Investment Promotion Scheme (IPS) - Scheme for Reimbursement of Stamp Duty

Investment Promotion Scheme (IPS): Scheme for Reimbursement of Stamp Duty helps new and existing industrial units in Dadra & Nagar Haveli and Daman & Diu by offering financial support through stamp duty refunds. This scheme encourages new manufacturing or service-based enterprises, as well as businesses planning expansion or diversification, to establish their roots and grow, ultimately boosting the local economy and creating jobs.

Investment Promotion Scheme (IPS) - Scheme for Reimbursement of Stamp Duty - Introduction

Investment Promotion Scheme (IPS): Scheme for Reimbursement of Stamp Duty, managed by the Department of Industries, U.T. Administration of DNH & DD, supports industrial growth by providing stamp duty refunds. This scheme forms a vital part of the broader Investment Promotion Scheme (IPS) framework.

Originally launched on 3rd July, 2015, for a five-year term, this scheme was extended starting 20th May, 2022, and remains operative until 19th May, 2027. Applications are now accepted through the National Single Window System (NSWS) portal of the U.T.

Objective of the Investment Promotion Scheme (IPS):

This scheme aims to provide essential incentives to the MSME sector, helping businesses thrive amid market challenges. By fostering a supportive environment, it aims to transform the U.T. into a specialized hub for MSMEs, promote women entrepreneurship, reduce local unemployment, and encourage industries to hire resident workers.

Objective of the Scheme for Reimbursement of Stamp Duty:

This specific sub-scheme facilitates land acquisition for new and expanding industrial units by reimbursing a portion of the stamp duty paid throughout the operative period of the scheme.

Key Information

Benefits

Eligible units can claim reimbursement on stamp duty based on their specific sector or location:

Note that the reimbursement can only be claimed after purchasing the required land and completing at least 25% of the necessary infrastructure development, as defined by the industrial park authorities.

Eligibility

To qualify for this scheme, the following criteria must be met:

• The unit should be a new manufacturing or service unit, or an existing one undergoing expansion or diversification within the MSME sector.
• The unit should have started commercial production between 20.05.2022 and 19.05.2027.
• The unit must be located within the U.T. of Dadra and Nagar Haveli & Daman and Diu.

Exclusions

If any similar financial incentive has already been availed under another scheme from the U.T. Administration, the unit is not eligible for reimbursement under this program.

Application Process

Online Registration

STEP 1 - Visit the official registration portal to create an account. Provide the required details, verify the email, and use the OTP (111111) sent to the registered mobile number for final verification. Once registered, login credentials are received through email.

Applying for the Scheme

STEP 2 - Login to the user dashboard on the official portal. Navigate to the Departments & Services tab, select District Industries Centre, and choose the option to apply for the Investment Promotion Scheme.

STEP 3 - Complete the Common Application Form, upload all required documents, and submit the application. As per the official District Industries Centre page, the Investment Promotion Scheme 2022 to 2027 application can also be filed through the National Single Window System (NSWS) portal for the U.T.

Need Help?

For support, contact the District Industries Centre at 0260-2260871 or 0260-2260310, or email dic-dd@nic.in. For technical portal issues, call 0260-2231885 or email ddegs-dd@nic.in.

Documents

Prepare the following documents to ensure a smooth application process:

1. Corporate Identification Number (CIN) or Taxpayer Identification Number (TIN).
2. Permanent Account Number (PAN).
3. Goods and Services Tax (GST) registration.
4. Relevant startup/Udyam registration or Industrial Entrepreneur Memorandum.
5. Proof of business structure, such as partnership deeds or incorporation certificates.
6. Sale deeds for owned land or registered lease agreements (minimum 5 years).
7. Electricity connection sanction and latest bill.
8. Authorization letter.
9. Consent to operate from the Pollution Control Committee.
10. Factory license.
11. Completed undertaking form.
12. Payment receipts of stamp duty.

References

For further reading, please refer to the official Scheme Guidelines and Frequently Asked Questions.

FAQ's

What is the purpose of this stamp duty reimbursement?

This scheme reduces the initial investment cost for businesses, encouraging industrial growth and local development by returning a percentage of paid stamp duty.

What reimbursement percentage do MSMEs get?

MSMEs are eligible for a 50% reimbursement of stamp duty.

Can my business unit, if not an MSME, apply for this?

Yes, non-MSME units can receive a 25% reimbursement on stamp duty.

Do units in industrial parks receive special benefits?

Yes, industrial units setting up within designated industrial parks receive a 50% reimbursement on stamp duty paid for their plots.

When am I eligible to receive the money?

The benefit can be claimed once the land has been fully purchased and at least 25% of the infrastructure required by the park management has been completed.

What happens if I received a subsidy from another scheme?

In that case, benefits under this specific scheme cannot be claimed to prevent duplication of incentives.

What if my business does not continue production for five years?

The government will recover the disbursed subsidy as arrears of land revenue if the unit ceases production before the required five-year period.

How does the government define expansion or diversification?

It typically involves an investment increase of at least 50% from the previous gross fixed capital investment, with 60% of that new investment going into plant and machinery.