GOVERNMENT OF RAJASHTAN

FINANCE DEPARTMENT

(TAX DIVISION)

No:F.4(18)FD/Tax-Div./2001-N1 December 1, 2004

The Government launched the Rajasthan Investment Promotion Scheme 2003 vide this Department's order No. F. 4(18) FD/Tax-Div/2001 dated 28/7/2003 (amended from time to time). It has been brought to the notice of the Government that there are some issues relating to interpretation of certain clauses of the Scheme. To bring in more clarify the Government clarifies the following issues regarding the Rajasthan Investment Promotion Policy, 2003 (hereinafter referred to as the Scheme)

CLARIFICATIONS

1. Representations from the Industries Associations and references from Industries Department have been received regarding interpretation of clause 3 and clause 5 of the Scheme. After due examination, it is clarified that all investment projects where the commencement of commercial production/operation falls within the operative period of the Scheme. However, no refunds shall be made where any duty/fee tax/charges have already been deposited.

2. the Scheme provides that all benefits shall be available only on new investment. It is further clarified that the cases of purchase of land in resale in RIICO areas, for the purposes of industrialization, shall also be treated as under the category of new investment, provided that conditions are fulfilled.

3. In pursuance of the clause 4(a) of the Scheme it is clarified regarding this Department's order No. F 4(18) FD /Tax-Div/2001 dated 12.1.2004 that the said order shall be treated as being effective from 1.7.2003, however, no refunds shall be made if any fee/tax/duty/charges has been deposited by the investor with regards to their investment projects.

By order

(Ajitabh Sharma)

Deputy Secretary to the Govt.