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Rajasthan govt announces fresh sops for IT sector 

MP Jain  
Jaipur: The Rajasthan government has announced a slew of tax concessions in order to promote the IT sector in the State. Henceforth, software will carry sales tax not above the uniform floor rate announced by the government. At the same time the sales tax on leasing of computers and its accessories will be fixed not above the uniform floor rate fixed by the government. The rate of tax on inter-state consumables shall be fixed below the uniform floor rate.

Commercial buildings dedicated to software and IT industry will be exempted from the land and building tax. Software units have also been permitted to locate in urban areas. Such units will also be allowed to be set up on residential plots without requirement of change in land use. The government has also decided to exempt the property transfer in designated IT parks from stamp duty. A percentage of the sales tax receipts from the IT industry shall be earmarked for strengthening of the sector in the State.

Uninterrupted power supply will be made available by the RSEB (now un-bundled into five separate companies). No prior permission will be required to install DG sets. Definition of IT software and IT hardware will be modified in all State Acts in line with the approved policy of the Centre. IT software and IT services companies will be exempted from routine inspection by inspectors for factory boiler, excise, labour, pollution, environment, industry, etc. IT software and services shall be deemed as manufacturing activity for the purpose of calculating incentives for the industry. The FIs have been asked by the government to treat IT software and IT services as priority sectors.

State FIs and banks have been allowed to invest in equity in the It sector in line with the approved policy of the Centre. RIICO in the meantime has been asked by the government to allot land in the industrial areas on a priority basis to the IT software and IT industry sectors. A five-acre plot has been given to the Jaipur-based Compucom Software Ltd. A tie-up has also been forged between Asian CERC, a Bangalore-based software company and the Malviya Regional Engineering College to run one-year software excellence training programme.

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