- 100% tax exemption for 10 consecutive years out of 15 years
- MAT / AMT @ 9% of book profits apply to Company/LLP as a unit in IFSC. MAT not applicable to companies in IFSC opting for new tax regime
- Dividend income distributed by Company in IFSC to be taxed in the hands of the shareholder.
- No GST on services–
- Received by unit in IFSC
- Provided to IFSC/SEZ units or Offshore clients
- GST applicable on services provided to DTA.
- State Subsidies – Lease rental, PF contribution, electricity charges.
- CSR provisions not applicable for 5 years from commencement.
- Resident director mandatory after first year of incorporation.
- Internal audit applicable only if provided in AOA.
- No requirement to set up Audit Committee, Nominations and Remuneration Committee.
- Limits on Managerial Remuneration not to apply.
- IFSC Company can follow same financial year as holding company – No approval required
- EGM at any place within or outside India subject to all shareholders’ approval
- Exemption to foreign companies from offering for subscription in the securities, requirements related to prospectus.
Newly introduced State Subsidies Incentives available under IT/ITeS sector policy of Gov. of Gujarat
- Special Incentives for IT City/Township, Cloud Ecosystem, Data Centers and R&D institutes
| IT City/Townships | Capex : One time support of 25% of CAPEX subject to maximum of INR 500m |
| Facilitating infrastructure | Opex (Rentals): First two years: 50% of monthly rentals subject to a maximum of INR 10k First three years subsequently:25% of monthly rentals subject to a maximum of INR 5k |
| Cloud System for CLS | Capex: One-time support of 25% of eligible CAPEX upto INR 200m |
| Data centre projects | Capex:One-time support of 25% of eligible CAPEX upto INR 1.5bn Opex: Power tariff subsidy of INR 1/ unit (5 years) |
| Establishing R&D institutes | One-time support of 60% of machinery cost upto INR 50m |
Exemptions and Subsidies in Gift City
Newly introduced State Subsidies Incentives available under IT/ITeS Sector policy of Gov.of Gujarat
2.Other Capex and Opex related subsidies
| Capital Subsidy | Capitalsubsidy@25%ofcapitalexpenditure(one-time) Up to INR 2000m where gross fixed capital investment by entity exceeds INR 2500mUp to INR500mwherecapitalinvestmentislessthanINR 2500m |
| Subsidy for operating expense | Opex Subsidy @15% of operating expenditure(for5years) Up to INR 400m where gross fixed capital investment by entity exceeds INR 2500mUpto INR200m where gross fixed capital investment is less Than INR 2500m |
| Electricity duty reimbursement | 100% Reimbursement of Electricity duty for 5years |
| Reimbursement of Provident Fund contribution by employer | 100% of EPF amount contribution (upto12%) 100% for female employees75% for male employees |
| Interest subsidy | Interest subsidy (for5years) of upto7% on term loan or actual interest paid, max INR 10 mn per annum |
| Employment generation incentive | Reimbursement of 50% of one month employment cost to company(one- time) up to a maximum of INR 50k for men INR 60k for women |