Last year, the government of Rajasthan launched a scheme to promote investment for creation of large scale of job opportunities. The RIPS scheme will promote investment made by enterprises in establishing a new unit, expansion of an existing unit and investment made in revival of a sick unit. This scheme is valid till 31st March 2019. As usual the scheme is not valid to the enterprises that commenced their production/manufacturing before the announcement. The scheme provides better incentives to big and medium size enterprises than smaller ones. However, the government has made enough room for the small enterprises too. The state government provides a number of incentives and rebates to all the manufacturing units under this scheme.
The main highlights of this scheme are:
- Investment subsidy of 30% on VAT and CST which are due this year but the enterprise should have 7 years track record of paying both the taxes.
- Similarly, 20% of subsidy on VAT and CST through Employment Generation Scheme.
- Electricity duty will be exempted by 50% for 7 years.
- Exemption from paying 50% Land Tax for 7 years.
- Exemption from payment of 50% of Mandi Fee for seven years.
- Similarly, manufacturers will be exempted from payment of 50% on Stamp Duty and conversion charges.
Apart from these general incentives and benefits provided to all the manufacturers, government provides a number of other financial incentives under this scheme. Prioritized sectors include pharmaceutical, plastic or oil manufacturing, textile, Tourism, dairy, ceramic and glass, MSME, and industrial gases.
Micro, Small and Medium enterprises get more relaxation and discounts under this scheme. Here is the list of extra incentives provided to MSME sector:
- The MSMEs in rural areas will get 75% of exemption from payment of electricity duty instead of 50%.
- Reduced CST of 1% for a period of 10 Years.
- 50% exemption from payment of Entry Tax on raw and processing materials and packaging material excluding fuel.
For more information on how to avail subsidies under this scheme, CLICK HERE.