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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« News Headlines »
 Notification No.93/2018 - Customs (N.T.) Central Board Of Indirect Taxes And Customs
 Now don’t forget to file your income tax return Paid TDS?
 National Financial Reporting Authority Rules, 2018
 Jindal Metal Co. Vs. Principal Commissioner Of Income Tax, Delhi-21
 Goods And Service Tax (Gst) Concept & Status As On 1st November, 2018
 Notification No. 91 /2018-Customs (N.T.) Central Board of Indirect Taxes and Customs
 Top 5 must-knows for education loan tax deduction
 Notification No.90/2018 - Customs (N.T.) Central Board Of Indirect Taxes And Customs
 The Central Goods And Services Tax (Amendment) Bill, 2018
 New Forms for making an application under section 197 and/or section 206C of the Income-tax Act, 1961
 I-T dept proposes online filing of tax exemption application

Finmin denies sops to Fab City semiconductor project
September, 25th 2006
The much-touted Fab City project in Hyderabad supposed to be a launching pad for the semiconductor industry in India is finding it tough to cross the finance ministry hurdle. Apprehensive of revenue loss, the ministry has rejected sops proposed by the information technology department (DIT) and the Andhra Pradesh government to attract multinational chip makers to India. With such roadblocks coming its way, the proposed semiconductor policy may not seem attractive enough for the likes of AMD, Intel and others who were coming together for the SemIndia project in Andhra Pradesh. The IT department had pitched for a host of incentives for the chip makers, including equity participation of 26%, interest-free loan of up to Rs 400 crore for five years, 10-year interest subsidy and 10-year income tax holiday. Tax credit of up to 30% of investment value spread over three years and sops at par with special economic zones (SEZs) were also discussed. The proposed sops, it is estimated, would cost over Rs 50,000 crore in the next 15 years. Besides, the state government is also looking at various other incentives like land at concessional rates. As per the finance ministry estimate, the entire spectrum of chip-making and the average decline in price, year-on-year basis, ranged from 4%-5%. The internal rate of return, keeping the price decline in view, is estimated to be between 130-150% over a 15-year period. Thus, there was no logic in incentivising a project which was intrinsically viable. Also, if the project gets SEZ status, it would avail the incentives that SEZ exporters are eligible for. Earlier, the finance ministry had suggested capping of incentives at 15% of the total cost of the project like its done in Israel. But the DIT and the Andhra Pradesh government had been pressing for sops, and they had taken it up with the prime ministers office (PMO). The PMO, then, asked the DIT and the MoF to resolve their differences and reach a common ground. However, with the finance ministry hardening its stance, the semiconductor policy may find it difficult to see the light of the day.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

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