Budget 2011: FIEO for extension of weighted deduction to expenditure incurred on clinical trials
FIEO states that removal of the said anomaly will promote in-house R&D in India.
By Agencies |
NEW DELHI: FIEO in its pre-budget recommendation to the Finance Minister Pranab Mukherjee has demanded weighted deduction under section 35(2AB) be extended to the expenditure incurred outside the approved R&D facility by pharma companies i.e. clinical trials, bioequivalence studies conducted in overseas CROs and regulatory and patent approvals, which are directly related to the R&D.
A weighted deduction (@ 150%) on in-house research & development expenditure is allowed to pharma, drugs, automobiles and telecommunication companies. However, the expenditure incurred outside the approved R&D facility by pharma companies’ i.e. clinical trials, bioequivalence studies conducted in overseas CROs and regulatory and patent approvals, which are directly related to the R&D, are currently not covered.
FIEO states that removal of the said anomaly will promote in-house R&D in India.
A weighted deduction (@ 150%) on in-house research & development expenditure is allowed to pharma, drugs, automobiles and telecommunication companies. However, the expenditure incurred outside the approved R&D facility by pharma companies’ i.e. clinical trials, bioequivalence studies conducted in overseas CROs and regulatory and patent approvals, which are directly related to the R&D, are currently not covered.
FIEO states that removal of the said anomaly will promote in-house R&D in India.
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