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2019 (2) TMI 1781
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....incurring substantial part of its expenses towards development which distinguishes it from other companies as the benefit of the expenditure would accrue for many years. 3. The DRP erred in directing to provide working capital adjustment without appreciating the fact that when companies have multiple segments providing working capital adjustment would result in factually incorrect results and that it would not be feasible to accept the figures at face value as appearing in the balance sheet in the absence of precise characterization as there is no uniformity in respect of the definition of receivables and payables as these are categorized differently by each company. 4. The DRP erred in directing to provide working capital adjustment without appreciating the fact that according to the OECD commentary working capital benefit cannot be given automatically but only in situations where there is a greater chance of increasing the comparability levels. 5. The DRP erred in directing to provide working capital adjustment without appreciating the fact that in the absence of exact details of debtors, creditors and inventory which are the sin-qua-non for working cap....
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....i Order in the case of Enable Exports Pvt. Ltd (ITA No. 1072 of 2011) relied upon by the CIT (A), the Hon'ble Court has laid emphasis on CBDT circular clarifying deduction u/s 10B wherein it is mentioned that the approval granted by the Development Commissioner in the case Of an 1000/0 EOIJ will be considered valid, once such an approval is ratified by the BOA for EOLJ Scheme and in the instant case of the assessee company, since no such ratification was received during the F.Y under consideration, the assessee company was not eligible to claim deduction u/s 10B w.r.t. F. Y. 2010-11. Grounds of appeal raised by the Assessee for AY 2009-10 : Transfer pricing 2. That on the facts and in circumstances of this case and in law, the learned AO and the learned Panel erred in not following the ruling of the Honble Income Tax Appellate Tribunal ("ITAE) in the case of Apotex Research Private Limited (ITA No.918/Bang/2011) for Assessment Year ("AV) 2007-08, which squarely applies to the Appellant's matter. 3. That on the facts and in circumstances of this case and in law, the learned AO and the learned Panel erred in upholding the learned Transfer Pricing Offic....
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....s case and in law, the learned AO and the learned Panel erred in holding that the Appellant has made an illegal and undue claim under section 10B of the Act whereas, the amount claimed by the assessee is supported by the computation methodolog,' provided as per the provisions of law. 5.3. That on the facts and in circumstances of this case and in law, the learned AO and learned Panel erred in concluding that the Appellant's claim of deduction under section 10B of the Act is not appropriately supported by the Accountant's Report in Form 56G. 5.4. Without prejudice to the above, the learned AO and learned Panel erred in disallowing the deduction under section 10B of the Act on the manufacturing services carried out by the Appellant. 6. That on the facts and in circumstances of this case and in law, the learned AO and learned Panel erred in holding out that deduction under section 10B of the Act is to be allowed after setting off the brought forward losses and unabsorbed depreciation. 7. That on the facts and in circumstances of this case and in law, the learned AO and the learned Panel erred in consequently levying interest under sectio....
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.... & D activities, which are a pre-requisite for undertaking manufacturing of pharmaceutical products on behalf of Apotex Pharmachem Inc. The range of activities performed by APIPL include development of synthetic chemical processes in the field of APIs, development and preparation of Drug Master Filed (DMF's), and analytical services like stability studies, validation studies, analytical method development. Hence, the assessee rendered R & D services in this segment. 04. The TPO determined the TP adjustment u/s.92C as under : The arithmetic mean of the Profit Level Indicators is taken as the arms length margin. Based on this the arms length price of the research and development services rendered by the taxpayer is computed as under: Arithmetic mean PLI 28.35% on cost Operating Cost Rs. 292887269 Arms Length Margin 28.35% of the Operating Cost Arms Length Price (ALP) @128.35% of operating cost Rs. 375920809/- Price Received vis-å-vis the Arms Length Price: The price charged by the tax payer to its Associated Enterprises is compared to the Arms Length price as under. Arms Length Price @128.71% of operating cost Rs. 375920....
