This Tax Alert summarizes the amendments made in the Modified Special Incentive Package Scheme (M-SIPS) vide Notification no. 27(35)/2013-IPHW dated 3 August 2015 issued by the Ministry of Communications and Information Technology (Division of Electronics and Information Technology).
M-SIPS policy was first introduced in July 2012 by the Central Government to promote investment in the Electronics Systems Design and Manufacturing (ESDM) sector, by providing various incentives to new units/ significant expansion by manufacturers and service providers in this sector.
The revised M-SIPS policy seeks to expand the scope of the scheme by extending the benefits to additional products / verticals. Further, the time limit for making applications under the Revised Scheme has been extended for a period of 5 years beyond the original expiry date of the scheme in July 2015. The revised investment thresholds for various units to be eligible for incentives under the scheme have also been prescribed