FURTHER LIBERALISATION OF TAX BENEFITS UNDER INDUSTRIAL PARK SCHEME
PRESS
NOTE
The Government
of India was administering an Industrial Park Scheme, 1999 for
providing tax benefits under sub-section 4(iii) of Section 801A
of the IT Act to Industrial Park/Industrial Model Town/Growth
Centre set up between 01/04/1997 and 31/03/2002. This Scheme was
published on 1/12/1999 in Gazette of India (Extraordinary) bearing
S.O. No.1201 (E).
The Finance
Act 2001, with effect from 01/04/2002, has further liberalised
the tax benefits under sub-section 4(iii) of Section 801A of the
IT Act. Now there is provision of 100% tax exemption to any undertaking
engaged in developing, developing & operating or operating
& maintaining an Industrial Park for ten consecutive years
out of the next 15 years when the Industrial Park is developed.
These benefits, which were earlier applicable to those Industrial
Parks set up between 1/4/1997 and 31/3/2002, have now been extended
to Industrial Parks, which will be developed till 31/03/2006.
These amendments in the IT Act have necessitated the formulation
of the new scheme. This modified scheme has recently been published
in Gazette of India (Extraordinary) bearing S.O. No.354 (E) on
1/4/2002.
The basic
aims and procedure in the Industrial Park Scheme, 2002 remains
same as that of the previous Industrial Park Scheme 1999. It aims
at setting up of Industrial Park/Industrial Model Town/ Growth
Centre for development of infrastructural facilities including
common facilities such as roads, power, water, drainage, telecommunications,
etc., within its precincts.
The Government
hopes that entrepreneurs will avail of the benefits of the aforesaid
scheme.
