Rajasthan offers tax sops for investment in defence sector

JAIPUR: To attract investors, the Rajasthan government has amended its investment promotion scheme, 2014, to offer tax benefits for funding in the defence sector.

The amendment, made on April 24, 2015, would be effected from the retrospective date of March 9, 2015, an official spokeman said.

Enterprises, making an investment equal to or above Rs 100 crore but below Rs 500 crore in the defence sector will be given a number of benefits, the spokesman said.

Investors would be provided investment subsidy of 50 per cent on VAT and CST for seven years, employment generation subsidy up to 10 per cent of VAT and CST for seven years, and 50 per cent exemption from payment of entry tax on capital goods, for setting up plant for new unit or for expansion of existing enterprise or for revival of sick industrial enterprise.

Enterprises making an investment equal to or above Rs 500 crore in the defence sector will get benefits like investment subsidy of 65 per cent of VAT and CST for ten years, employment generation subsidy up to 10 per cent of VAT and CST for ten years, and 50 per cent exemption from payment of entry tax on capital goods.

These benefits would be for setting up of plant for new unit or for expansion of existing enterprises or for revival of sick industrial enterprise, the spokesman said.