PAYMENT OF R&D CESS ON IMPORT OF TECHNOLOGY IN INDIA


Dated 04th June 2012

R&D Cess is required to be paid by importers of technology in INDIA in terms of any foreign collaboration agreement. The precise terms and conditions in this regard is specified in the R&D Cess Act ,1986.
RELEVANT EXTRACTS FROM SECTIONS/CLAUSES OF R&D CESS ACT, 1986 (AS AMENDED IN 1995) AND R&D CESS RULES 1996 .
1. Rate of CESS – Under Section (3) of the said Act, a CESS @ 5% is levied on all payments made towards the import of technology for the purpose of levy of CESS, “payment” shall include:

• Payment made towards import of technology as approved by the Central Government in terms of any foreign collaboration agreement, or approved in accordance with the Industrial Policy of the Government of India, in force, from time to time;
• Payment made towards the cost of drawings and designs in terms of any foreign collaboration agreement as approved by the Central Government or approved in accordance with the Industrial Policy of the Government of India, in force, from time to time;
• Payment made to foreign collaborators or to any other person for or in connection with deputation of technical personal to India in terms of any foreign collaboration agreement, in accordance with the approval granted by the Central Government or approved in accordance with the Industrial Policy of the Government of India, in force, from time to time;
• Any other payment made towards import of technology approved by the Central Government.

  1. Challan and Head of Account for Remittance
    The fee payable can be deposited through Challan Form TR-6 (form enclosed), with Reserve Bank of India or State Bank of India, Union Bank of India (authorized Branches) under Central Government Account (Receipt & Payment) Rules, 1983 under following head of account:

Major Head – 0045 – Other Taxes & Duties on Commodities and Services.

Minor Head – 117 – Receipts under R&D CESS Act, 1986.

Accounts Officer :- Pay & Accounts Office Department of Science & Technology,
A-Wing, Ground Floor, Vishwakarma Bhavan,
Shaheed Jit Singh Marg,
New Delhi – 110 016

  1. Statistical and other information to be submitted to Technology Development Board:
    Under Section 8 of the R&D CESS Act read with Rule 5 of R&D CESS Rules, 1996, the industrial concern is required to furnish statistical and other information to the Secretary, Technology Development Board, Technology Bhavan, New Mehrauli Road, New Delhi – 110016 in the prescribed format, within a period of 30 days from the date of entering into the agreement.

SOURCE: GOVT. OF INDIA, Ministry of Finance

 

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