G/SCM/N/220/IND/Suppl.1  
 
14 November 2014  
(14-6681)  Page: 1/3  
Committee on Subsidies and Countervailing Measures  Original: English  
 
  SUBSIDIES 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF 
THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON 
SUBSIDIES AND COUNTERVAILING MEASURES 
INDIA 
Supplement 
The following communication, dated 24 October 2014, is being circulated at the request of the 
Delegation of India.  
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 The following notification constitutes the Government of Republic of India's new notification of 
information on programmes granted or maintained at the central government level in India. In 
general, the period to which the following information applies is for the Financial Years 2009-10, 2010-11 and 2011-12.  
 
In so far as the notification obligation is a transparency-oriented provision that, pursuant to Article 25.7 of the Agreement, carries no legal weight as to the actual identification or measurement of a subsidy, its actionability status, or its trade effects, India has included certain 
activities in this notification which arguably are not (or are not always) "specific subsidies" within 
the meaning of the Agreement.  
1. Title of the subsidy programme 
 Preferential tax policies for certain enterprises. 
 
2. Period covered by the notification. The period to be covered by the notification 
should be the most recently completed calend ar or fiscal year. In the latter case, the 
start and end dates of the fiscal year should be specified 
 
i. 1 April 2009 to 31 March 2010; 
ii. 1 April 2010 to 31 March 2011; 
iii. 1 April 2011 to 31 March 2012. 
3. Policy objective and/or purpose of the subsidy 
 
a. Generation of additional economic activity; 
b. Promotion of exports of goods; 
c. Promotion of investment from domestic and foreign sources; 
d. Creation of employment opportunities; 
e. Development of infrastructure facilities. G/SCM/N/220/IND/Suppl.1 
 
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  4. Background and authority for the subsidy (including identification of the 
legislation under which it is granted)  The subsidy is authorised vide legislation (i.e., Income Tax Act, 1961) to grant these concessions 
under Sections 10A, 10AA, 10B, 10BA, 80-IAB and 115- O of the Act, administered by the Ministry 
of Finance.  
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.) 
 Preferential tax treatment.  
6. To whom and how the subsidy is provided (whether to producers, to exporters, or 
others; through what mechanism, whether a fi xed or fluctuating amount per unit; if the 
latter, how determined) 
 
a. Exemption available to units in Special Economic Zones (SEZs) and Export Oriented 
Undertaking 
i. Deduction from the total income of 100% of profits and gains derived by an 
undertaking from the export of articles for a period of 10 consecutive assessment years under Section 10 A of the Income Tax Act, 1961, till 31 March 2012. 
(For the financial years 2009-10 to 2011-12) 
 
ii. Deduction from the total income of 100% of profits and gains derived by a unit 
located in an SEZ from the export of articles for the first 5 consecutive assessment 
years, of 50% for further 5 assessment years and thereafter of 50% of the ploughed 
back export profit for next 5 years under Section 10AA of the Income Tax Act, 1961. 
(For the financial years 2009-10 to 2011-12) 
 
iii. Deduction of 100% of profits and gain s derived by 100% Export Oriented 
Undertaking from the export of articles from the total income for a period of 10 consecutive assessment years under Section 10B of the Income Tax Act, 1961, 
till 31 March 2011. 
(For the financial years 2009-10 to 2010-11) 
 
iv. Deduction of 100% of profits and gains derived by an undertaking from the export of 
eligible articles or things (i.e., all hand-made articles or things, which are of artistic value and which requires the use of wood as the main raw material) from the total 
income under Section 10BA of the Income Tax Act, 1961, till 31 March 2012. 
(For the financial years 2009-10 to 2011-12) 
 
b. Exemption available to the Developers of SEZs: 
Deduction of 100% of profits and gains derive d by an undertaking from the business of 
development of a Special Economic Zone (SEZ), notified on or after 1 April 2005 from the total 
income for any ten consecutive assessment years out of fifteen years beginning from the year in 
which the SEZ has been notified by the Central Government under Section 80-IAB of the Income 
Tax Act.  
(For the financial years 2009-10 to 2011-12) 
 
c. Exemption from dividend distribution tax under Section 115-O of the Income Tax Act, 
1961 in respect of the total income of an undertaking or enterprise engaged in 
developing or developing and operating or developing, operating and maintaining a 
Special Economic Zone. 
(For the financial years 2009-10 to 2011-12) 
 G/SCM/N/220/IND/Suppl.1 
 
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  7. Subsidy per unit or in cases where this is not possible, the total amount or the 
annual amount budgeted for that subsidy (ind icating, if possible, the average subsidy 
per unit in the previous year). Where provis ion of per unit subsidy information (for the 
year covered by the notification, for the prev ious year, or both) is not possible, a full 
explanation 
 Data not available. 
 
8. For the information cited in items 3 to 7 above, the notification does not 
necessarily have to have an independent he ading corresponding to each item, and may 
provide information on multiple items in one heading (e.g. provide information on 
items 3 and 4 under one heading). In this ca se, the notification must clearly specify 
what items are covered by which heading  
As mentioned in Item No. 6. 
 9. Duration of the subsidy and/or any other time limits attached to it, including date 
of inception/commencement 
 As mentioned in Item No. 6. The facility of Section 10B to the Units operating under Export Oriented Unit (EOU) Scheme stands withdrawn for exports w.e.f. 1-04-2011. The concession of 
Minimum Alternate Tax (MAT) under section 115JB of Income Tax Act, 1961 and Dividend 
Distribution Tax (DDT) under Section 115-O under Income Tax Act, 1961 have been withdrawn for SEZ w.e.f. 1-04-2012.  
 
10. Statistical data permitting an assessm ent of the trade effects of the subsidy  
 
Data not available. 
  
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