TaxTMI 
TaxTMI 
Prescribed conditions relating to maintenance of accounts, audit etc to be fulfilled by the approved in-house R&D facility
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....rescribed conditions relating to maintenance of accounts, audit etc to be fulfilled by the approved in-house R&D facility<br> Query (Issue) Started By: - Admin TMI Dated:- 28-2-2015 Last Reply Date:- 28-2-2015 Income Tax<br>Got 1 Reply<br>Income Tax<br>Question - What are the prescribed conditions relating to maintenance of accounts, audit etc to be fulfilled by the approved in-house RandD facili....
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....ty in Finance Bill 2015 ? Reply By Admin TMI: The Reply: Prescribed conditions relating to maintenance of accounts, audit etc to be fulfilled by the approved in-house RandD facility Under section 35(2AB) of the Act, weighted deduction of 200% is allowed to a company engaged in the business of biotechnology or manufacturing of goods (except items specified in Schedule-XI) for the expenditure....
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.... (not being expenditure in the nature of cost of any land or building) incurred on scientific research carried out in an approved in-house research and development facility. For availing this weighted deduction, the company is required to enter into an agreement with the Secretary, Department of Scientific and Industrial Research (DSIR) and also required to obtain his approval. The Secretary, DSIR....
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.... is required to send the report regarding approval to DGIT (Exemption) in prescribed Form who generally does not have jurisdiction over the assessee company. Further, the company is required to maintain separate books of account for approved RandD facility and is also required to get the account audited. However, the copy of audit report is required to be submitted to the DSIR only. The Comptrolle....
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....r and Auditor General of India in its report on performance audit of pharmaceuticals sector recommended for rationalisation of the provision relating to monitoring of this weighted deduction. In order to have a better and meaningful monitoring mechanism for weighted deduction allowed under section 35 (2AB) of the Act, it is proposed to amend the provisions of section 35(2AB) of the Act to provide ....
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....that deduction under the said section shall be allowed if the company enters into an agreement with the prescribed authority for cooperation in such research and development facility and fulfills prescribed conditions with regard to maintenance and audit of accounts and also furnishes prescribed reports. It is also proposed to insert reference of the Principal Chief Commissioner or Chief Commissio....
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....ner in section 35(2AA) and section 35(2AB) of the Act so that the report referred to therein may be sent to the Principal Chief Commissioner or Chief Commissioner having jurisdiction over the company claiming the weighted deduction under the said section. These amendments will take effect from 1st April, 2016 and will, accordingly, apply in relation to the assessment year 2016-17 and subsequent a....
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....ssessment years<br> Discussion Forum - Knowledge Sharing ....