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: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: VAT Audit :: form 3cd :: empanelment :: due date for vat payment
 
 
Direct Tax »
 ICDS provisions to prevail over judicial precedents: CBDT
 CBDT forms committee to check absconding I-T dept officers
 Central Board of Direct Taxes asks taxman to make all out efforts to recover arrears
 CBDT to honour honest taxpayers
 Startups in the docks over marked down valuation tax as March 31 nears
 CBDT asks taxman to make all out efforts to recover arrears
 CBDT chief prods taxmen to buck up, meet recovery target
 CBDT to hold review meeting on PMGKY, tax collection on Mar 17
 Monitor tax collection to meet target by Mar 31: CBDT to taxman
 File prosecution cases against shell companies: CBDT to taxmen
 Threefold jump in prosecution against tax offenders

Government rolls back tax incentive for wind farms
April, 03rd 2012

The government has ended the tax break given to wind energy projects much against the wishes of industry players who argued that without the popular incentive, capacity addition in the sector could fall to less than 1,000 MW as against the proposed 3,000 MW.

The income-tax department has issued a circular stating that wind farms commissioned in financial year 2012-13 would not get accelerated depreciation benefit that allowed them to write off investments sooner.

The circular states that the Central Board of Direct Taxes (CBDT) has amended the Income-Tax Rules, 1962, which means that beginning April 1, all new wind farms can only claim a standard depreciation rate of 15%.

"It is surprising that despite the Union Budget and finance bill laying specific emphasis on renewable energy, the policy change takes away one of the key pillars of India's success in this field. India needs power for growth, and this step unfortunately pushes the country in the wrong direction, increasing our dependence on conventional energy and imported fuels that cost our economy more every year," a spokesperson of wind turbine maker Suzlon Energy told ET.

Wind energy industry, which is expected to add another 15,000 MW in the next five years, thrived even as other sectors missed targets due to incentives such as generation-based sops to independent power producers and accelerated depreciation available to captive users.

Accelerated depreciation allows investors, mostly setting up capacity for captive use, to take advantage of up to 80% of the project cost if it's commissioned before September 30 of the financial year, or 40%, if the project is commissioned before March 31 of the financial year.

Independent power producers, who set up units to sell electricity to state distribution companies, typically opt for generation-based incentives that give them a benefit of Rs 0.50 for every unit of electricity.

"It is surprising that accelerated depreciation has been rolled back for wind farms while it would be available for solar projects. Historically, this benefit has driven capacity addition in the wind energy sector and this could be a step to curb the misuse of the benefit," said Hemal Zobalia, Partner, KPMG India.

According to industry experts, in the past few years, almost 70% of the new wind capacity has been added by entities under the 'accelerated depreciation' route, which is why equipment makers like Suzlon Energy, Spain's Gamesa Corp, and Denmark's Vestas Wind Systems have been seeking its extension.

Ramesh Kymal, chairman and managing director of the Indian subsidiary of Spain's Gamesa, had earlier told ET, "Rolling back the incentives would be catastrophic for wind turbine makers who have made huge investments in building capacities in India. Global wind market is going through a slowdown, and if domestic orders dry up, then we would be forced to run under capacity."

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-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