Lok Sabha Question No. 4919 (UNSTARRED), answered on 2016-12-16
Subject: Tax Exemption
Ministry: FINANCE
Asked by: HARISHCHANDRA DEORAM CHAVAN, LAXMAN GILUWA, RAJESHBHAI NARANBHAI CHUDASAMA

(a) to (c ):

## Direct Tax

As  agriculture  income  is  exempt  from Income-tax u/s  10(1)  of  Income-tax Act,  1961 (Áct'), there is no rationale of providing any tax benefit on the same under the Act. Tax exemption/deductions  under  the  Act  to  industries  and  businesses  has  been  stipulated  under various provision of the Act, i.e 10A, 10B, 10AA, 80IA,  80IB etc. The conditions subject to which these tax benefits are available are also provided in the respective provisions.

No sector wise details are maintained. However, section wise details of revenue foregone is presented  before  parliament  along  with  Budget  every  year  in  the  form  of  document  titled, 'Statement of Revenue Impact of Tax Incentives under the Central Tax System'. The figures of Revenue Impact for last three years are as under:-

| Financial year      | Revenue impact of incentives (Rs. in Cr.)   |
|---------------------|---------------------------------------------|
| 2013-14             | 93,047                                      |
| 2014-15             | 1,18,593                                    |
| 2015-16 (Projected) | 1,28,639                                    |

## Government of India Ministry of Finance Department of Revenue

## LOK SABHA UNSTARRED QUESTION NO. 4919

TO BE ANSWERED ON FRIDAY, DECEMBER 16 2016 AGRAHAYANA 25, 1938 (SAKA)

## TAX EXEMPTION

## 4919: SHRI HARISHCHANDRA CHAVAN: SHRI LAXMAN GILUWA: SHRI RAJESHBHAI CHUDASAMA:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government extends subsidies, tax holidays concessions to various sectors including industry and agriculture;
- (b) if so, the details thereof and the amount of such exemptions during the last three years and the current year;
- (c) whether the tax concession/holidays are subject to certain conditions, if so, the details thereof;
- (d) the number of instances of violations of these conditions by the beneficiaries during the last three years and the current year; and
- (e) the action taken against the offenders in this regard?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SANTOSH KUMAR GANGWAR)

| 2016-17   | cannot be estimated   |
|-----------|-----------------------|

## Indirect Tax

At  present,  new  units  and units undertaking substantial expansion in specified States are eligible for excise duty exemption under the concerned Industrial Policies. The Revenue Impact of area based central excise duty exemptions applicable in the North Eastern States, Uttarakhand, Himachal Pradesh, Jammu & Kashmir during the last three financial years as under:-

| Financial year   | Revenue impact of incentives (Rs. in Cr.)   |
|------------------|---------------------------------------------|
| 2013-14          | 18,543                                      |
| 2014-15          | 19,978                                      |
| 2015-16          | 19,120                                      |
| 2016-17          | cannot be estimated                         |

The details of such excise duty exemption are at Annexure.

(d) & (e ):

Data relating to such violations is not maintained centrally. However, whenever any violation of prescribed eligibility condition(s) comes to the notice of the Government, necessary action is taken in accordance with the provisions of the Act.

*****

## Annexure  as  referred  to  in  reply  to  part  (a)  to  (c)  of  Unstarred  Question  No.  4919  to  be answered in Lok  Sabha on 16.12.2016.

| S. No.   | Area                                     | Notification number and date       | Notification number and date   | Cutoff date for setting up/substantial expansion of unit and start of commercial production   | Period of exemption                                             |
|----------|------------------------------------------|------------------------------------|--------------------------------|-----------------------------------------------------------------------------------------------|-----------------------------------------------------------------|
| (1)      | (2)                                      | (3)                                | (3)                            | (4)                                                                                           | (5)                                                             |
| 1.       | North East Region                        | 32/99-Central Excise 08.07.1999,   | dated                          | 31.3.2007                                                                                     | 10 years from the date of commencement of commercial production |
| 1.       | North East Region                        | 33/99- Central Excise 08.07.1999   | dated                          | 31.3.2007                                                                                     | 10 years from the date of commencement of commercial production |
| 2.       | State of Sikkim                          | 56/2003- Central Excise 25.06.2003 | dated                          | 31.3.2007                                                                                     | 10 years from the date of commencement of commercial production |
| 2.       | State of Sikkim                          | 71/2003-CE dated 09.09.2003        | 71/2003-CE dated 09.09.2003    | 31.3.2007                                                                                     | 10 years from the date of commencement of commercial production |
| 3.       | North East Region including Sikkim       | 20/2007- Central Excise 25.04.2007 | dated                          | 31.3.2017                                                                                     | 10 years from the date of commencement of commercial production |
| 4.       | State of Jammu & Kashmir                 | 56/2002- Central Excise 14.11.2002 | dated                          | 31.03.2016                                                                                    | 10 years from the date of commencement of commercial production |
| 4.       | State of Jammu & Kashmir                 | 57/2002- Central Excise 14.11.2002 | dated                          | 31.03.2016                                                                                    | 10 years from the date of commencement of commercial production |
| 4.       | State of Jammu & Kashmir                 | 01/2010 Central Excise 06.02.2010  | dated                          | No sunset clause                                                                              | 10 years from the date of commencement of commercial production |
| 5.       | States of Uttarakhand & Himachal Pradesh | 49/2003- Central Excise 10.06.2003 | dated                          | 31.3.2010                                                                                     | 10 years from the date of commencement of commercial production |
| 5.       | States of Uttarakhand & Himachal Pradesh | 50/2003- Central Excise dated      | 50/2003- Central Excise dated  | 31.3.2010                                                                                     | 10 years from the date of commencement of commercial production |

The  conditions  for  availing  the  said  central  excise  duty  exemptions  are  prescribed  in  the notifications mentioned in column (3) above.