Tuff Benefit and SHIS

[harkirat singh]

Dear Sir,

We have taken Tuff benefit from Ministry of Textiles. TUFF was granted to our company in 2008-2009. We have purchase indigenous Machines of approx. Rupees 1 crores. We have taken loan from Bank for Rs. 1 crore to purchase of machinery. On this loan, we are paying interest of 13 percent at reducing balance to bank every year, terms loan is for 7 years. From Ministry of Textiles we are getting 5 percent subsidy on interest amount every year i.e., we are getting interest subsidy for the period 01/04/2008 to 31/03/2014.

 

We have also received capital subsidy at the rate of 10 percent of machine cost under TUF Scheme, During the year 2008-09.

Kindly advice can we apply for SHIS for Year 2010-11, 2011-12 & 2012-2013.

 

 

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

AI Summary

Subsidy eligibility: whether prior textile interest and capital subsidies preclude applying for SHIS for later years. Company received a 5% interest subsidy on a seven year reducing balance bank term loan and a 10% capital subsidy for machinery under the textile scheme for the 2008-2014 period. The operative question is whether those prior interest and capital subsidies affect eligibility to apply for SHIS for 2010 11, 2011 12 and 2012 13.