Electronic Components Manufacturing

The steps taken are as follows:
a) Infrastructure support: The Department has set up Information Technology Investment Regions (ITIRs). These regions are supported equipped with excellent infrastructure.
b) R&D promotion: 150% of expenditure incurred on in-house R&D is also available under the Income Tax Act.
In addition to the existing scheme for funding R&D projects, the department has put in place the 2 key schemes:
i) Support International Patent Protection in Electronics & IT (SIP-EIT).
ii) Multiplier Grants Scheme (MGS).
c) Tax incentives: Over the years, the Government has been taking steps to bring down the total taxation level on electronics hardware.

Applicant for the purpose of the Scheme is a company registered in India, proposing to manufacture goods covered under Target Segments in India, and making an application for seeking approval under the Scheme. The applicant can operate new or existing manufacturing facility(ies) to manufacture goods covered under the Target Segments (i.e. mobile phones and specified electronic components). The aforesaid manufacturing can be carried out at one or more locations in India.

Qualification Criteria for applicants under different Target Segments in the Scheme are as defined:

• For category Mobile Phones (Invoice Value INR 15,000 and above); Consolidated Global Manufacturing Revenue of the applicant (including its Group Companies), in the target segment, should be more than INR 10,000 Crore in the base year.
• For category Mobile Phones (Domestic Companies); Consolidated Global Manufacturing Revenue of the applicant (including its Group Companies), in the target segment, should be more than INR 100 Crore in the base year. Applicants under this category can only be Domestic Companies as defined in Para 2.25 of the Scheme Guidelines
• For Specified Electronic Components: Consolidated Global Manufacturing Revenue of the applicant (including its Group Companies), in the target segment, should be more than INR 50 Crore in the base year

In case the manufacturing revenue, in the target segment, of an entity (group company) is claimed and considered for two or more applicant companies, the manufacturing revenue of such entity in the target segment will be equally divided among the applicants that are claiming revenue of such entity. Only such share of manufacturing revenue in the target segment, that is obtained after division of manufacturing revenue of that entity (group company), will be considered for determining qualification for such applicant under the scheme.

If the Consolidated Global Manufacturing Revenue of the applicant company (including Group Companies) is available in a currency other than INR, the INR equivalent amount may be computed by applying an average of the exchange rate notified by the Reserve Bank of India as on the first day and last day of the reporting period.