Scheme for Recognition and Registration of In-house R&D units of Corporate Industries
The Department of Scientific & Industrial Research(DSIR),Govt of India is operating a scheme for granting recognition & registration to in-house R&D units established by corporate industry. This is the only scheme in the entire government set-up for benchmarking the industrial R&D.
- To boost R&D departments of India so that research activities are increased in the country.
- To give tax benefits and other benefits to R&D units of corporate industries.
- The applicant should be a company registered under the Companies Act, 1956 or 2013.
- The company shall be eligible for consideration only after the completion of three financial years after formation.
- The applicant should have regular source of income at least during the last two years to sustain the business and this needs to be elaborated in the application.
- The companies seeking recognition to their in-house R&D units should be engaged in manufacture or production or in rendering technical services.
- Companies fully engaged in contract research are also eligible for consideration provided independent infrastructure is available for research activities.
- Those engaged in research only at present but have plans to start manufacture at a later date may also be considered for the recognition, if there is a potential.
- The R&D unit(s) should not be located in residential areas but should be operating in premises authorized by the relevant Central/State Government. (Proof for such authorization needs to be furnished).
- Independent infrastructure for research activities and adequate technically qualified manpower should be available (Minimum area for the R&D activities should be at least 1000 Sq. ft.).
- At the time of application, the R&D unit(s) should be functional and should have well defined, time-bound R&D programmes leading to development of innovative products and/or technology(ies)
Specifically for Biotechnology Start-ups:
To promote Entrepreneurship in Biotechnology sector, DSIR has announced relaxation in 3 years of existence for granting short term fresh recognition to Biotech start-ups established in Incubation Centre or Technology Parks.
Eligibility criteria for recognition of Biotech start-ups:
- The applicant should be a Biotech start-up company conducting high end research with a scope for generating IPs and revenues out of it.
- The start-up should have qualified R&D manpower and basic minimum R&D infrastructure.
- The Company should have focused research objectives based on innovative and recent advanced technologies, a clear business model and sources of funds for sustainability
- The Company should furnish documents with the Incubator Centre or Technology Parks.
- The Company should furnish a list of Biotechnology based project proposals submitted / approved for Government of India funding. ┬á ┬á
- Under section 35(2) of the Income Tax Act, 1961, 100% deduction is allowed for Capital expenditure on R&D including cost of building (excluding cost of land), plant & equipments etc.
- Under section 35 (2AB) of the Income Tax Act, a weighted deduction of 200% is allowed to Recognized R&D unit for all expenditures (other than Land & Building) incurred for R&D purpose.
- 100% exemption in Custom duty for capital goods imported for R&D purpose is allowed.
- 100% exemption in excise duty on purchase of capital equipment and consumables needed for R&D purpose is allowed.
How to Apply:
Companies desirous of seeking recognition to their in-house R&D units should apply to DSIR online through DSIR website or though the Portal Link. After successful submission of online application send one set of hard copy (PDF, generated by the system) signed by the MD/whole-time Director of the company to DSIR along with all uploaded annexures.
The applications for Recognition & Registration should be sent by speed post to:
Shri K.V.S.P. RAO Scientist ‘G’ and Head (RDI), Department of Scientific & Industrial Research Technology Bhavan, New Mehrauli Road New Delhi-110 016
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