Chem Min seeks extension of tax exemptions

The Ministry of Chemicals and Fertilisers has sought the Finance Ministry's approval for extension of the time limit on tax exemptions provided to R&D activities in the pharma sector.

"Time limit for tax exemption on research and development oriented companies has been under consideration by the Ministry of Chemicals and Fertilisers. A proposal has been sent to the Revenue Department for the extension and we are hopeful for a favourable move," Satwant Reddy,
secretary, Department of Chemicals & Petrochemicals, said.

The time limit on tax incentives provided to R&D oriented companies was to expire on March 31, 2007.We have sought a 10-year extension, which would offer incentives to companies till 2017, she said.

Companies, which fulfill the government's gold standard criterion are entitled to get tax benefit under R&D.