Section 56A

[56A. Exemption from super-tax of certain dividends.—(1) No super-tax shall be payable by a company on such part of its total income as consists of dividends received from an Indian company formed and registered after the 31st day of March, 1952, where—

(i) 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 following, namely:—

(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:—

(i) Inorganic heavy chemicals;

(ii) Organic heavy chemicals;

((iii) Fine chemicals including photographic chemicals;

(iv) Synthetic rubber;

(v) Man-made fibres other than viscose rayon;

(vi) Coke oven by-products;

(vii) Coal-tar distillation products like naphthalene, anthracene and the like;

(viii) Explosives including gun-powder and safety fuses;

(4A) Inorganic, organic and mixed fertilisers;

(5) 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, power-looms 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, ship 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;]

(6) Machinery and equipment for the generation, transmission and distribution of electric energy;

(7) Non-ferrous metals including alloys;

(8) Paper including newsprint and paper board;

(9) Internal combustion engines;

(10) Power-driven pumps;

[(11) Automobiles;

(12) Tractors;

(13) Cement;

(14) Electric motors;

(15) Locomotives;

(16) Rolling stock;

(17) Machine tools;

(18) Agricultural implements;

(19) Ferro-manganese;

(20) Dye-stuffs;]

[(21) Refractories;]

as specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 (LXV of 1951), and

(ii) the income of the Indian company would have been exempt under the operation of section 15C if the provisions of that section had been applicable thereto.

(2) The exemption specified in sub-section (1) shall apply also to dividends payable to a company in respect of any fresh capital raised by an Indian company after the 28th day of February, 1953, by public subscription for the purpose of increasing the production of, or starting a separate unit of, any one or more of the items specified in clause (i) of sub-section (1).]

 

 

 

[As amended up to date]