- There is no Sales Tax for inter State transactions against From C and Form D. Rate of Sales Tax on production of Form CC (as notified by the Government of Himachal Pradesh) by the end customer is 1%.
- Subject to the provisions of VAT Act and Rules, there is no General Sales Tax on IT products up to 31.03.2007.
- As per special package of incentives granted by the Government of India for Himachal Pradesh, there is 100% outright excise duty exemption for 10 years from the date of commencement of commercial production (for units coming in production by 31.03.2007).
- There is 100% income tax exemption for initial five years and thereafter a rebate of 30% is given for a period of five years from the date of commencement of commercial production.
- All other industrial incentives of thrust industry as per the Industrial are also available to IT units.
- It is pertinent to mention here that the above mentioned tax incentives are available for all industries irrespective of their market. While in case of SEZ, tax incentives are given only for exports, even domestic sales are eligible for tax incentives in case of Himachal Pradesh. Thus, in one sense, entire Himachal Pradesh is a ‘virtual SEZ’.
- While there is a sunset clause of March 31,2009 for availing Income Tax exemption under STPI scheme elsewhere in the country, there is a general exemption/concession on Income Tax under section 80-IC of Income Tax Act in Himachal Pradesh for a period of 10 years for IT companies commencing their operations by March 31,2012.