Punjab Fiscal Incentives - 2013
Industrial Promotion Policy, 2013
FISCAL INCENTIVES
Department of Industries and Commerce,
Government of Punjab
1
Contents
Punjab Fiscal Incentives - 2013
1.
Introduction
2.
Incentives for Manufacturing Sector Units.
3.
Incentives for Integrated Textile Units.
4.
Incentives for Agro / Food processing Industries
5.
Incentives for Electronic Hardware and IT industry
6.
Way forward
www.pbindustries.gov.in
1. Introduction
Punjab Fiscal Incentives - 2013
Economic Snapshot –% Distribution of GSDP
www.pbindustries.gov.in
1. Introduction
Punjab Fiscal Incentives - 2013
Fiscal Incentives will :►
Enable Secondary and Tertiary sector contribution in CAGR.
►
Enhance the industrial contribution toward state CAGR (95% of the total
industrial units are small and medium category)
►
Over all development of State by providing incentives in zones
• Less developed zone/ Areas will have – More Incentives
• More Developed zones/ Areas will have – Less incentives.
www.pbindustries.gov.in
1. Introduction
Punjab Fiscal Incentives - 2013
Liberal incentives for all sectors
► Manufacturing sectors
► Integrated Textile units
► Agro and Food Processing sectors
► Electronic Hardware and Information Technology sectors
www.pbindustries.gov.in
2. Incentives for Manufacturing
Sectors
Punjab Fiscal Incentives - 2013
Zone I
Fazilka, Ferozepur, Tarn Taran, Amritsar,
Gurdaspur, Pathankot, Hoshiarpur, Sangrur,
Barnala, Mansa, Bathinda, Sri Muktsar Sahib
and Faridkot. All approved Industrial Parks,
Industrial Focal Points and Industrial Estates in
all districts of the State.
Zone II
Patiala, Fatehgarh Sahib, Ludhiana, Moga,
Jalandhar, Kapurthala, Shaheed Bhagat Singh
Nagar
(Nawanshahr),
Rupnagar
and
Ajitgarh(Mohali).
www.pbindustries.gov.in
2. Incentives for Manufacturing
Sectors
Eligible Area
Zone I
Maximum
cumulative
quantum
of
incentive
FCI
Rs. FCI
1.0cr
to above
Rs. 10cr
Rs.10cr
to below
Rs. 25cr
50%VAT+
50%
75% CST
VAT+
(*only in
75% CST
IFPs.)
50% of FCI
50% of
FCI
Nil
Zone II
Maximum
cumulative
quantum
of
incentive
Eligibility
from date of
application in
Nil
7 Yr
FCI
Rs.25cr
to below
Rs.
100cr
60% VAT
+75%
CST
60% of
FCI
25%
30%
VAT+
VAT+
50% CST 50% CST
25% of
30% of
FCI
FCI
8Yr
10Yr
Punjab Fiscal Incentives - 2013
FCI
FCI
ED
Rs.100cr to Rs.500cr
below Rs. and above
500cr
SD
PT
70%VAT
+75%CST
80%VAT
+75%CST
100%
100%
100%
70% of FCI
80% of FCI
100%
of FCI
N.A.
N.A.
35% VAT+
50% CST
40% VAT+
50% CST
50%
50%
50%
35% of FCI
40% of FCI
50% of
FCI
N.A.
N.A.
11Yr
13Yr
3. Incentives for Integrated Textile
Units.
Punjab Fiscal Incentives - 2013

Retention of VAT and CST

Electricity Duty Incentive

Stamp duty Incentive

Property Tax Incentive

Market Fee/ Rural Development Fund/ Infrastructure Development
Cess Incentive
www.pbindustries.gov.in
4. Incentives for Agro / Food
Processing Industries
FCI
(Rs 1 Cr to <
Rs25 Cr)
FCI
(Rs 25 Cr to <
Rs 100 Cr)
Punjab Fiscal Incentives - 2013
FCI ( >=
Rs 100
Cr)
Electricity
Duty
Stamp
Duty
Property
Tax
80% VAT + 85% VAT +
75 % CST 80 % CST
90 %
VAT +
85 %
CST
100%
100%
100%
Ceiling
quantum of
FCI
80%
85%
90%
100%
Period
10 Yr
10 Yr
12 Yr
10 to 12 Yr
One time
10 to 12 Yr
as per range of
investment
as per range of
investment
► Mandi Fee, RDF, ID Cess Incentives on Basmati, Maize,
Wheat Fruits and Vegetable allowed on purchases made within
the State for processing
www.pbindustries.gov.in
5. Incentives for Electronic Hardware and
Information Technology units
Punjab Fiscal Incentives - 2013
IT/ ITeS/Knowledge Industry ( In the Districts of Mohali and Amritsar only with
min. investment of Rs 1 Cr)
► VAT incentives
► Power related Incentives
► Stamp duty Incentives
► Property Tax Incentives
► Exemption from PPCB
► Exemption from inspection under labour laws
► Exemption from PAPRA
► Incentives related to Housing and Urban Development
www.pbindustries.gov.in
5. Incentives for Electronic Hardware and IT
industry
Punjab Fiscal Incentives - 2013
ii. Electronic Hardware manufacturing industry ( Min Investment Rs 5 Cr)
► VAT incentives
► Power related Incentives
► Stamp duty Incentives
► Property Tax Incentives
► Exemption from PPCB
► Exemption from inspection under labour laws
► Exemption from PAPRA
► Incentives related to Housing and Urban Development
www.pbindustries.gov.in
5. Incentives for Electronic Hardware and IT
industry
Punjab Fiscal Incentives - 2013
Contd.
ii. Electronic Hardware manufacturing industry
► Preferential Market Access (PMA)
► Special incentive for Semi- Conductor Wafer FAB
.
.
www.pbindustries.gov.in
6. Way Forward
Punjab Fiscal Incentives - 2013
► Facilitation Measures:For the ease of doing business in the state, Approval to be accorded in
accordance with following major steps
i.
Simplify procedures and documents.
ii.
Transparent work flows
iii.
Online application and approval
iv.
Self attestation of documents
v.
Third party certification of building plans, stability, safety etc.
vi.
Payment gateway for online payments
www.pbindustries.gov.in
6. Way Forward ( contd.)
Punjab Fiscal Incentives- 2013
.
Steps already taken
► PPCB : Simplified Consent Management for investors:
•
Online consent Management with online payment facility
•
Common application form for industry
•
Exemption from Site clearance u/s 41 (A) of the Factories Act, 1948
for industries set up in designated/ approved areas.
www.pbindustries.gov.in
Thank you
15