15.14.3. Subsidies and exemptions

15.14.3. Subsidies and exemptions

According to (Gujarat, 2015), there are many exemptions provided under Companies Act 2013 such as CSR provisions is not applicable within 5 years of commencement, internal audits will be provided only in AOA, no requirement to set up audit committee, nominations and remunerations committee, IFSC company can follow same financial year as holding company and no other approval are required for it.

Other than the Central government subsidies on IFSC units there are special subsidies given from the Government of Gujarat under IT/ITes policy:

CSR provisions are not applicable within 5 years from commencement. Residents’ director mandatory after 1st year of incorporation. Internal audit applicable only if provided in AOA

IFSC Company can allow same financial year as holding company- No approval required.

No requirement to set up audit committee, nominations and renumeration committee. Limits on managerial remunerations not to apply.

EGM at any place or outside India subject to all shareholders’ approval.

State subsidies incentives available under IT/ITeS policy of Gov. of Gujarat

Capital subsidy capital subsidy at 25% of capital expenditure for one-time purchase of computers, networking, and related hardware. Stamp duty and registration Where-ever cost is incurred 100% reimbursement of stamp duty and registration is paid.

Electricity duty and subsidy on power tariff

Reimbursement of provident fund contribution by employer

100% reimbursement of electricity duty and Rs 1 subsidy on power tariff for a period of 5 years. 100% and 75 % EPF amount paid in case of female and male employee, respectively.

Lease rental subsidy for every 50 sqft per employee

Table 59-state subsidy/ incentives (Source: GIFT SEZ) up to 20 employees Rs 8 per sqft

20-100 employees Rs 5 per sqft above 100 employees Rs 3 per sqft