Wednesday, December 14, 2011
1) You can avail 200% of the dedicated R & D expenditure both for revenue and capital u/s 35 of the Income Tax Act as deduction from your Taxable Income.
2) CAPEX (Capital Expenditure Incurred) would include all equipments irrespective of its age i.e. if it is less than 182 days, the benefit would be 200% and would not be prorated as is done Income Tax for charging of depreciation.
3) Revenue expenses as it is allowed 200% by the Tax authorities irrespective whether it was incurred on a failed project.
4) Revenue expenses viz. travel, salary, other incidental expenses etc. of the R & D personnel is eligible for 200%.
5) Custom Duty:
The Custom Duty varies from 5% to 165% whereas, if the asset is imported by R & D Department, the duty to be paid would be zero%
6) Central Excise:
Zero Excise Duty for 3 years, if your product has a patent (with certain conditions).
7) Financial Assistance:
Once you are an approved R & D Centre, you are eligible for Grants from the Government on Project to Project.