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.... comparables for the purpose of computing the ALP, therefore, they have to be excluded from the list of comparables. The relevant observations of the Tribunal for AY 2008-09 with respect to Celestial Biolabs Ltd., IDC India Ltd. and Oil field Instrumentations (India) Ltd. are extracted hereunder:- "15. It can thus be seen from the above that the activities of the assessee in the present case and that of Tevapharm Pvt. Ltd. are identical, i.e., both the companies carried out analytical research and stability testing services to its AEs. In the case of Tevapharm Pvt. Ltd., the TPO had selected Engineering India ltd., IDC India Ltd., Oil Field Instrumentation, Celestial Labs and Mindtree Ltd., as comparable. The Tribunal examined the comparability of these companies to a company engaged in contract research & development and came to the following conclusion:- "1. ......... 3. IDC (India) Limited (IDC): IDC primarily undertakes research and survey services for products. IDC research documents cover areas like Enterprise Management Applications, Broadband, Internet and eBusiness, Mobile Usage, IT Service Exports and Continuous Market Review of Computing and Pe....
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.... mainly for geological operations for oil, gas and mineral exploration. Also as per the website of Oil Field, Oil Field provides Rig Instrumentation and services for drilling rigs like pressure indicators, diaphragms, drillers console, recorder, etc. It also provides accurate, timely and reliable drilling data. The website information also says that Oil Field's real time gas evaluation systems offer considerable accuracy that help in taking critical on site drilling decisions. It is rugged and field proven equipment, used in Exploration, Production and Refinery Sectors. Oil field provides Gas Detection like Hydrocarbon Detector, Carbon Dioxide Detector, Hydrogen Sulphide Detector, Higher Hydrocarbons Detector, Nitrogen Detector, Sulphur Dioxide Detector, Oxygen Detector, Carbon Monoxide Detector, Hydrogen Detector, etc. The extracts of the functional profile of Oil Field from its website as given above and the information in the annual report of Oil Field on the nature of assets employed such as outer shell of mud logging units, sensors and other instruments clearly demonstrate the disparity between Oil Field's and Assessee's operations. As discussed earlier the functional....
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....irectors report which reads as follows: "The Company as developed a de novo drug design tool "CELSUITE" to drug discovery in, finding the lead molecules for drug discovery and protected the IPR by filing under the copy if right/patent act. (Apprised and funded by Department of Science and Technology New Delhi) Based on our in silico expertise (applying bio-informatics tools). The Company has developed a molecule to treat Leucoderma and multiple cancer and protected the IPR by filing the patent. The patent details have been discussed with Patent officials and the response is very favorable. The cloning and purification under wet lab procedures are under progress with our collaborative Institute, Department of Microbiology, Osmania University, Hyderabad. In the industrial biotechnology area, the company has signed the Technology transfer agreement with IMTECH CHANDIGARH (a very reputed CSIR organization) to manufacture and market initially two Enzymes, Alpha Amylase and Alkaline Protease in India and overseas. The company is planning to set up a biotechnology facility to manufacture industrial enzymes. This facility would also include the ....
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....list of comparables. 08. Per contra, the Ld. DR had drawn our attention to the expenses at page 683, where the total expenditure incurred by the assessee was mentioned in raw material. The Ld. DR in the written submissions has mentioned as under : During the hearing of the above appeals on 8/01/2019, Hon'ble Bench directed the undersigned to submit a note on the specific arguments made on behalf of the revenue in the course of hearing with regard to admissibility of deduction u/s 10B in respect of profits derived from R&D services purportedly carried out by the above assessee from its SEZ unit and the relevant provisions of the SEZ Act. In compliance thereto, the following submissions are made for kind consideration of the Hon'ble Bench : 1) The learned AR heavily relied on the jurisdictional ITAT's decision in the case of DClT vs Syngene International Ltd [2015] 64 taxmann.com 222 (Bangalore-Trib.) to argue that the assessee is eligible for deduction u/s 10B which the AC has denied for various reasons. The undersigned, besides highlighting the reasons elaborated by the AO in the assessment order for denial of deduction u/s 10 and making arguments i....
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....e Development Commissioner, Cochin SEZ. It is important to note that in the original letter of approval dated 16.04.2004 issued by DC, Cochin SEZ, the items of manufacture approved were Chloro Benzene and 3 other items whereas the item of manufacture was amended vide letter dated 31.08.2004 as Research & Development centre with an associated production facility of Chloro Benzene and other chemicals. Here it is relevant to point out that as per provisions of section 15 of the SEZ Act 2005, any unit intending to set up the unit in a SEZ shall submit a proposal to the concerned DC who shall put it up to the Approval Committee and upon approval by the Committee, grant a Letter of approval specifying the authorised operations. As per rule 19 of SEZ Rules also, the DC shall specify the items of manufacture or particulars of service activity. The Letter of Approval assumes significance because any person running an approved unit within SEZ can only conduct authorised operations viz., items of manufacture specified therein so as avail the benefits under various acts. Viewed from this angle, the Letter of Approval dated 31.08.2004 cannot be interpreted to mean that approval was given for a ....
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.... therefore cannot be compared with that of the assessee. 09. We have heard the rival contentions and perused the material on record. Though this company was considered by the Tribunal in the case of sister concern (supra), but the finding recorded by the Tribunal in the said case was on the basis of the order passed by the Tribunal for the earlier assessment year in the case of the assessee. If we examine the expenditure incurred by Celestial Labs Ltd, on research and development in this year then it is clear that the R & D expenditure at a percentage of the total turnover was only 4.40% and the balance was on account of various heads mentioned under the expenditure mentioned at page 683 of the paper book. Moreover if we look into the profile of Celestial Labs Ltd, then it is clear that this company is into development of molecule to treat Leucoderma and was in the process of filing IPR for the said research. Thus this company is not only into R & D, but is also into development of various IPRs, whereas the assessee is only into R & D of pharmaceutical products and is not into development of IPRs on research done by it. We also find that this company Celestial Labs Ltd, has also....
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....uthorities. 12. We have heard the rival contentions and perused the material on record. The functions performed by Oil Field Instrumentation (India) Ltd, during the current year continues to be the same as it was doing in the earlier year 2008-09, which was so mentioned by the Tribunal, though in the matter of sister concern (supra). As there is neither change in profile or the functions, therefore following the decision of the coordinate bench in the matter of the sister concern of the assessee, we direct the TPO to exclude this company from the list of comparables. 13. Ground no.2 of the Revenue appeal pertains to the inclusion of Max Neeman Medical Intl. Ltd. It was the case of the Ld. DR that the TPO has excluded this comparable on the ground that this company has been incurring loss at the enterprise loss and is a consistent loss making company. Therefore it was submitted that the DRP had erred in taking it on the basis of the segmental results / profit shown by this company for one year. 14. Per contra, the Ld. AR had submitted that there is no reason to exclude this company as the finding recorded by the TPO is incorrect as even at the enterprise level this comparab....
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....47.46 lacs after claiming deduction u/s.10B of the Act amounting to Rs. 103.13 lacs in respect of its manufacturing activities. Further the assessee also recorded income from other sources (consisting of interest on deposits) amounting to INR 19.31 lacs. The net taxable income of the Company was arrived at INR 17.93 lacs after set-off of brought forward losses. Subsequently, the Appellant revised its return of income for FY 2008-09 on September 27, 2010. In the return of income filed, the Appellant declared a net income from business and profession of INR 526.33 lacs after claiming deduction under section 10B of the Act amounting to INR 119.45 lacs for both the manufacturing activities and the R&D activities. Further, the Appellant also recorded income f am other sources (consisting of interest on deposits) amounting to INR 19.31 lacs. The net taxable income of the Appellant was arrived at INR 38.58 lacs after set-off of brought forward losses. In the revised return filed by the Appellant, the deduction under 10B of the Act was calculated by taking 'manufacturing' and 'R&D' activities as separate business undertakings. The deduction was calculated by applying the fo....
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....ssioner w.r.t. R&D activities; 23. The AO in the draft assessment order had denied the benefit of 10B and the reason recorded by the AO were mentioned in para 5.7 to 5.9 of the order, which is as under : 5.7 It is explicit from the provisions that such a deduction is only for the newly, export-oriented undertakings that manufactures or produces any items / computer software. By no stretch of imagination can R&1) services tantamount to manufacture or production of an article. But in zeal to claim the maximum possible deduction the assessee has made a false claim. It has been attempted by bringing the non-eligible business profits into the fold of eligible profits. The assessee has gone to such an extent that even though the F.56G does not support this illegal claim, the assessee has revised the return seeking the extra, undue claim. 5.8 The Board's Approval submitted by the assesee was closely scrutinized. It is seen that the date of issue of the Approval was 25/03/2011. To put things in perspective, effectively only from the FY 2011-12 (AY 2012-13) the assessee would be eligible for the claim of deduction. However the assessee has made the claim in....
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....he R&D services would he covered by Explanation 2 to section 1013, precisely by clause (b) of the said Explanation 2 i.e., any customized electronic data or any product or service of similar nature as may be notified by the Board. On a careful perusal of the provisions of section 10B and CBDT's Notification No. SO 890(E) dated 26.09.2000, we are of the view that what was sought to be covered by clause (b) of Explanation 2 to section 1011 is in the context of 'computer software" and in view of the nile of ejusdein generis, they cannot mean anything else than "computer software". Hence, the assessee's reliance upon clause (h) of Explanation 2 to section 10B is Far-fetched and cannot be accepted. Further, the activities carried on the assessee clearly fell within two distinct business segments - one is Manufacturing of APIs and the other is contract R&D services. Just because the APIs were manufactured for the Apotex Group and also at the same time the R&D services were provided to this group on contract basis, the two segments cannot be considered together as to have constituted a coherent or integral whole so as to qualify for deduction of profits and gains of both the s....
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.... of Export Oriented Unit set up in an Export Processing Zone will be considered valid, once such an approval is ratified by the Board of Approval for EOU Scheme. In the present case, it is not in dispute that the permission / approval granted by the Development Commissioner has been ratified by the Board of Approval, may be subsequently. The moment the decision / approval of the Development Commissioner is ratified by the Board of Approval it will relate back to the date on which the approval was granted by the Development Commissioner." (emphasis supplied) 2.1.5 Further, the Hon'ble Delhi High Court in the case of Enable Exports Private Limited (ITA No. 1072 of 2011), held that the approval granted by the SEZ Development Commissioner which was subsequently ratified by the board was valid for the purpose of claiming deduction under Section 10B of the Act. 2.1.6 Further, in subsequent assessment year (i.e. AY 201011, 2011-12), the Commissioner of Income Tax (Appeals), after relying on the above judicial precedents has allowed deduction u/s.10B of the Act. 2.1.7 Considering the above judicial precedents, the Appellant submits that the denial of deductio....
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....d for the purpose of Section 2. Once the said permission has been granted then the ratification by the Board is merely a formality and therefore would relate back to the date of actual grant, as the assessee cannot be permitted to wait till eternity, if there is a delay / latch on the part of the Board for not ratifying within the time sanctioned by the DC. 30. Having said so, we shall examine the other aspect raised by the assessee in para 2.2 onwards of the written submissions. For the purpose of completeness, we are reproducing herein below the written submissions filed by the assessee with regard to the fact whether R & D activities undertaken by the assessee would fall within the ambit of section 10B or not. 2.2. Denial of deducton /s.10B of the Act w.r.t R & D activities 2.2.1 On the ground that the same does not amount to manufacturing or producing of articles or things: R&D amounts to manufacturing or producing of articles or things i) At the outset, we invite Your Honours attention to Section 10B (i) of the Act which is reproduced below: "subject to the provisions of this section a deduction of such profits and gains as are d....
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....resaid finding and allowed the relief in favour of the assessee by holding that the activity of the assesse was such that it would fall within the purview of the expressions "manufacture" or "production" and that the ultimate photographs which came to be produced as a result of the business activity of the assessee came within the expressions "article" or "thing". This view was upheld by Hon'ble Calcutta High Court. v) Further, according to Webster Dictionary, meaning of the word 'thing' is the product of work or activity which in Appellant's case is the research reports/documentation. In this regards, the Appellant relies on the decision of Rajasthan High Court in case of CIT vs. Trinity Hospital (86 Taxman 127) wherein the high court while dealing with issue of allowability of investment allowances with respect to x-ray machine has held that the graphs obtained from these machines, which are the result of efforts or activity, could be said to be a 'thing'. vi) In view of the above, the Appellant submits that the research documentations/ reports are produced by the efforts put in by the employees of the Appellant and hence, same amounts to....
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....ng comparison between the Appellant's case and Syngene International Limited's is tabulated as below: xii) It can he observed from the above chart that the facts of the Appellant is exactly similar to the Syngene International Limited (Supra) and hence, the decision of the Hon'ble Bangalore Tribunal is squarely applicable to the Appellant's case. The relevant para of the order is reproduced hereunder for Your Honour's ready reference: 23. "Research conclusions can be considered as documentations of the analysis and steps done during the research process. Or in other words the end result is the analysis and presentation of data in a desired format. Hon Madras High court had art occasion to consider the issue as to whether data processing done with the help of computer resulting in end product which was analysis and presentation of data in prescribed format was a product of new article in the case of CIT vs CompHelp Services Pvt Ltd (2000) 246 ITR 722. Claim of the assessee was for investment allowance................................ 25. The assessee here had done research using sophisticated machinery and the end product was either rese....
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.... ii) any customized electronic data or any product or service of similar nature, as maybe notified by the Board, which is transmitted or exported from India to any place outside India by any means". xv) As mention above, the findings of research is documented in the form of an electronic report and transmitted electronically. Therefore, given the fact that the data exported (i.e. the report) is largely a summary of the research data which are customized, it should fall under the category 'customized electronic data' as envisaged in clause (i)(b) of explanation 2 to section 10B of the Act and therefore, the benefit of section 10B should be given to the Appellant. xvi) Further, it may kindly be noted that the AO in subsequent years (i.e. AY 2010-11, & AY 2011-12) has not denied the deduction u/s.10B on the ground that R&D activities does not amount to manufacturing/ producing of article / things. xvii) In view of the above, the Appellant most humbly submits that deduction u/s. 10B w.r.t. R&D activities be granted to Appellant. 31. On the other hand the Ld. DR relied upon the decision of the DRP reproduced herein above and sought to d....
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....lity of chlorobenzene and other chemicals are exigible to the benefit u/s.10B of the Act. It was the case of the assessee that the R & D pharmaceuticals falls under the category of computer software as held by the Bangalore Bench of the Tribunal in Syngene International Ltd (supra). 38. Before we closely scrutinise and examine the permission initially granted and subsequently amended by the DC, it is necessary to mention the relevant provisions of SEZ Act, which are as under : 2(r) "manufacture" means to make, produce, fabricate, assemble, process or bring into existence, by hand or by machine, a new product having a distinctive name, character or use and shall include processes such as refrigeration, cutting, polishing, blending, repair, remaking, re-engineering and includes agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture, viticulture and mining; 2 (z) "services" means such tradable services which,- (i) are covered under the General Agreement on Trade in Services annexed as IB to the Agreement establishing the World Trade Organisation concluded at Marrakes on the 15th day of April, 1994; (ii) may be pr....
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....hich the Unit shall undertake the authorised operations and its obligations and entitlements. (9) The Development Commissioner may, after approval of the proposal referred to in sub-section (3), grant a letter of approval to the person concerned to set up a Unit and undertake such operations which the Development Commissioner may authorise and every such operation so authorised shall be mentioned in the letter of approval. 19. Notwithstanding anything contained in any other law for the time being in force, the Central Government may, if required, - (a) prescribe a single application form for obtaining any licence, permission or registration or approval by a Developer, or an entrepreneur under one or more Central Acts; Single application form, return, etc. (b) authorise the Board, the Development Commissioner or Approval Committee, to exercise the powers of the Central Government on matters relating to the development of a Special Economic Zone; or setting up and operation of units; (c) prescribe a single form for furnishing returns or information by a Developer or an entrepreneur under one or more Central Acts. 20. Notwithstandi....
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....o Development Commissioner: Provided that upon a request by the entrepreneur, further extension may be granted by the Development Commissioner for valid reasons to be recorded in writing for a further period not exceeding two years: Provided further that the Development Commissioner may grant further extension of one year subject to the condition that two-thirds of activities including construction, relating to the setting up of the Unit is complete and a chartered engineer's certificate to this effect is submitted by the entrepreneur. (5) If the Unit has not commenced production or service activity within the validity period or the extended validity period under sub-rule (4), the Letter of Approval shall be deemed to have been lapsed with effect from the date on which its validity expired. (6) The Letter of Approval shall be valid for five years from the date of commencement of production or service activity and it shall be construed as a licence for all purposes related to authorized operations, and, after the completion of five years from the date of commencement of production, the Development Commissioner may, at the request of the Unit, extend validity of the....
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....tegral of each other is correct, then there was no necessity for the assessee to mention separately about the "Aricle Or Thing Manufactured" and " R & D" separately for the purpose of claiming the export turnover. The assessee itself was convinced that both the activities are distinct and separate and therefore the assessee has given two separate export turnovers in respect of each of the activity. 34. In our understanding, as mentioned hereinabove also, the manufacturing of Active Pharmaceutical Ingredients (API) and intermediaries and carrying out of R & D for the same AE{ as a contract service provider}, are two distinct activities and therefore the assessee should have taken two distinct approval from the DC by filing two separate project reports for carrying out these two activities. Only one project report in respect of manufacture of API and others for chlorobenzene and other chemicals were submitted and therefore there was no independent permission for carrying out the R & D activities of pharmaceuticals for AE. 42. There is yet another reason for rejecting the contention of the assessee is that vide letter dt.16.8.2004, the assessee has sought issuance of amendment /....
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.... shall report to Apotex on the progress of each Project in the manner and at such times as may be agreed upon by Apotex and APTPL from time to time. 2.5 APIPL shall conduct the Research in compliance with any specifications that may be provided in writing to APIPL by Apotex, and any changes to these specifications made by APIPL, must be notified to and approved by Apotex in writing, prior to implementation. APIPL shall conduct the Research and provide any additional services requested by Apotex in accordance with Good Laboratory Practice and Good Manufacturing Practices, as commonly known and referred to in the pharmaceutical industry. 43. From a close scrutiny of the activities undertaken by the assessee, it is clear that the assessee is required to conduct the research in compliance with the specification that may be provided in writing to the assessee by its AE and the assessee is not permitted to deviate from the specification without a written prior approval. Moreover the approval granted to the assessee by the DC with respect to item as mentioned as under : Research & Development Centre with an associated production facility of Chloro Benzene and other ch....
