Visa Provision and supporting documents.
(http://indianvisaonline.gov.in/visa/).
Preferable visas from an industry point of view are business visa, employment visa and conference visa.
· FAQs relating to work-related visas (business/employment) issued by India can be seen from the following link-
(http://mha.nic.in/pdfs/work_visa_faq.pdf).
· FAQ relating to conference visa can be seen from the following link-
(http://mha.nic.in/pdfs/ForeigD-FAQs-on-ConferenceVisa.pdf).

Q.41 Is there any act to regulate competition in India?

Competition Act: The government of India enacted a modern competition law in the form of Competition Act, 2002 and established the Competition Commission of India to carry out the objectives of the Act. The details can be seen from the following link-
( http://www.cci.gov.in/images/media/competition_act/act2002.pdf?phpMyAdmi... )

Q.42 Can companies in India enter into foreign technology agreements?

Technology Agreements: Foreign investment in technology agreements effecting payments for royalty, lumpsum fee for transfer of technology and payments for use of trademark/brand name are allowed under the automatic route, i.e., without any approval of the Government of India. Foreign technology includes technical know-how, design, drawing, engineering service and royalty. Use of foreign brand names/trademarks is permitted for sale of goods in India.

Section VIII: Information on various types of Incentives

Q.43 What are the various types of incentives available?

There are various types of incentives available from Central and state government departments for establishing a manufacturing unit. The incentives differ among the states and registration will be required to obtain various kinds of incentives.
Central Government Incentives:

Incentives on exports: The foreign trade policy provides various kinds of incentives for export of goods and services. The various types of incentives are as follows:
• Duty exemption/remission scheme:
Advance Authorization: Duty free imports of inputs allowed for exports provided minimum 15% value addition is achieved. The scheme also requires import to be completed in 12 months and exports within 18 months.
Annual Advance Authorization: It is available only to exporters with at least 2 years of exports. The entitlement will be equivalent to 300% of the FOB value or INR 10 million whichever is more. The authorization will be valid for 12 months.
Duty Free Import Authorization: Under this exporters are allowed to import inputs free of basic customs and or additional/SAD duty. Scheme covers only products under standard inputs output norms. It also required minimum value addition of 20%.
Duty Drawback: Duty Drawback is the rebate of duty chargeable on imported material or excisable material used in the manufacturing of goods in and is exported. The exporter may claim drawback or refund of excise and customs duties being paid by his suppliers. Drawback Schedule covers now about 4600 products.
• Export promotion capital goods scheme-Under the scheme import of capital goods at a zero basic custom duty is allowed for export purposes. The capital goods for pre/post production stage also permitted. The exports to be effected equivalent to 6 times the duty saved on capital goods. Exports to be completed in 6 years.
• Focus Market Scheme: The basic objective is to offset high freight cost and other externalities to select international market. The benefit of 3% transferable duty free credit entitlement for specified countries. The special focus markets to get 4% benefits.
• Focus Product Scheme: The basic objective is to encourage products with high export intensity/employment. Benefit of 2 or 5% transferable duty free credit entitlement for specified products. Certain products to get 2% bonus benefits.
• Market Linked Focus Product Scheme: The basic objective is to incentivize exports with high employment intensity in rural and semi-urban areas. The benefit of 2% transferable duty free credit entitlement for specified products.
• The list of electronic items covered under FPS & MLFPS can be seen from the following link-
( http://deity.gov.in/sites/upload_files/dit/files/Electronic%20items%20no... )
• Market Access Initiatives: Under MAI scheme, financial assistance is provided for export promotion activities on focus country, focus product basis. Financial assistance is available for Export Promotion Councils (EPCs), Industry and Trade Associations (ITAs), Agencies of State Government, Indian Commercial Missions (ICMs) abroad and other national level institutions/eligible entities as may be notified.
•
• Incremental exports incentivisation scheme: A duty credit scrip @ 2% on the incremental growth (achieved by the IEC holder) during the current year is given. (Incremental growth shall be in respect of each exporter (IEC holder) without any scope for combining the exports for Group Company). The scheme is region specific and covers exports to USA, Europe and Asia. In addition, 53 countries in Latin America and Africa
• The details of various exports incentives schemes and procedures can be seen from the Foreign trade policy and procedures available on the following link-( http://dgft.gov.in/exim/2000/download-ftp1213.htm )
• For the incentives and facilities offered to units in SEZs please refer Q.26
• North Eastern States: There is an incentive scheme of central government for undertaking established in north eastern states. The details can be seen from the following link-
(http://dipp.nic.in/English/Schemes/ner.aspx)
• R&D concessions: There are some deduction incentives for research and development expenditure.
• Investment allowance (additional depreciation) at the rate of 15 percent to manufacturing companies that invest more than INR 1 billion in plant and machinery during the period 1.4.2013 to 31.3.2015.
• Incentives available for unit in NIMZ please refer to Q.28
• Apart from above additional incentives are given under various schemes in ESDM sector and by the state governments. The details of which can be seen from Q.44 to 60

Q.44 Are there any incentives or schemes for electronics system design and manufacturing sector unit?

Yes, Department of Electronics and Information Technology has launched the following schemes to promote domestic manufacturing of electronics items:
· Modified special incentive package scheme (M-SIPS) provides for subsidy of 25% of capital expenditure in non-SEZs (and 20% in SEZs) for investments made for 10 years. In addition, reimbursement of central taxes and duties on specified projects is also provided for period of 10 years. The support is available for any stage of value-addition of the electronic product. Incentives start only when initial capital expenditure cross minimum threshold and thereafter it is given on annual capital expenditure.
· Preference to domestically manufactured electronic goods in government procurement is provided.

Q.45 When was the M-SIPS launched and what is the duration of the scheme?

MSIPS was launched on 27 July 2012 and it will be applicable for 3 years from this date.

Q.46 Can existing units claim benefits under M-SIPS?

The MSIPS will be applicable to investments in new ESDM units and expansion of capacity/modernization and diversification of existing ESDM units. ESDM unit shall mean a unit engaged in design and manufacturing of the electronics and nano-electronics and their accessories. It includes all stages of value addition and also includes electronics manufacturing services.
Expansion of existing unit would mean increase in the value of fixed capital investment in plant & machinery of an ESDM unit by not less than 25% for the purpose of expansion of capacity/modernization and diversification.

Q.47 What are the items and investment thresholds under M-SIPS?

The list of items eligible for incentives and investment threshold can be seen from the following link-
( http://deity.gov.in/sites/upload_files/dit/files/MSIPS%20Notification.pdf )

Q.48 What is the meaning of capital expenditure for the purpose of claiming benefits under M-SIPS?


The capital expenditure will be the total expenditure in land, building, plant & machinery and technology including R&D. The total cost of land exceeding 2% of the capital expenditure shall not be considered for calculation of incentives in this regard
-

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