Investor Presentaiton
A series of tax incentives easing operations
Incentives in the form of tax concessions, rebates to several domestic and foreign businesses
are driving ease of business
Introduction of multiple
tax benefits and
incentives to attract
foreign investment in
the manufacturing
sector.
• Introduction of a new
tax regime for domestic
manufacturing
companies in 2019:
newly set-up
manufacturing facilities
are eligible to pay tax at
a lower rate of 15 per
cent (excluding
surcharge and cess)."
Direct
Indirect
• Introduction of unified tax
structure in the form of GST.
• Various incentives provided
by Federal and State
Government to businesses
depending upon the
economic activity, industry
type, location, proposed
investment made in land,
building, equipment,
employment proposed to
be generated, etc.
• Benefits also available under
Foreign Trade Policy 2015-20
extended for few schemes,
which are subject to the
introduction of the new
Foreign Trade Policy.²
Specific incentives available
for setting up units in special
economic zones
Recent initiatives and relaxations
• With a view to encourage more start-ups,
the corporate concessional tax rate of
15 per cent is extended for a year, till
31 March 20243
• Several schemes introduced to promote
manufacturing in India such as MOOWR,
Production Linked Incentive Scheme for
several sectors. Further, the Government
also introduced RODTEP scheme to promote
exports of goods from India
• Several customs duty related changes have
been introduced to motivate domestic
manufacturers. The government has
introduced a moderate levy, while
exemptions for advanced machinery
currently not manufactured in India would
continue.4
The deadline for incorporation of startups
claiming tax holiday benefits has been
proposed to be extended by one year, i.e.,
from 31 March 2022 to 31 March 2023.4
• Faceless
customs
has been fully
established,
thereby
enhancing
ease of doing
business.5
1. Corporate tax rates slashed to 22% for domestic companies and 15% for new
domestic manufacturing companies and other fiscal reliefs, Ministry of finance,
September 2019
2.
All eyes on the new trade policy, Hindu Businessline, May 2022
3.
One year extensions: Concessional 15% corporate tax rate, Indian express,
February 2022
4. FM proposes to extend the period of incorporation of eligible start-ups by one
more year, The Hindu, February 2022
5. Customs Administration To Be Fully It Driven In Sezs, Pib, February 2022
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Doing business in India
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