Date: 07.02.2009

No.VAT-2008/ ACT/Adm-9/ IPS/PSI-129/ B-182

Trade Circular No. 8 T of 2009

Sub: 1) Sanction and disbursement of Industrial Promotion Subsidy (IPS) to Mega Projects and Non-Mega Projects under PSI-2001 and PSI-2007.

2) Reconciliation of IPS by Sales Tax Department.

3) Procedure to be followed by the Department.

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Ref: 1) Government Resolution No.PSI-2108 / CR- 36 / Ind-8,

Mantralaya, Mumbai – 32, dated the 3rd December, 2008.

2) Government Resolution No.PSI-2108 / CR- 278 / Ind-8,

Mantralaya, Mumbai – 32, dated the 4th December, 2008.

Gentlemen /Sir /Madam,


1. The State Government had declared a new category of Mega Projects under the Package Scheme of Incentives (PSI) 2001 by Government Resolution, I.E. & L. D. dated 02.06.2005. The State Government has also declared the Industrial, Investment and Infrastructure Policy – 2006 so as to ensure sustained industrial growth, further improvement in the investment climate in the State and provide a global competitive edge to the State’s industry and promote employment and balanced regional development. The Policy envisages grant of a customized package of incentives to New Mega Projects. The provisions regarding grant of IPS to Non-Mega Projects are laid down in concerned PSI-2001 and PSI-2007.

2. Similarly, the issue of putting in place a mechanism for sanction and disbursement of Industrial Promotion Subsidy (IPS) for Mega Projects and Non-Mega Units under the Package Scheme of Incentives 2001 and Package Scheme of Incentives 2007 was also under consideration of the Government.

3. The Government has now laid down the procedure for sanction and disbursement of the IPS as per the two Government Resolutions mentioned above.

4. In the said Government Resolutions, there is a provision for re-conciliation of the IPS between the Industries Department and Sales Tax Department. It is further provided in the said Government Notification that the Sales Tax Department will issue an “Identification Certificate” to such eligible unit based on the Eligibility Certificate issued by the Implementing Agency.

5. As per the Government Resolutions, the Industries Department shall disburse 85% of the IPS claim based on the Application of the unit for sanction and disbursement of IPS. The remaining 15% of the IPS shall be disbursed after certification of taxes paid by the applicant; and reconciliation between the Sales Tax Department and the Industries Department. It is, therefore, necessary to carry out the assessment of every such unit in respect of the period covered by the application for sanction and disbursement of IPS. All the concerned officers are directed to carry out the assessment accordingly as per the provisions of law in order to verify that the claim of IPS relates only to products specified in the Eligibility Certificate.

6. It is decided that such eligible units will be granted Identification Certificate as per proforma enclosed. Such an Identification Certificate shall be issued to all Mega, Large and Medium Units by the Joint Commissioner of Sales Tax (HQ)2, Maharashtra State, Mumbai, D-I Wing, 9th Floor, Old Vikrikar Bhavan, Mazgaon, Mumbai -400 010. Whereas the Identification Certificate to Small Scale Units and Micro Units (Non-Mega Projects) shall be issued by the respective Joint Commissioner of Sales Tax (VATAdm.), Division, under whose jurisdiction such Small Scale or Micro Unit is situated.

7. The Industries Department has been requested to forward the copy of the Eligibility Certificate to the Sales Tax Department along with the following information: –

(a) Names and addresses of the Directors, Partners and Proprietors together with the list of addresses of all places of business of the said dealer.

(b) Telephone Nos., E-mail IDs and Web address of the eligible unit.

8. After receipt of Eligibility Certificate and the above mentioned information from the Industry Department, the Sales Tax Department shall issue the Identification Certificate on its own. There is no need for the eligible unit to separately make an application to the Sales Tax Department for grant of Identification Number.

9. The following numbering system may be followed for giving number to the Identification Certificate.

“Certificate No. TIN (12 Digits) _ _ _ _ _ / PSI-2001/ 2007/ Name of District/ Category (Mega/ LIS / MSI/ SSI) / No. _ _ _ __ _, dated: _________ ”

10. All concerned Joint Commissioner of Sales Tax (VAT-Adm.), should maintain record of Certificate issued as was being maintained for the purpose of the earlier Package Schemes of Incentives.

11. This Circular is clarificatory in nature. In case of any doubt the matter may be referred to this office for clarification.

12. You are requested to bring the contents of this Circular to the notice of the members of your Association.



Commissioner of Sales Tax,

Maharashtra State, Mumbai.


READ: (1) G. R. No._________ _________ , Industries Department

(2) Trade Circular, dated : ____________ ______.

Certificate No. TIN (12 Digits)_____________ ______/PSI- 2001/2007/ Name of District /

Category (Mega/ LIS/ MSI/ SSI)/No.____ _________ _, dated: ____________ _.

1. This is to certify that M/s. ____________ _________ ________, holder of MVAT TIN ____________ ____, CST TIN ____________ _________ _ located at ____________ _________ _ ____________ _________ _________ _________ _________ _________(Full address of Eligible Unit), is an eligible dealer for the purposes of the Package Scheme of incentives, 2001 / 2007.

2. This identification Certificate is for the purpose of the Package Scheme of Incentives 2001/ 2007.

3. In the event of cancellation or revocation of Eligibility Certificate for whatsoever reason this Certificate shall stand cancelled automatically.

4. The details of the Eligible Unit covered by present certificate are as under
Sr. No. Description Details

1 Name of the Eligible Unit

2 Address

3 Constitution

4 Class of Finished Goods

5 Description of Raw-Materials

6 Eligibility Certificate No. & Date

7 Amount of Industrial Promotion Subsidy sanctioned as per Eligibility Certificate

8 Validity Period

9 Category of Eligible Unit (Mega /Large Scale, SSI etc)

10 a. TIN _ __ _ _ _ _ _ _ _ _ _ (12 Digits)

b. Name of the District _ __ _ _ _ _ _ _ _

11 Identification No._ _ __ _ _ _

12 Name and Designation of the Authority issuing present Certificate.

Joint Commissioner of Sales Tax (VAT),

_ __ _ ___ , Division, _ _ __ _ _ _ _.

DVT/090206Identific ation Certificate under New COE under 2001, 2007 PSI/P-1/

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  1. baban says:

    i have invested rs.2.5 corores in one ssi unit now i am an going to expand that unit thats why i want details of `vat` subsidy

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