Information Technology- IT Policy 2002- Modalities on defining IT Companies for extending concessions specified in the IT Policy 2002 - Orders Issued.
INFORMATION TECHNOLOGY DEPARTMENT
1. G.O.Ms.No.22, IT department dated 5.9.2000
2. G.O.Ms.No.15, IT department dated 22.5.2003
3. From IG Registration D.O. letter No.58895/C2/03, dated 08.12.2003
4. From MD, ELCOT letter Rc No.GM IT P&D/ELCOT/565/2003, dated 14.1.2004.
Orders have been issued in the G.O. first read above, prescribing conditions for certification of IT buildings for the purpose of consideration of reimbursement of Stamp Duty, in pursuance of the IT Policy (1997).
2. In the G.O. second read above, various concessions have been announced for IT Companies in section 6.1 and 6.2 of the IT Policy 2002, which provides for upfront relaxation of 50% Stamp Duty for IT Park as well as property to be used by the IT Companies. Clause 5 of the IT Policy 2002 defines the IT Companies.
3. In the letter third read above, the IG Registration has requested the Government to specify the criteria by which IT units would qualify for eligibility to such concessions.
4. In the letter fourth read above, the MD, ELCOT has brought to the notice of the Government that a number of builders have come forward to put up IT buildings to meet present demand and that for this purpose, the definitions of IT buildings needs to be formulated for setting standards in future verifications.
5. The Government have examined the proposals of IG Registration and MD, ELCOT carefully and order for 50% exemption on Stamp Duty and Registration fees is given to IT Companies/Industries at the time of purchase of land/building subject to the following conditions:
a. The IT Building should have feeder grid supply with adequate back up capacity
b. The IT Building should have provision for Housing remote Switching Unit of a Communication Provider with redundancy. The bandwidth should not be less than 2 Mbps.
c. The IT Building should also have a satellite/Micro Wave back up data connectivity.
d. The Plot area on which such IT Building is located must be a minimum of 2000 square meters.
e. The Companies occupying the IT Building should be IT companies as defined in IT Policy 2002 of Tamil Nadu. 80% of the built up area should be occupied by IT/ITES units. For this purpose a registration with STPI/EOU/appropriate license with Communication Provider will be adequate. For other domestic companies. ELCOT will formulate a quarterly reporting system in line with STPI reporting system or any suitable system of reporting.
7. The Government also stipulate the following conditions for availing the 50% exemption on Stamp Duty & Registration fees by the IT Companies in Tamil Nadu .
a) The concession will be applicable for the first transaction by the IT/ITES company only. The concessions will be extended till March 2007.
b) In view of the stand taken in the IT Policy 2002, the concession extended in G.O.(Ms.) No.20, IT Department, dated 21.6.1999 giving 100% reimbursement to IT units will automatically stand withdrawn.
c) The time duration for setting up the IT building will be 12 months.
d) ELCOT will be the certifying authority. For the purpose of certification, the IT/ITES companies should execute undertakings infavour of Managing Director, ELCOT in the formats ( Annexure - A&B) annexed to this order. Based on ELCOT's certification the Registering Officer will extend the concessions.
e) This order of exemption will be applicable to documents presented after the date of notification issued by Commercial Taxes Department.
f) In case of failure on the part of IT Companies /Industries in fulfilling these conditions, ELCOT will make arrangements for recovery of duty/fee by way of forfeiture of bank guarantee which will be obtained while extending 50% exemption of Stamp Duty and Registration fee.
7. Commercial Tax Department is requested to take immediate action to issue Gazette Notification for extending the concessions to IT companies / Industries.
8. This order issues with the concurrence of CT Department vide their U.O. No.13387/J1/04-1, CT Department, dated 5.7.2004 and Finance Department U.O. No.1831/FS/P/04, dated 08.07.2004
(BY ORDER OF THE GOVERNOR)
The Secretary to Government, CT Department, Chennai-9.
All Departments of Secretariat, Chennai-9.
Commissioner of Municipal Administration
Commissioner of Commercial Taxes, Chennai.
The Director of Rural Development, Chennai-15
The IG Registration, Chennai-28
The Managing Director, ELCOT, No.692, Anna Salai, Nandanam, Chennai-35
Director of Information & Public Relations, Chennai-9
Deputy Director General, NIC, E 2A Rajaji Bhavan, Besant Nagar, Chennai-90
NIC, Secretariat, Chennai-9.
Chief Minister's Office/ Secretary to C.M. I , II & III, Chennai-9
P.S. to Secretary, IT Department, Chennai-9
The Senior PA to Minister (L,IT&E), Chennai-9
/Forwarded / By order/
Annexure to G.O.Ms.No.15, IT Department, dated 21.7.2004.
The Managing Director,
No.692, Anna Salai,
Ref: 1. CMDA approval No.
2. Our undertaking with ELCOT dated
I / We hereby declare that IT-MSB/ITP constructed vide CMDA approval referred above has been allotted and occupied only by Information Technology Companies and not by non Information Technology Companies as referred in the G.O.Ms. No.----------------------------- as listed below (or in the annexure):
Total Built up Area :
Total Area occupied :
We hereby declare that the above Information is correct and any changes thereof in the occupancy will be reported to ELCOT ---------------
Annexure to G.O.Ms.No.15, IT Department, dated 21.7.2004.
This Deed of Undertaking executed at Chennai on the -------th Day of ------------(month) - (Year)by --------- (Applicant Name) S/o. -------------aged -------years and representing as its Authorized signatory of ------------------------------------- having its office at ------------------ and residing at ------------------- ---------------------- in favour of M/s. Electronics Corporation of Tamil Nadu Limited, a Government of Tamil Nadu undertaking registered under the Companies Act 1956 and having its Registered office at 2nd Floor, MHU Complex, 692, Anna Salai, Nandanam, Chennai- 600 035 herein after referred to as ELCOT as follows:
I / We the applicants propose to construct an IT Building at Survey No.----------- (Location / Address). The land consists of ------------------------ grounds / acres / sq.M /sq.ft or thereabouts.
I / We undertake that the proposed construction will be utilized by Information Technology Companies as referred in G.O.Ms. No. --------- IT department, dated: ----------------
I / We hereby undertake to furnish bank guarantee to the extent of concession availed on Stamp duty and Registration fee. In case of failure on our part to fulfill the condition, the bank guarantee will be liable to be forfeited by ELCOT.