Act No. 18 of 2000
3rd July, 2000
AN ACT To make provisions for incentives for tiny, small scale, medium scale and large scale industries set up within the State of Sikkim. Whereas it is expedient to make provisions for incentives for tiny, smallscale , medium scale and large scale industries set up within the State of Sikkim. Be it enacted by the Legislature of Sikkim in the Fifty –first year of the Republic of India as follows:-
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An industrial unit consuming power upto Rs, 50,000.00 per annum shall be eligible for 50% reimbursement.
Industrial unit shall be exempted from payment of security deposit or earnest money in respect of tenders or Quotations for purchas of stores by Government Department.
The industrial unit shall obtain Indian Standard Institute / international Standard Organization Certificate inrespect of their products to compete at the State and National Level and to ensure product qualityand for suchthe State Government shall reimburse 100% of the expenditure incurred on the registration fees, testing fees, annual licence fees, purchase of testing equipment provided the maximum amount payable byway of reimbursement shallnot exceed Rs. 25,000,.00
The amount spend by an industrial unit in obtaining a registration withpromotion Council, Indian Standard Institution, Commodity Board, Chamber of Commerce , etc, shall be reimbursed to the unit, subject to a maximum of Rs. 10,000.00 (Rupees ten thousand) or the actual registrationfee, whichever is less.
Exemption under Notification No. 2/TIC dated the 16th February , 1974 will continue.
(1) The benefits , concessions or exemptions as conferred under this Act shallbe for such period as may be notified by the sanctioning authority.
(2) The sanctioning authoritymay with the approval of the Government from time to time, notify such additional benefits , concessions or exemptions applicable to industrial units as maybe considered desirable.
If any difficulty arises in giving effect to the provisions of this Act , the Government ay by order not in consistent with the provisions of this Act, remove suchdifficulties.
In the said Act, after section 6, the following sections shall be inserted, namely:-
Subsidy on State 6 A. Capital Investment
An investment subsidy on the total investment shall be provided on a graded level to the industry. It will be available to both new as well as those carrying out expansion, diversification or modernization activities.
| Artisan and Tiny Scale Units | Small Scale Units | Medium/Large Scale Units |
|---|---|---|
| a) 15 percent of total capital investment in plant and machinery subject to a maximum of Rs. 30,000/- (Rupees thirty thousand). | a) 10 percent of total capital investment in plant and machinery, subject to a maximum of Rs.5 lacs. ( Rupees five lakhs). | a) 5 percent of total capital investment in plant and machinery, subject to a maximum of Rs. 10 lacs (Rupees ten lakhs). |
| b) 30 percent of total capital investment in plant and machinery subject to a maximum of Rs. 60,0 |
In the said Act, for the existing section 8, the following section shall be substituted, namely:-
(1) There shall be 100% reimbursement of power bill for an industrial unit consuming up to Rs.50,000/- (Rupees fifty thousand) per annum. The reimbursement above Rs. 50,000 /- (Rupees fifty thousand) shall be to the extent of Rs. 50,000/- (Rupees fifty thousand) plus 25 percent of the balance of actual payment subject to a maximum of Rs. 2 lakhs (Rupees two lakhs).
(2) The State Government shall grant a subsidy of 30 percent power tariff to industrial units coming up in Growth Centre in Thrust Areas.
(3) 50% of the cost incurred on linking of power from the main line to the factory shed subject to a maximum ceiling of Rs. 50,000/- (Rupees fifty thousand)
(4) Power tariff to the Industries shall be levied at the cost of production as and when available.
In the said Act, after section 12, the following section shall be inserted, namely:-
(1) The State Sales Taxes shall be exempted for a period of 10 (ten) years from the date of commencement of actual Commercial Production. However, for the units set up in the thrust areas, the exemption period will be 12 (twelve) years.
(1) This Act may be called the Sikkim Industrial Promotion and Incentive (Amendment) Act, 2007.
(2) It shall come into force at once.
In the Sikkim Industrial Promotion and Incentive Act 2000 ( hereinafter referred to as the said Act ) Section 6 A shall be renumbered as sub-section (1) of that section and after that sub-section (1) as so renumbered, the following sub-section shall be inserted, namely :-
(2) "Where an Industrial unit already enjoying a Central Investment Subsidy" shall not be eligible to claim State Investment Subsidy under the Act.
In the said Act, in sub-section (2) of Section 8, after the words " Thrust Areas", the words and figure "subject to maximum of Rs.2 lakhs (Rupees two lakhs) shall be inserted.
In the said Act, for the existing Section 12 A the following section shall be substituted, namely:-
"12A(1) "The Value Added Tax (VAT) payable by an Industrial Unit shall be deferred for a period of 10 (ten) years and for a period of 12 (twelve) years for notified thrust industries from the date of commencement of actual commercial production. These industrial units will be permitted to collect VAT and roll it back as working capital for the entire period of deferment as the case may be. At the end of the deferment period, the VAT collected will have to be remitted to the Government Account in four half yearly installments. In case of those units which are already enjoying the sales tax exemption the same will be converted into VAT deferral scheme as above for the remaining periods of their exemption as the case may be.""
(2) The levy of State Excise Duty and Sales Tax on units manufacturing alcoholic/beer products shall be governed by such notification as may be issu
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