SUBSIDY ON THE ASSESSED VALUE ADDED TAX (VAT)
All Micro Manufacturing Enterprises will be entitled to a 100% subsidy on the net Value Added Tax (VAT) paid by them for the first six years upto the value of the investments made in eligible Plant and Machinery. This incentive is also applicable to all eligible Micro Enterprises which have taken up substantial Expansion / Diversification of the existing projects.
Quantum of Assistance
This total subsidy entitlement over the period would be upto the value of investments made in the eligible plant and machinery at the time of filing of EM (Part II) with the District Industries Centre concerned.
In case of Expansion / Diversification projects the subsidy entitlement would be on the additional value of investments made in plant and machinery for the Expansion / Diversification and the reimbursement would be limited to the Value Added Tax paid on production / turnover made over and above the production / turnover of the original unit.