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Benefits available for Investment in Tourism Sector under RIPS – 2014

BENEFITS AVAILABLE TO NEW TOURSIM SECTOR[1] UNIT

UNDER RIPS – 2014

S.N. PARTICULARS DETAILS APPLICABILITY
1 Investment Subsidy 50% of VAT & CST deposited by the enterprise for 7 years This will be available subject to maximum cap[2]

 

 

2 Employment Generation Subsidy 10% of VAT & CST deposited by the enterprise for 7 years Amount of Subsidy per employee per year will be

 

–          Rs. 30000/- for women/SC/ST/Person with disability

–          Rs. 25000/- for others and calculated on monthly basis.

3. Reimbursement of VAT paid on P & M and Equipment 25% of VAT paid on purchase of Plant and Machinery and Equipment for a period of Seven years
4. Exemption from payment of Entertainment Tax 50% exemption from payment of Entertainment Tax for 7 years
4 Exemption from payment of Luxury Tax 100% exemption from payment of Luxury Tax for 7 years
5 Exemption from payment of Stamp Duty 75% exemption from payment of stamp duty on purchase or lease of land
6 Exemption from payment of conversion charges 100% exemption from payment of conversion charges for change of land use
7 Exemption from payment of development charges 100% exemption from payment of development charges

LIST OF PLANT & MACHINERY AND EQUIPMENT ELIGIBLE FOR CLAIMING 25% VAT REFUND UNDER RIPS – 2014

Following is the list of plant and machinery and equipments eligible for claiming 25% VAT Reimbursement for Tourism Sector under RIPS – 2014

S.No. Particulars
1 AC Plants, AC’s, Fans & Exhaust Fans, Coolers etc.
2 Pollution control machines for air, water and light.
3 Non CFC Equipment for refrigeration and air conditioning and other Eco Friendly measures and initiatives
4 DG Sets
5 Housekeeping machines & equipments
6 Solar heaters and solar plants / geysers/ cold & hot running water machine
7 Furniture
8 Lifts and elevators
9 Metal detectors (door frame or hand held)
10 CCTV
11 X Ray machine
12 Under belly scanner to screen vehicles
13 Smoke detectors
14 Heating and Cooling systems, machines and plants
15 Safe keeping / in room safe
16 Minibar / Fridge
17 TV
18 Dry cleaning / laundry related equipment
19 Tea / Coffee making machines and equipments etc.

 

[1] Tourism Sector Definition : “Tourism Sector” means

  • A hotel or motel making minimum investment of Rs. 2 Crore and having accommodation of minimum 20 let-able rooms; or
  • A heritage hotel, certified as such by the Ministry of Tourism, Govt of India / Dept of Toursim, Rajasthan; or
  • A convention centre or a resort making minimum investment of Rs. 2 Crores; or
  • Any other immovable tourism unit other than a restaurant, defined as such under the Tourism Policy of state subject to condition that it shall be eligible for only such benefits as may be granted by SEC.

 

[2] Maximum extent of Subsidy : The maximum amount of subsidy (Investment subsidy + Employment Generation Subsidy) in any period shall not exceed the amount of VAT & CST due and paid in that period. Moreover, the total amount of subsidy paid shall not exceed the eligible fix capital investment as approved by the appropriate Screening Committee.

Download the new Tourism Policy of Rajasthan Government – 2015 by following this link.  pdf-icon 1-1

CA Amit Mundhra

Author is a Fellow Member of Institute of Chartered Accountants of India. He can be reached at amit.mundhra@gmail.com, Mobile : 9 8 2 9 0 1 0 1 7 2

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