Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: list of goods taxed at 4% :: TDS :: empanelment :: due date for vat payment :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: Central Excise rule to resale the machines to a new company :: form 3cd :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: ACCOUNTING STANDARDS
 
 
News Headlines »
 Reforming the income tax tribunal
 How the new system might impact consumers and businesses
 10 ways you get benefited from filing your tax return
 Returns under CGST Act,2017 with Rules
 Ten facts to know about filing income tax return this year
 The Ten Commandments of Tax Filing
 How to claim income tax refund
 How to time your buys to have best of two tax regimes
 Here's why you must always check Form 26AS before filing tax return
 Want to file your income tax return after June 30? Having Aadhaar card is a must
 Timeline for filing of tax returns extended by two months

FICCI seeks tax sops for biotech cos
December, 25th 2006
To effect a five-fold increase in revenue generation


The chamber has recommended that tax benefit should also be extended to expenditure incurred on clinical trials for all companies.

With a view to promoting innovation in biotechnology and effect a five-fold increase in revenue generation to $5 billion, the Federation of Indian Chambers of Commerce and Industry (FICCI) has proposed seven-point package to the Government.

The chamber has sought some tax benefits for biotech firms. Expenditure incurred on clinical trials by companies is currently not accepted as an expense to be included for weighted tax deduction at 150 per cent.

The chamber has recommended that tax benefit should also be extended to expenditure incurred on clinical trials for all companies. Since expenditure incurred on scientific research is allowed there is no reason why it cannot be extended to clinical trials also, the chamber has argued.

Second, the Government may consider providing relief to recognised biotech, pharmaceutical and clinical research companies by giving a blanket permission of around Rs 1 crore per annum for import of laboratory consumables. These can be certified as non-hazardous, if required, the chamber has recommended.

Third, at present there is a lack of technical expertise at the airports and ports to handle the biological materials. Customs officials may be updated regularly with the new policies on issues related to handling of biological materials.

Promoting Investment

Fourth, the purpose of exemption of basic duty on equipment for research is to promote investment in basic research but the same is being nullified by subjecting it to additional duty of 16 per cent. Hence, the anomaly should be corrected.

The chamber has noted that there is exemption against the additional customs duty applicable to public funded research organisations or non profit research organisations where they have to pay only 5 per cent custom duty on equipment for research.

The chamber has demanded similar duty benefit for Government funded organisations and private sector for research activities.

Fifth, on the lines of excise duty exemption, customs duty should also be nil for equipment, the chamber has demanded. Sixth, service tax was imposed on clinical trials for testing of drugs and formulations this year at the rate of 12.24 per cent (including education cess) under the category `technical testing and analysis services'. Thus, it may be seen that service tax would be an additional high impact cost to the nascent Indian clinical trial industry. It is therefore suggested that CRO industry be exempted from the levy of service tax on all its activities including clinical trials to encourage it.

Seventh, as for biofuel and ethanol production, the Government may consider extending tax incentives such as excise and import duty exemption to promote use of bio-diesel and ethanol in auto fuels, the chamber suggested.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Web Application Development Web based Software Solution Web Application Deployment Web Application Solutions Web Application Software Development Web Application Deployment Web Application Programming Web Application Design and Development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions