Investment allowance, Finance, Other Engineering

Assignment Help:
Investment allowance

Until a few years ago, a company could charge an amount equal to 25 per cent of the original value of an asset as investment allowance in the period in which it was installed for production, and thus, it provided tax shield equal to investment allowance was to encourage investment in fixed assets by the corporate sector. The government withdrew investment allowance form April 1987. It was however reintroduced only in case of the high tech industries in 1988. The rate was 20 per cent. It has also been withdrawn now.

Investment deposit scheme

The government introduced the investment deposit scheme when the investment allowance scheme was withdrawn in 1987. Under this scheme as firm could deposit up to 20 per cent of the profits (before the set off of any unabsorbed business losses of earlier years) with the industrial development bank of India. For this the firm would be entitled to a deduction equal to the amount of deposit and or any new plant and machinery. The scheme has also been withdrawn now.

Other tax incentives

There are number of other tax and non-tax incentives available to a firm when it undertakes a new investment project.

The sales tax deferral is also available to a unit set up in a specific backward area. Sales tax equal to 4 per cent of gross sales collected from customers in allowed to be retained, free of interest, for a period of 7 years. This, the sales tax collected during a year needs to the remitted to the state government only in the 8th year. This concession is available for a period of 6 years from commercial production.

Related Discussions:- Investment allowance, Finance

Vehicle kinematics, x(t)=integration((Vx(t)+Vy(t))/2*cos(theta)dt) where Vx...

x(t)=integration((Vx(t)+Vy(t))/2*cos(theta)dt) where Vx, Vy and theta is a function of t I am getting problem with how to write it down in matlab in order to get the position x.

Use of multicylinder engine, USE OF MULTICYLINDER ENGINE If, in a multi...

USE OF MULTICYLINDER ENGINE If, in a multi cylinder engine, power strokes are staggered, the limitation of flywheel can be overcome to a large extent. Torque diagram for 2 cyli

Mode ii interlaminar fracture , The Mode II fracture toughness is measured ...

The Mode II fracture toughness is measured using the ENF  Typically, the specimen length is 120 mm, the width B is 20 mm, the thickness is between 3 and 5 mm and the distance be

Matlab, load flow analysis by fast decoupled method

load flow analysis by fast decoupled method

Projects., Ten projects only agricultural engineer will have say

Ten projects only agricultural engineer will have say

Aieee, aieee ka course karne ke liye kya karna padega

aieee ka course karne ke liye kya karna padega

Simulation, A system is a walk-in medical clinic; a simulation is used to d...

A system is a walk-in medical clinic; a simulation is used to determine staffing levels. Under what circumstances would it be appropriate to use a terminating simulation or a stead

Installing aircraft parts, Installing Aircraft Parts: Prior to fit remo...

Installing Aircraft Parts: Prior to fit remove the label from the engine and attach it to the paperwork for safekeeping. Check the engine over to ensure it is complete and chec

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd