Dated 18th February, 2020
The union cabinet has approved Production Linked Incentive (PLI) Scheme worth Rs. 12,195 crore for telecom manufacturing equipment including the next generation 5G technology. The core reason behind this decision is to reinforce it with “Made in India” products both for domestic market and exports and to offset the imports of telecom equipment worth more than Rs. 50,000 crore.
After the encouraging success of PLI related to mobile and component manufacturing, which was announced in April 2020 during the height of the pandemic, the government expects that this will scheme lead to Rs.2.4 trillion increment in productions of telecom equipments also in the country in next five years and will bring investment of more than Rs.3000 crore along with generation of direct and indirect employment. The scheme will be operational from 1st April 2021.
The scheme will be eligible subject to achievement of minimum threshold of cumulative incremental investment of Rs.100 crores and Rs.10 crore for MSME. Incentive would be applied on incremental sales of manufactured goods net of tax. (F.Y. 2019-20 shall be treated as the base year).
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
MSME |
7% |
7% |
6% |
5% |
4% |
Others |
6% |
6% |
5% |
5% |
4% |
BT Associates is a premier indirect tax consultant in kolkata, delivering high quality services to client in the area of indirect taxation.GST idea is a unit of BT Associates formed to share knowledge on stakeholders. We cover entire gamut from technical papers to recent development including IT under GST
BT Associates is a premier indirect tax consultant in kolkata, delivering high quality services to client in the area of indirect taxation.GST idea is a unit of BT Associates formed to share knowledge on stakeholders. We cover entire gamut from technical papers to recent development including IT under GST
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