About:

The Industrial and Investment Policy of Assam , 2014 was declared by the State Government have laid down of fiscal incentives for investors in Assam . The policy would be valid for five years w.e.f 1/3/2014 and all new units as well as existing unit undergoing substantial expansion, modernization and diversification shall be eligible to enjoy the incentives under the policy.

The highlights of the incentives under the policy are:

(a) State Capital Investment subsidy for Micro units

(b) Tax Exemption which includes (i) Value Added Tax exemption,

(ii) Entry Tax exemption,

(iii) Luxury and Tax Exemption.

(c) Subsidy on quality Certification/Technical knowhow

(d) 20% State Capital Subsidy on cost of PV Modules upto 20 KW.

Eligibility:

Following shall be the eligible unit for the purpose of this Scheme :-

Category – “A” : A new unit, which manufactures goods in Assam and has commenced commercial production on or after 1st March, 2014 but during the validity period of Industrial Policy, 2014 and is in compliance with the eligibility criteria under this Scheme shall be treated as an unit eligible for benefit under this Scheme under category – “A”. Furthermore, prior intimation of setting up new unit to the concerned implementing agency as well as the jurisdictional tax authority must simultaneously have been given. In case of any dispute in a tax matter of the Scheme, the decision of the Government of Assam in Finance (Taxation) Department shall prevail.

Category – “B” : A new or an existing unit, which manufactures goods in Assam and which undertakes substantial expansion at the same location, and such substantial expansion is completed and commercial production thereafter commences on or after 1st March, 2014 but during the validity period of Industrial Policy, 2014 and is in compliance with all the eligibility criteria laid down under this Scheme shall be treated as an eligible unit under category – “B”.“Substantial Expansion” means increase in value of fixed capital investment of a new or existing unit by at least 25% as well as increase in employment by at least 10% and at least 25% increase in production compared to average annual production of previous 3 years. Prior to going for substantial expansion, the unit should be operating at least at an average of 75% of its installed total capacity during the period of 3 previous years. Furthermore, prior intimation of substantial expansion to the concerned implementing agency as well as the jurisdictional tax authority must have simultaneously been given. In case of any dispute in a tax matter of the Scheme, the decision of the Government of Assam in Finance (Taxation) Department shall prevail.

Category – “C” : A new or an existing unit, which manufactures goods in Assam; and which undertakes diversification for manufacturing of new product(s) at the same location of the new or an existing unit; and such diversification is completed and commercial production thereafter commences or after 1st March, 2014 but during the validity period of Industrial Policy, 2014; and is in compliance with all the eligibility criteria laid down under this Scheme shall be treated as an eligible unit under category – “C”. “Diversification” means increase in value of fixed capital investment of a new or an existing unit by at least 25% as well as increase in employment by at least 10%. Furthermore, Prior intimation of diversification to the concerned implementing agency as well as the jurisdictional tax authority must have simultaneously been given. Incase of any dispute in a tax matter of the Scheme, the decision of the Government of Assam in Finance (Taxation) Department shall prevail.

Category – “D” : A new or an existing unit, which manufactures goods in Assam; and which undertakes modernization at the same location of the new or the existing unit in order to reduce cost of production thereafter commences on or after 1st March, 2014 but during the validity period of Industrial policy, 2014; and is in compliance with all the eligibility criteria laid down under this Scheme shall be treated as an eligible unit under category – “D”. “Modernisation” means increase in value of fixed capital investment involving new/improved technology having definite advantage(s) of a new or existing unit by at least 25% in the same location. Furthermore, prior intimation of modernization to the concerned implementing agency as well as the jurisdictional tax authority must have simultaneously been given. In case of any dispute in a tax matter of the Scheme, the decision of the Government of Assam in Finance (Taxation) Department shall prevail.