Sale Tax Concessions

The benefit of sales tax concessions would be available to new units on graded/fixed scale mentioned in the table below.

For the purpose of granting sales tax concession incentive, the State shall be divided in 3 categories:

The maximum limit of sales tax concession to new units in SSI units and L&M units and the maximum period of exemption for which the benefit would be available is as under:-

All new units in category 'B' and 'C' after availing the benefit of sales tax concession shall continue their production atleast for the next five years not below the level of average production in preceding five years

New industrial units falling in category 'B' & category 'C' can opt for the scale of concession on fixed slab scale as applicable to units in category 'A'.

The eligible units will be allowed to collect applicable sales tax and retain the permissible benefit as State subsidy.

The investment in land and building shall not exceed the investment made in plant and machinery for the purpose of calculating fixed capital investment.

The maximum extent of concession to agro based units shall be 250% of fixed capital investment and for information technology / software / electronics will be 300% of fixed capital investment.

Industrial units under going expansion / diversification would be given the benefit of sales tax concession as per the above scale only on the investment in plant & machinery. The benefit will be restricted to the 50% fixed slab scale and will be given for five years.

Exemption from Payment of Electricity Duty

All new industnal units except those in the negative list of industries are exempted from the payment of electricity duty for a period of 5 years throughout the State.

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Incentives to Tiny Units in Rural Areas

The industrial units set up under Rural Industrial Scheme shall be eligible for the following benefits.
a) Electncity duty exemption and sales tax concessions at par with Other units in small
scale sector.
b) Price preference of 10%.
c) Marketing assistance.

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Small & Medium Enterprises (SMEs) Renewal Fund

To improve the performance of SMEs and to enable them to compete globally an SMEs Renewal Fund shall be set up for:

• Technology upgradation

• Creation of quality consciousness

• Promotion of branding for improved marketing

• Adoption of improved management practices

• Capacity Building

The State Government shall take steps necessary for revival of sick and potentially sick industrial units which can be assisted to become viable. The Higher Level Screening Committee constituted for sanctioning sales tax concessions shall be empowered to grant sales tax concessions to sick/potentially sick units at par with new units for a period of three years if the units can be made viable.

No industrial unit financed by the State Financial Institutions shall be charged penal interest for default if it satisfies the management that the default was not wilful.

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Entrepreneurship Development Programme (EDP)

The State will take effective measures to promote Entrepreneurship for rapid industralisation of the State. Entrepreneurship development programmes will be organised with special focus on rural youth and women. Non Government Organisations and Industries Associations will be fully involved in finalising the curriculum for the training programmes and for organising EDPs.

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Tax Reforms and Fiscal Discipline

All the Northern States have agreed to bring about uniformity in tax rates in the region and simplify system by reducing the number of slabs by grouping the commodities appropriately. Follow up measures shall be taken to achieve this goal

Other measures would be considered by the Government like introducing self assessment scheme for manufacturing units/traders having turnover upto Rs 50 lacs, abolition of certain statutory forms, schemes for settlement of disputes, computerisation of databank etc. to improve the interface between industry and the revenue collecting agencies.

The State Government shall endeavour to priorities its investment policies in conformity with the developmental needs of the State.

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Package of Incentives

The State Govt. offers the following incentives to the industrial units being set up in Haryana.

Rebate in cost of land

Rebate equivalent to 20% of the land cost is given if the Industrial unit starts commercial production within 3 years of offer of possession of industrial plot.

Exemption for payment of electricity duty

All new industrial units except those in the negative list of industries are exempted from payment of electricity duty for a period of 5 years througout the State.

Customised package

Customised package of incentives is provided for prestigious projects having an investment of Rs.30 crore and above.

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Incentives for IT Industry

Preferential allotment of land

The State Government shall give preferential treatment for allotment of land to the IT industries on an ongoing basis in all industrial estates developed by State agencies.

Continuous uninterrupted power supply

The State Government shall endeavour to provide continuous and uninterrupted power supply for IT industries and shall exempt them from scheduled power cuts.

Facilities on Generator sets

Captive power generation sets installed by the Information Technology Industry will be eligible for total exemption from payment of electricity duty without any time limit.

Change of land use

No charge for change of land use (CLU) shall be levied for the IT Industry/IT Parks for 3 years i.e. up to 31.03.2003. Permission for sale/ leasing/subleasing in constructed buildings and open area shall be permitted for optimum utilization of infrastructure. Licences for selling up STPs shall be given liberally and on easy payment terms.

Floor Area Regulations (FAR)

Relaxation in FAR shall be permitted up to 100% in areas specifically notified by the State government for IT units and in all IT parks.

Registration and stamp Duty

Rebate on registration and transfer of property charges and exemption from stamp duty on a tapering scale shall be given for sale/lease of built-up space to the IT industry establishing facilities in private STPs/IT parks.

Applicable rate of Sale Tax

IT Software Industry will be totally exempted from payment of sales tax. The applicable rate of sales tax on computers and computer peripherals shall be reduced to 0.25%.

Exemption from Pollution Control

IT Software industry shall be exempted from the purview of the Haryana Pollution Control Act, except in respect of power generation sets of more than 10 KVA capacity. 

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