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,
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
vi. Deep Sea Fishing
vii. Oil Exploration
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