Telangana Mobile Manufacturing Policy
Telangana Mobile Manufacturing Policy 2015 and its Key feautres:
Key Features of the Policy:
- Land allotment to be made on cost basis to anchor units
- Capital subsidy up to Rs.10 Cr. per company,including subsidiaries and ancillary units.
- Interest subvention of 5.25% per annum on term loan for 5 years,subject to overall ceiling of Rs.1 Crore/Unit/pa
- 100% reimbursement of stamp duty.
- Rs.5 Lakh incentive for filing patents.
- Net VAT to be reimbursed on a quarterly basis rate of 5%
- Uninterrupted power supply.
- Overall, emploment of 80% for local persons from the state.
- Units should employ at least 1,000 people withing first 2 years of operations
Phone Maker’s seeking clarity on Mobile Manufacturing policy:
Days after Telangana notified a mobile manufacturing policy, listing incentives and the conditions for availing them, the Indian Cellular Association has expressed apprehension that lack of clarity on tax-related sops could lead to harassment of companies.
While thanking Chief Minister K. Chandrasekhar Rao, IT Minister K.T. Rama Rao and other officials, the Association highlighted the need for such policies to be explicit.
There should be little room for misinterpretation by ground-level revenue and industry department staff.
One of the measures it wants the State government to take is to list items on which the 5 per cent VAT rate will apply.
The time frame when this would be in vogue is also a clarity it has sought.
A body comprising mobile phone manufacturers, big and small, domestic and international brands, the ICA has also raised levy of CST. While the policy says the government will “waive off CST at 2 per cent,” the Association has underscored the need to exempt mobile phones, tablets, their components and accessories from CST (although a similar nomenclature may be appearing in the VAT schedule).
The Association is concerned that the absence of clarity could result in field-level staff of the departments concerned, “arm twisting the industry”.
The minimum level of employment generation laid down to avail the incentives is one more issue raised by the ICA. The number of jobs created by parts, components and accessories-makers depending on their operations, is a point it wants to drive home.
Confirming that the Association has written to the government on the policy, president Pankaj Mohindroo said clarity is essential, particularly if Telangana wants to become a hub for mobile phone manufacturing.
Source : THE HINDU.