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....set off against such profit and gains of the undertaking as a whole could not arise. In this view of the matter and respectfully following the decision of the Hon'ble Karnataka High Court in Yokogawa India Ltd. (341 ITR 385). We uphold the impugned order of the ld CIT(A) in directing the AO to compute the deduction u/s 10A of the Act in the case on hand without setting off the business losses from non section 10A units against the income of 10A units. We hold and direct accordingly. Consequently, the ground raised by assessee is allowed. IT(TP)A. 2204/Bang/2016 -Revenue appeal for AY 2011-12 : 20. In this appeal the grounds no.1 to 6 pertains to the issue of 10B. As we have dismissed the ground of the assessee for the assessment year 2009-10, in the superseding paragraphs, following the same, the grounds raised by the Revenue for AY 2011-12 are allowed. 46. In the result, : IT(TP)A.156/Bang/2014 by the Revenue is partly allowed. IT(TP)A.2204/Bang/2016 by the Revenue is allowed. IT(TP)A.249/Bang/2014 by the Assessee is partly allowed. Order pronounced in the open court on 8th day of February, 2019. ============= Document 1 Particulars N....
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.... Registration; Registration with Central Pollution Control Board; Power connection; 10. Building approval plan; 11. Sales Tax registration; 12. Approval from Inspectorate of factories; 13. Pollution control clearance, wherever required; 14. Any other approval as may be required from the State Government. 1. The application should be submitted to the Development Commissioner of the concerned Special Economic Zone in 5 copies alongwith a crossed Demand Draft of rupees five thousand drawn in favour of The Pay & Accounts Officer of the concerned Special Economic Zone together with a project report giving details of activities proposed. For Official Use only Application No Date: Amount Rs. Draft No. Draft date Drawn on Details of Bank Draft (Name of the Bank) Payable at 1. PARTI Name and full address of applicant firm/ company (in block letters) Registered Office in case of limited company and Head Office for others) Pin Code Tel. No. Fax No. Permanent E-Mail Address Web-Site, if any Passport No., if any Name of Bank with Address & Account No Digital Signature Incom....
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.... Authorised Subscribed (c) Paid up Capital ($ in thousand) (Ra. in lakhs) Note: If it is an existing company, give the break up of existing and proposed capital structure (ii) Pattern of share holding in the paid-up capital (Amount in Rupees) (Rs. In lakhs) (US $ Thousand) (a) (b) Foreign holding (1) Non Resident Indian company/Individual holding Repatriable (ii) Non-repatriable (0) (d) Total Equity (e) Resident holding External Commercial Borrowing (give details) Technical collaboration (furnish details in project report) Lumpsum payment (a) (b) Design & Drawing fee (c) (d) Payment to foreign technician Royalty (on exports) (c) Royalty (Gross of Taxes) (on domestic tariff area sales if envisaged) (f) Duration of agreement 3. ..........(Number of years) Marketing collaboration (furnish details in project report) XI. Foreign Exchange Balance sheet Total Total % 1st 2nd 3rd 4th 5th (5 yrs) Rs. In lakhs/$ in thousand • 1. FOB value of exports in first five years 2. *Foreign Exchange outgo on for the first five year....
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.... obtained from the Development Commissioner. PART-II If sub-contracting is envisaged in the manufacturing operations, furnish following details: (i) Sub-contracting permission is required for- (a) part of the production process (quantity) (b) any particular production process (give details) (ii) Name and address and other particulars of sub-contractor and whether the sub-contractor is (a) Domestic Tariff Area unit/Central Excise Registered or otherwise (b) Other Special Economic Zone unit (c) Export Oriented unit or Electronic Hardware Technology Park unit or Software Technology Park unit. Document 8 FORM G (FORMAT FOR LETTER OF APPROVAL FOR UNIT) [Refer rule 19] OFFICE OF DEVELOPMENT COMMISSIONER, ..SPECIAL ECONOMIC ZONE DEPARTMENT OF COMMERCE, GOVERNMENT OF INDIA Dated the..... Subject: Your proposal for setting up a unit in the Special Economic Zone. Reference: Your application No.......dated.......... Dear Sirs, With reference to the above mentioned application. Development Commissioner, Special Economic Zone is pleased to extend to you all the facilities and entitlements admissible to a ....