The Government of India has provided motivation in the forms of various tax incentives in order to increase investment in the Research and Development sector. Incentives are generally available in respect of revenue and capital expenditures, which are incurred by the entities in carrying our R&D activities related to their businesses.
What Is Corporate Tax (R&D Tax)?
Eligibility for claiming relief
- The company claiming the relief should understand that the R & D project seeks to achieve an advance in overall knowledge or capability in the field of science and technology.
- The project must be related to the company's related or existing business.
- If a company is claiming tax relief under MSME scheme it must own any intellectual property that might arise from the project.
FAQ
Common Questions Our Customers Ask Us - Solved!
What are R&D cost that qualify relief?
Required If the company or project meets the necessary condition that it is eligible to claim tax relief on revenue expenditure i.e day to day business expenditures on assets such as-
1. Employees cost related to the employees directly involved in carrying out R&D excluding the consultants, agencies, workers or directors who have entered into a contract of employment.
2. Staff providers to whom the company is already paying and who are already engaged in the business of R&D.
3. Materials either consumable or transformable material which are used in carrying our R&D activity.
4. Clinical trial cost.
5. Computer software.
6. Subcontracted R&D expenditure.
When and how to claim R&D relief?
What are record keeping requirements?
Key strengths of BIATConsultant?
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