Expenditure on Skill Development Project - (New) Section 47(1)(b) / (Old) Section 35CCD

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....the assessee claims and is allowed a deduction under this section: • The same expenditure cannot be claimed again under any other section of the tax law. • This restriction applies not just in the same year, but also in future years. Procedure for approval of skill development projects under section 47(1)(b) [ Rule 39 ] Eligibility for Project • Only eligible companies can apply. • The project must be conducted: • In a separate facility, and • Within a training institute. Process of Filling Application • The eligible company shall make an application in Form No. 22 to the National Council for Vocational Education and Training for notification of such project under section 47(1)(b). • A copy of the application shall also be sent to the Commissioner of Income-tax having jurisdiction over the applicant, along with an acknowledgment receipt as evidence of furnishing of application to the National Council. • The application shall be accompanied by- • (a) a letter of concurrence from the training insti....

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.... the Board shall within two months from the end of the quarter in which it receives the report from the National Council, • issue a notification in Form No. 23 under section 47(1)(b), specifying the project, subject to conditions mentioned in rule 40 or such other conditions, as it may deem fit, • to be effective for such period not exceeding three tax years. • If the National Council recommends the rejection of the application, • the Board shall pass an order rejecting the application. Extension of Project  • If the Board is satisfied with the activities of the project during the period of notification, it may notify the said project for a further period in consultation with the National Council. Consequences of Non Compliance • If the Board is satisfied that-- • (a) the eligible company or the training institute has • ceased its activities, or • its activities are not genuine; or • (b) that its activities are not being carried out in accordance with-- • (i) all or any of the relevant provisions of the A....

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....me under section 263(1), Consequences of Non compliance • If it is found by the Commissioner of Income-tax that- • the company • has not maintained separate books of account for the project or • has not got such books of account audited by an accountant in accordance with sub-rule (1); or • the company has not furnished the documents referred to in sub-rule (5); or • the company has ceased to carry out activities of the project; or • the activities of the project of the company are not genuine; or • the activities of the project of the company are not being carried out in accordance with the relevant provisions of the Act, rules, or • the conditions subject to which the notification was issued under rule 39, • The Commissioner of Income Tax shall, after making appropriate inquiries, furnish a report on the circumstances referred above to the Board for appropriate action under rule 39(14). • If the National Council for Vocational Education and Training is not satisfied about the genuineness of the activities of the noti....

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.... including hydrocarbons; • 23. packaging and warehousing, including both ambient temperature storage and cold storage, operation of internal container depots and container freight stations; • 24. port and maritime services such as dredging, piloting, tug boat operations, shipbuilding, ship scrapping and bunkering; • 25. power sector services, including those required for erection or installation or maintenance of equipment or towers, etc. in generation, transmission or distribution sector projects; • 26. private security, including guards, supervisors, installation and maintenance of security equipment etc.; • 27. refrigeration and air-conditioning; • 28. repair and maintenance services, including installation and servicing of household goods or white goods; • 29. retail marketing, including shop floor assistants or merchandisers; • 30. telecom services, including erection and maintenance of towers; and • 31. travel and tourism, including guides or ticketing or sales or cab drives; • "State Council for Vocational Training" means a State Council for Train....

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....ng jurisdiction over the case, • accompanied by the acknowledgement receipt as evidence of having furnished the application form in duplicate to the NSDA. • The application shall be accompanied by the following, namely:- • (a) detailed note on the skill development project to be undertaken by the eligible company; • (b) details of the expenditure expected to be incurred on the project and expected date of completion of the project; and • (c) a letter of concurrence from the training institute in which the skill development project is to be undertaken. • The Meaning of National Skill Development Agency (NSDA) define under rule 6AAH(v). Process of Approval or Rejection of Application • If any defect is noticed in the application or if any relevant document is not attached thereto, • the NSDA shall before the expiry of one month from the date of receipt of the application in its office, intimate the defect to the applicant for its rectification. • The applicant shall remove the defect • within a period of fifteen days from the date of such inti....

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....• If the CBDT is satisfied with the activities of the skill development project during the period of notification, it may notify the said project for a further period in consultation with the NSDA. Communication of any order approval or Invalidating or Rejection or rescinding the notification • A copy of the notification issued shall be sent to • the applicant, • the NSDA, • the training institute • the Commissioner of Income-tax, • the Director of Income-tax. Power to withdraw approval • The CBDT may rescind the notification issued at any time, if it is satisfied that the eligible company or the training institute • has ceased its activities or • its activities are not genuine or • the activities of the skill development project are not being carried out in accordance with all or any of the relevant provisions of the Act or this rule or rule 6AAG or • the conditions subject to which the notification was issued. • An order rescinding the notification shall not be passed unless the applicant has been given an opp....