Financial Daily from THE HINDU group of publications
Tuesday, Oct 07, 2003
Financial Daily from THE HINDU group of publications Tuesday, Oct 07, 2003 |
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Industry & Economy
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Industrial Policy 50% remission in stamp duty for SIDCO, SIPCOT sites, says TN R. Balaji
Chennai , Oct. 6 THE Tamil Nadu Government has announced a 50 per cent remission on stamp duty for industries purchasing plots and sheds in industrial estates developed by SIDCO and SIPCOT. While the order has been welcomed by the manufacturing community in general, a section of them represented by the small and tiny industry sector is concerned that the order in its present form brings in a levy of 6 per cent stamp duty from which they had earlier been exempt. According to the order dated September 25, the Government has remitted 50 per cent of the charge under the Indian Stamp Act for developed industrial plots, sheds, or lease or lease-cum-sale deed irrespective of location. Sources said the announcement is in line with the manufacturing policy announced recently. The Government had come out with a new industrial policy 2003 that announced as a part of the incentive package that a stamp duty of 6 per cent inclusive of surcharge would be levied on land lease or purchase of units in all industrial parks promoted by the Government and its agencies. The stamp duty would be at the actual cost indicated by the agency. The policy had also mentioned that approved private industrial parks irrespective of location would also be extended this benefit of stamp duty concession. Earlier, the stamp duty was charged at 12 per cent, and the 50 per cent remission represents a significant gain to the medium and large industry, sources said. The Tamil Nadu Small Industries Development Corporation (SIDCO) and the State Industries Promotion Corporation of Tamil Nadu (SIPCOT), both State Government agencies, have promoted industrial parks in various locations in the State. SIDCO has developed over 74 industrial estates with 11 located in Chennai suburbs and neighbouring districts. SIPCOT has developed industrial estates in 17 locations throughout the State. While the move has been welcomed by the industry, a section of the manufacturing community represented by the small and tiny industries is a worried lot. The small and tiny industries have been exempt from stamp duty and the recent government order covering the SIDCO industrial estates effectively brings in a 6 per cent stamp duty. The small industries sector has expressed concern over the development. While the new industrial policy had targeted the development of the medium and large industries, another policy is in the pipeline for the small and tiny industries. They expressed the hope that the new policy on small and tiny industries would remedy the situation.
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