HMSI gets tax concession from Karnataka government

One among the biggies in the Indian two wheeler industry, Honda Motorcycle and Scooter India (HMSI) who is looking forward to have a big investment in Karnataka(Narsapur in Kolar district.) is been offered a tax concession by the Karnataka government.

HSMI is investing about Rs 1,300 crore in the State to set up a two-wheeler plant with an annual capacity of 1.8 million scooters on 96 acres of Government allotted land. This will provide a large number of job opportunities for the local people.

The HSMI plans to offer 3,200 direct employment and another 15,000 as indirect employment when the plant is fully functional in 16 to 18 months time. The also cleared the Government's move to offer 40 per cent value added tax (VAT) payable by the company to the Government as interest-free loan for up to 10 years.

"The company will start repaying the loan from the 11th year. And the cabinet has also cleared 95 per cent reimbursement of CST for a period of five years." said Mr. S. Suresh Kumar, Minister for Law and Parliamentary Affairs, Justice and Municipal.

He added "The State Government has decided to wave off 100 per cent of land registration cost as well. If the company fails to adhere to the conditions put forth by the government, then the will be withdrawn."
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Last updated on 20-02-2012. Published on 20-02-2012.
Published by Bikes4Sale in category News
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