Section Fifth Schedule

THE FIFTH SCHEDULE

EXEMPTION FROM SUPER-TAX IN RESPECT OF CERTAIN DIVIDENDS

[See section 99(1)(iv)]

1. Super-tax shall not be payable by a company in respect of any dividend which is assessable for the assessment year commencing on the 1st day of April, 1962, and for the subsequent assessment years, and which is declared-

(a) by an Indian company formed and registered after the 31st day of March, 1952, and before the 1st day of April, 1967, where-

(1) the Central Government is satisfied that the Indian company is wholly or mainly engaged in an industry for the manufacture or production of any one or more of the articles specified in any of the items in Part A of this Schedule; and

(2) the income of the Indian company would have been exempt under the provisions of section 84, if the provisions of that section had been applicable thereto; or

(b) by an Indian company formed and registered after the 31st day of March, 1961, and before the 1st day of April, 1967, where-

(1) the Central Government is satisfied that the Indian company is wholly or mainly engaged in an industry for the manufacture or production of any one or more of the articles specified in any of the items in Part B of this Schedule; and

(2) the income of the Indian company would have been exempt under the provisions of section 84, if the provisions of that section had been applicable thereto.

2. Super-tax shall not be payable by a company in respect of any dividend which is assessable for the assessment year commencing on the 1st day of April, 1962, and for the subsequent assessment years and which is payable to it in respect of any fresh capital raised by an Indian company by public subscription-

(a) after the 28th day of February, 1953, and before the 1st day of April, 1967, for the purpose of increasing the production of, or starting a separate unit for the manufacture or production of, any one or more of the articles specified in any of the items in Part A of this Schedule; and

(b) after the 31st day of March, 1961 and before the 1st day of April, 1967, for the purpose of increasing the production of, or starting a separate unit for the manufacture or production of, any one or more of the articles specified in any of the items in Part B of this Schedule.

3. Where by any Act any of the items in Part A or Part B of this Schedule is repealed, then, notwithstanding such repeal, any exemption conferred by rule 1 or rule 2 shall continue to be available for the dividends declared by any Indian company engaged in any industry referred to in the item so repealed—

(i) in the cases referred to in rule 1, so long as such dividends relate to the previous year in which the Indian company is incorporated and the nine previous years immediately succeeding;

(ii) in the cases referred to in rule 2, so long as such dividends relate to the previous year in which the fresh capital was raised and the nine previous years immediately succeeding; and

(iii) in the case of an Indian company which is wholly or mainly engaged in, or, as the case may be, which runs a separate unit for the manufacture or production of articles specified in any item so repealed and also in any item which continues to be in force, the exemption from super-tax referred to in rule 1 or rule 2 in respect of such part of the dividends declared by the Indian company in respect of any previous year later than the nine previous years referred to in clause (i) or clause (ii) as is attributable to the profits and gains derived from the manufacture or production of any article specified in the item so repealed shall lapse.

PART A

1. Coal including coke and other derivatives;

2. Iron and Steel (metal), ferro-alloys and special steels;

3. Motor and aviation fuel, kerosene, crude oils and synthetic oils (not being oil exploration);

4. Chemicals (other than fertilisers) of the following types;

(a) Inorganic heavy chemicals;

(b) Organic heavy chemicals;

(c) Fine chemicals (including photographic chemicals);

(d) Synthetic rubber;

(e) Man-made fibres, other than viscose rayon;

(f) Coke oven by-products;

(g) Coal-tar distillation products like naphthalene, anthra-cene and the like;

(h) Explosives, including gun-powder and safety fuses;

5. Inorganic, organic and mixed fertilisers;

6. Industrial machinery of the following types (including gear wheels and parts thereof, boilers and steam generating plants):-

A. Major items of specialised equipment used in specific industries:

(i) Textile machinery (such as frames, carding machines, powerlooms and the like) including textile accessories;

(ii) Jute machinery;

(iii) Rayon machinery;

(iv) Sugar machinery;

(v) Tea machinery;

(vi) Mining machinery;

(vii) Metallurgical machinery;

(viii) Cement machinery;

(ix) Chemical machinery;

(x) Pharmaceuticals machinery;

(xi) Paper machinery;

B. General items of machinery used in several industries, such as the equipment required for various 'unit processes':

(i) Size reduction equipment—crushers, ball mills and the like;

(ii) Conveying equipment-bucket elevators, skip hoists, cranes, derricks and the like;

(iii) Size separation units-screens, classifiers and the like;

(iv) Mixers and reactors-kneading mills, turbo mixers and the like;

(v) Filtration equipment-filter presses, rotary filters and the like;

(vi) Centrifugal machines;

(vii) Evaporators;

(viii) Distillation equipment;

(ix) Crystallisers;

(x) Driers;

(xi) Power driven pumps-reciprocating, centrifugal and the like;

(xii) Air and gas compressors and vacuum pipes (excluding electrical furnaces);

(xiii) Refrigeration plants for industrial use;

(xiv) Fire fighting equipment and appliances including fire engines;

C. Other items of industrial Machinery:

(i) Ball, roller and tapered bearings;

(ii) Speed reduction units;

(iii) Grinding wheels and abrasives.

7. Machinery and equipment for the generation, transmission and distribution of electric energy;

8. Non-ferrous metals including alloys;

9. Paper including newsprint and paper board;

10. Internal combustion engines;

11. Power-driven pumps;

12. Automobiles;

13. Tractors;

14. Cement;

15. Electric Motors;

16. Locomotives;

17. Rolling Stock;

18. Machine Tools;

19. Agriculture Implements;

20. Ferro-manganese;

21. Dye-stuffs;

22. Refractories; and

23. Steel pipes and spun iron pipes.

PART B

1. Steel, castings;

2. Steel forgings provided the undertaking is equipped with forges of two-ton hammer and above;

3. Pulp machinery;

4. Pulp for paper and artificial fibres;

5. Dies and jigs;

6. Precision tools;

7. Industrial Instruments:

(i) Water meters, steam meters and electricity meters;

(ii) Indicating, recording and regulating devices for pressure, temperature, rate of flow, weights and levels.

8. Scientific Instruments;

9. Sealed compressor units for the refrigeration industry;

10. Earth-moving equipment;

11. Boilers;

12. Electrical Railway Signalling Equipment;

13. Printing Machinery;

14. Organic intermediates for dyestuffs, drugs and plastics; and

15. Component parts of each of the articles mentioned in items numbers 6, 7, 10, 12 and 13 of Part A and items numbers 10 and 11 of Part B, that is to say, such parts as are essential for the working of the machinery referred to in the items aforesaid and have been given for that purpose some special shape or quality which would not be essential for their use for any other purpose and are in complete finished form and ready for fitment.

 

 

[As amended by Finance Act, 1963]