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In relation to this incentive, 'qualifying project' means :-
a. a project undertaken by a company, in expanding, modernising or automating its
existing business in respect of manufacturing or processing of a product or any related
product within the same industry or in diversifying its existing business into any
related product within the same industry;
b. a project undertaken by a company which is participating in industrial adjustment
approved under Section 31A of the Promotion of Investments Act 1986, in expanding
its existing business or modernising its production techniques or processes; or
c. an agricultural project undertaken by a company in expanding, modernising or diversifying
its cultivation and farming business.
A definition of the word 'incurred' has also been introduced for RA purposes. This
definition borrows from that adopted for capital allowances purposes viz :-
Paragraph 46, Schedule 3 :-
in the case of a hire purchase, the capital portion of instalment payments madein
the basis period concerned; and
Paragraph 55, Schedule 3 :-
a. in the case of any expenditure incurred on the construction of a building,
the day on which that expenditure is incurred is the day on which the construction
of the building is completed and in the case of any expenditure incurred on the provision
of machinery or plant for the purposes of a business the day on which that expenditure
is incurred is the day on which the machinery or plant is capable of being used for
the purposes of the business; and
b. in any other case, the day on which the amount of any expenditure becomes
payable is the day on which that amount of expenditure is incurred:
Provided that, where a person incurs expenditure for the purposes of a business
of his which he is about to carry on, that expenditure shall be deemed to be incurred
when he commences to carry on the business.
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