Goa - Investment Incentives

The following are the package of incentives offered to industries as per the new industrial policy :-

• One of the most attractive incentive offered by Goa State Government is the 25% subsidy on fixed capital investment limited to Rs.25.00 lakhs.
  
• The sales tax exemption facility available to the new small scale units will be linked to investment also as an alternative and not as a substitute. Sales Tax exemption facility is thus available for a period of 15 years for small scale units and 12 years for large and medium scale units or upto sales tax liability amount equal to the capital cost of the project which ever is reached later. The existing Sales tax deferment schemes will also continue except that it will be modified to operate on the same parameters as mentioned above. The Government has decided that the benefit of sales tax exemption is allowed upto the last point of sale.
  
• Electricity and water will be supplied to customers less than 25% below the commercial tariff.
• The State Government is remitting 50% of the stamp duty paid under Stamp Duty Act in respect of bonds or mortgage deeds executed in favour of EDC, MSFC and scheduled commercial banks and lease deed documents in respect of allotment of plots and sheds by GDDIDC.
• Price preference at the rate of 15% on the purchase made by the Government Departments is available to the registered small scale units with effect from June, 1970.
• Ready built industrial sheds and plots on rental as well as purchase basis are made available by GDDIDC to prospective SSI entrepreneurs as well as women entrepreneurs on preferential basis.
• Goa Industrial Development corporation is offering subsidy to the extent of 50% of the cost of preparation of feasibility studies prepare by the Government industrial consultancy organisations.
• Loans are given by the Directorate Industries and Mines under the Goa State Aid to Industries act. Bridge loan to the extent of 50% of the margin is also given by Industries and Mines Department.
• Subsidy upto 50% of the cost of power generating sets (limited to a maximum of Rs. 1 lakh purchased by small scale units is given by the State Government

Incentives by Central Government

• New units are totally exempted from payment of Income Tax for the first 5 years.
  
• The Small Industry Development Bank of India provides concessional financial assistance to small scale industries through its scheme of refinance loan granted by scheduled commercial banks, Economic Development Corporation and Maharashtra State Financial Corporation to the extent of 90% of loans sanctioned by financial institutions.
  
• Seed capital or margin money loan scheme is also operated by Small Industries Development Bank of India through EDC and MSFC to the extent of 20% of the cost of the project depending upon the merit of each case.
  
• Composite loan scheme to the artisans upto a maximum of Rs.50,000/- is operated by EDC and MDFC for purchase of machinery and equipments as well as for working capital requirement.
  
• Small Industries Service Institute has been granting 50% concession on its prescribed charges for the various consultancy services rendered by the Institute or the prospective and existing entrepreneurs. 50% concession is also available to the job charges of its common facility workshop in general engineering located at the Institute's premises of Quepem Road, Margao.
  
• Indigenous as well as imported machinery have been supplied to small scale entrepreneurs on hire purchase basis by NSIC. Being a backward area, terms and conditions are liberalized.
  
• Non-resident Indians can import capital goods and raw materials without indigenous clearance and other formalities.
  
• With a view to give fillip to production in the small scale sector, certain products are totally exempted from payment of excise duty and partial relaxation has been made for a number of products. The policy is being reviewed from time to time
  

Incentives in IT

The Government hereby grants a set of fiscal and other incentives to the software and hardware industry, being the components of the Information Technology Industry.

• Registration: Software units which are Export Oriented Units (EOUs) should necessarily get a Registration from the Software Technology Park Authority, Goa as Software Technology Parks and the Registration shall be authorisation of availment of fiscal incentives. Such units shall be called STP's and shall include the Software Technology Parks of India, Goa also.
  
• Exemption From Payment of Sales Tax: SPT's shall be exempted from the payment of sales tax on purchases in Goa of all raw materials, components, packaging materials, consumables, spares and all other items consumed or used by it for the purpose of exports. Such exemptions shall be availed of by submitting a copy of the registration certification from STPAG to the supplier of such items who shall not charge sales tax thereon. The supplier shall give a copy of such registration to the Assessing Authorities upon his assessment.
  
• Exemption from Payment of Sales Tax on Capital Goods: STP's are exempt from the payment of sales tax on purchases in Goa for all capital goods used for their business. The list of capital goods would be certified by the STP - Goa and a copy of the same would be used for availment of this exemption.
  
• Exemption from Entry Tax: The STP's shall be exempt from payment of entry tax on capital goods, on any raw material, computer parts, components, consumables, packaging materials, spares and all other items used by them for their business. To avail exemption, a copy of the registration certificate from STP-Goa shall be used as a document of evidence.
  
• Office in Residential Areas: STP's would be allowed to set up offices in residential areas also.
  
• Maintenance of Records in Electronic Form: STP's will be allowed to maintain records under relevant labour laws in the electronic form with the Labour authorities. A common format will be designed in respect of return to be filed by the units under various labour legislations. Paper work will be reduced drastically. The frequency of filing the return will be reduced. Inspection under various Acts will be on a specific complaint only.
  
• Exemption from Tax on Sale of Software in India: The sale of computer software, programming and providing of computer software shall be exempt from the payment of sales tax, entry tax and TOT and all other like taxes in the State of Goa. The sale of computer software and programming and providing of computer software shall also be exempt from Inter State Tax.
  
• Exemption of Tax on SIL: EXIM scripts, REP licences and SIL licences obtained by STP's and sold by them, shall not be liable to Sales Tax, TOT, Central Sales Tax or any other like tax levied by the State Government in the state of Goa.
  
• Exemption from Registration Charges: Goa Government intends to exempt STP's from the payment of special duty payable on registration of the Lease Agreement, Sale Deeds, etc. The registration charges will be nominal. Execution of Lease Agreements, Sale Agreements by the appropriate authority will be simplified and the powers will be substantially delegated to the lower level officials.
  
• Conversion permission: The proposed Software Technology Park Authority (STPAG-A registered society) would have the following representatives:
  
  
  • The Director would have computer knowing expertise.
  • A representative from Town and Country Planning Dept.
  • A representative from Sales Tax Department.
  • A representative from Industries Department.
  • A representative from Labour Department

The STPA would be authorised to grant permission with delegated powers. In respect of Conversion, the power would be restricted to the permission as per the ODP and the case would be referred to the TCP Board for ex-post facto approval. Any permission required outside the ODP would require prior clearance of the TCP Board.

Source: Goa Industrial Development Corporation (GOA-IDC)