Maharashtra gets clearance for largest number of SEZs in 2006
Mumbai: Maharashtra received clearance for one third of the 237 special economic zones cleared till October 2006, according to Central government figures.

As many as 72 SEZ's have been cleared in the state accounting for more than Rs60,000-70,000 crore investment in the next three years. The state government of Maharashtra is in the process of acquiring land for the SEZs. Government officials said land under cultivation will not be acquired for such projects and only single crop land would be acquired. Also farmers whose land is acquired will be given all benefits occurring from these SEZ's. The Maharashtra Industrial Development Corporation (MIDC) has 1,40,000 acres of land in its possession and plans to acquire another 50,000 acres. The state aims to develop information technology SEZ's around Hinjewadi in Pune, while Baramati would have Textile SEZ, agro-product in Latur, pharma in Nanded and multi-product SEZ's at Jalna and Nashik.
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Tamil Nadu to join VAT regime on Jan 1
Chennai: Tamil Nadu is making preparations to shift to a VAT regime from January 1 on schedule. The Government has announced measures to address the concerns of the small traders and allay their fears on the shift to a new tax regime. Traders with turnover of up to Rs10 lakh with business entirely within Tamil Nadu have been exempted from VAT, while all traders with a turnover of up to Rs5 lakh have been exempted. Traders with a turnover of up to Rs50 lakh have the option of paying compounding tax of 0.5 per cent. Exemptions, deferrals granted under the Sales Tax regime are to continue. The effective tax rate in the State has dropped from 16 per cent to a peak rate of 12.5 per cent. Paperwork will also be simpler as the tax filing is on a self-assessment basis.
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Ficci wants tax sops for biotech cos
New Delhi: The Federation of Indian Chambers of Commerce and Industry (FICCI) has sought tax benefits for biotech firms with a view to promoting innovation in biotechnology and effect a five-fold increase in revenue generation to $5 billion.

Expenditure incurred on clinical trials by companies is currently not accepted as an expense to be included for weighted tax deduction at 150 per cent. The chamber has recommended that tax benefit should also be extended to expenditure incurred on clinical trials for all companies. Since expenditure incurred on scientific research is allowed there is no reason why it cannot be extended to clinical trials also, the chamber has argued.

Second, the Government may consider providing relief to recognised biotech, pharmaceutical and clinical research companies by giving a blanket permission of around Rs 1 crore per annum for import of laboratory consumables. These can be certified as non-hazardous, if required, the chamber has recommended.

Third, at present there is a lack of technical expertise at the airports and ports to handle the biological materials. Customs officials may be updated regularly with the new policies on issues related to handling of biological materials.

Moreover Ficci has said that the purpose of exemption of basic duty on equipment for research is to promote investment in basic research but the same is being nullified by subjecting it to additional duty of 16 per cent. Hence, the anomaly should be corrected.

The chamber has noted that there is exemption against the additional customs duty applicable to public funded research organisations or non profit research organisations where they have to pay only 5 per cent custom duty on equipment for research. The chamber has demanded similar duty benefit for Government funded organisations and private sector for research activities.

Also on the lines of excise duty exemption, customs duty should also be nil for equipment, the chamber has demanded. Sixth, service tax was imposed on clinical trials for testing of drugs and formulations this year at the rate of 12.24 per cent (including education cess) under the category `technical testing and analysis services'. Thus, it may be seen that service tax would be an additional high impact cost to the nascent Indian clinical trial industry. It is therefore suggested that CRO industry be exempted from the levy of service tax on all its activities including clinical trials to encourage it.

Ficci has suggested that as for biofuel and ethanol production, the Government may consider extending tax incentives such as excise and import duty exemption to promote use of bio-diesel and ethanol in auto fuels.
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