25 January, 2016
Maharashtra’s Information Technology/ Information Technology Enabled Services Policy (IT/ITES) 2015
On August 25, 2015, the Government of Maharashtra has notified its new IT/ITES Policy, which is effective from July 1, 2015 (‘2015 Policy’) and is valid for five years. This policy aims to keep pace with global developments and to give a stimulus to the IT/ITES industry in the state of Maharashtra. Some of the salient features of the 2015 Policy and key amendments made to the erstwhile policies are as under:
- The 2015 Policy has amended the definition of ITES, which is now aligned with the definition provided under the Income Tax Rules, 1962.
- Up to 100% additional Floor Space Index (‘FSI’) over the base FSI may be granted to all registered public and private IT Parks, Animation, Visual Effects, Gaming And Comics (‘AVGC’) parks, IT SEZ or IT Parks in SEZs and to stand-alone units in public IT Parks that have been approved by the Directorate of Industries (whether set up under present or previous IT/ITES policies) and up to 200% additional FSI in case of parks that have an access road that is at least 18 metres in width. A pre- mium will be payable in relation to such excess FSI, depending on location.
- The 2015 Policy prescribes a penalty if a private IT park has availed additional FSI and its built-up space is being used for non-IT/ITES / commercial activities / any other activity not permitted as per the IT/ITES policy under which such park was approved. The penalty per day for such a breach is 0.3% of the prevailing ready reckoner value of the built-up area that has been found to be used for non-IT/ITES activities.
- Apart from some of the already existing infrastructural and fiscal benefits covered under the erstwhile IT/ITES Policy of 2009, the provision for the establishment of Integrated IT Townships has been added in the 2015 Policy.
- AVGC has been identified as a focus sector in the 2015 Policy.
For further information, please contact:
Zia Mody, Partner, AZB & Partners
zia.mody@azbpartners.com
