New MSMEs to get 100% VAT, CST, SGST exemption in Andhra Pradesh

HYDERABAD: The new Micro Small and Medium Enterprises (MSMEs) to be set up in Andhra Pradesh would be given 100 per cent exemption on VAT, CST and SGST for five years from the date of commercial production, according to the new MSME policy for 2015-20, approved by the state cabinet today.

The policy also assures uninterrupted 24x7 quality power with power cost reimbursement at Rs 1 per unit for 5 years from commencement of commercial production.

"100 per cent VAT/CST/SGST reimbursement for Micro and Small enterprises for 5 years from commencement of commercial production; and 75 per cent for Medium enterprises for 7 years or up to realization of 100 per cent fixed capital investment, whichever is earlier," it says.

As per the policy, 15 per cent investment subsidy on fixed capital investment up to Rs 20 lakh for Micro and Small enterprises, besides interest subsidy for fixed capital investment by new Micro and Small enterprises on term loan in excess of 3 per cent per annum up to 9 per cent per annum for 5 years from commencement of commercial production, would be allowed.

It also provides for 100 per cent stamp duty and transfer duty reimbursement on purchase of land, mortgages and hypothecations and reimbursements to be done within six months.