Benefits available for "In-house R&D Centres" of companies are -.
- Super-Deduction(Weighted Deduction) of the total expenditure whether Revenue or Capital in nature - Weighted Deduction in Income Tax for 5 years & more.
- Duty free import of specified goods (Analytical & specialty equipments)
- Commercial R&D companies eligible for 10yrs. tax holiday
- Other Benefits – Excise duty waiver for 3 yrs., Custom & Excise duty exemption, state subsidy etc.
Financial and other incentives To R & D Centre:
Write off of revenue expenditure on R&D ;
Write off of capital expenditure on R&D in the year the expenditure incurred;
Super-Deduction(Weighted Deduction)to the sponsor of sponsored research programmes in universities, IIT’s and approved national laboratories.
Super-Deduction(Weighted Deduction). on R&D expenditure incurred in the approved in-house R&D centre of biotechnology or in the business of manufacture or production of any drugs. Pharmaceuticals, electronic equipments, computers, telecommunication equipments, chemicals, aircrafts and helicopters, automobiles including automobile components, or, any other article thing notified. Expenditure on scientific research in relation to drugs and pharmaceuticals shall include expenditure incurred on clinical drug trials, obtaining approvals from any regulatory authority under any Central, State or Provincial Act and filling an application for a patent.
The Ministries/ Govt. Depts. involved in giving approvals are:
Ministry of Finance
Ministry of Chemicals
Ministry of Commerce
Ministry of Science and Technology
Ministry of Heavy Industries
Ministry of Shipping, Road Transport and Highways
Ministry of Small Scale Industries
Ministry of Statistics and Programme Implementation
Ministry of Steel
Ministry of Environment
Department of Industrial Development
Department of Electronics
Department of Telecommunication
Department of Bio-Technology
Department of Food Processing
Indian Council of Agriculture Research
Council of Scientific & Industrial Research
Indian Council of Medical Research
Defence Research & Development Organisation
Department of Atomic Energy
Department of Space
Tax holiday for ten consecutive assessment years beginning from initial assessment year companies, whose sole object is The Scientific and Industrial Research and Development , and who are approved after the 31st day of March 2000.
Income tax exemption @ Super-Deduction(Weighted Deduction)to Donations made to approved Scientific and Industrial Research Organisations.
Accelerated depreciation allowance for investment on plant and machinery made on the basis of indigenous technology.
Customs duty exemption to public funded R&D institutions and privately funded scientific and industrial research organisations, both for capital equipment and consumables needed for R&D
Excise duty exemption to duty exemption for 3 years on goods designed and developed by a wholly owned Indian company and patented in any two countries out of India , USA, Japan and any one country of European Union
Exemption from customs duty on imports made by industry for R&D projects.
Exemption from price Control of Drugs (Prices Control) Order for drugs, which have been developed indigenously or produced through a process, developed through indigenous R&D.
Pharmaceutical reference standards are allowed to be imported duty free.
Goods specified in List 28 (Comprising of analytical and specialty equipment)for use in
pharmaceutical and biotechnology sector are allowed to be imported duty free meeting certain condition.
Supports in the form of Grants for industrial R&D projects.
Support in the form of loans/Grants for industrial R&D. Support to industry for R & D through sector specific programmes of scientific and economic ministries.
Association of industry with the national R&D programmes in area of Atomic Energy Space and Defence research.
Promotion of technology transfer from national laboratories and nationally funded R&D Programmers to industry through public sector organisations.
Financial support to meet the developmental expenditure for -
R&D Project for development of a new/improved product
R&D Project for development of a new/improved process
R&D Project for development of Capital Goods for Indian/Export market
R&D Project for absorption of imported technology with know-how studies