For 100% Export Oriented Projects (EOU)

Duty-free import of capital goods, components/spares, offices equipment, raw materials, consumables etc...
Supplies made to a 100% EOU from Domestic Tariff Area (DTA) are treated as deemed and exempted from taxes and duties.

Sales are allowed to DTA subject to sectorial caps .
Liberal conditions for foreign equity participation.
Exemption for corporate income tax upto the year 2010 .
Extremely streamlined procedures for all clearances.
Even more liberalised packages for export-oriented Electronics Hardware Technology Parks.

INCOME TAX HOLIDAY - a unique facility to industrial units in Idukki & Wayanad districts : Industrial Units that will be set up in Idukki & Wayanad districts in Kerala on or before 31st March 1999 will be eligible for 5 year income tax holiday. Further, units will also benefit from income tax exemption for 30% of the profits for another 5 years that follow the tax holiday. The scheme has retrospective effect from 1st of October 1994. For further details contact Business Development Group, KSIDC, Trivandrum.

OTHER EXPORT PROMOTION SCHEMES - Under zero duty scheme, capital goods can be imported without duty against the commitments of exports of 6 times CIF value of imported capital goods to be met over 8 years. Under Export Promotion Capital Goods Scheme, Capital goods can be imported at a concessional rate of customs duty of 15% CIF value against the export commitment of 4 times CIF value over 5 years.

For NRIs And Overseas Corporate Bodies (OCBs)

1. Direct invesment in industry, trade, infrastructure etc.
2. Upto 100% equity with full repatriation facility for capital and dividends in the following sectors:
i. 34 High Priority Industry Groups
ii. Export Trading Companies
iii. Hotels and Tourism-related Projects
iv. Hospitals, Diagnostic Centres
v. Shipping
vi. Deep Sea Fishing
vii. Oil Exploration
viii. Power
ix. Housing and Real Estate Development
x. Highways, Bridges and Ports
xi. Sick Industrial Units
xii. Industries Requiring Compulsory Licensing
xiii. Industries Reserved for Small Scale Sector

3. Upto 40% Equity with full repatriation: New Issues of Existing Companies raising Capital through Public Issue upto 40% of the new Capital Issue.

4. On non-repatriation basis: Upto 100% Equity in any Proprietary or Partnership engaged in Industrial, Commercial or Trading Activity.

5. Portfolio Investment on repatriation basis: Upto 1% of the Paid up Value of the equity Capital or Convertible Debentures of the Company by each NRI. Investment in Government Securities, Units of UTI, National Plan/Saving Certificates.

6. On Non-Repatriation Basis: Acquisition of shares of an Indian Company, through a General Body Resolution, upto 24% of the Paid Up Value of the Company.

7. Other Facilities: Income Tax is at a Flat Rate of 20% on Income arising from Shares or Debentures of an Indian Company.

HOW TO REPATRIATE YOUR PROFITS The process of repatriation of capital invested and income earned on it is simple. Companies with direct foreign investment, established on the basis of repatriation, are allowed to repatriate dividends, net of taxes. The equity invested can also be repatriated, should the investor decide to do so.