Save Money, Get your R&D Recognized by DSIR, Govt of India

E: letstalk@scinnovation.inT: +91-9962696204

W: www.scinnovation.in & www.dsir.in24*7 No.: 91-7303712300

We are Scinnovation With philosophy of “Scaling innovation” since 2005

Hello!

How can I Save Money?

◉Get your new or existing R&D / Technology Development Centre approved by Department of Science & Industrial Research (DSIR), Govt. of India as an In-house R&D centre

◉ Avail both direct and indirect tax benefits once your facility is approved by DSIR

◉This would lead to lower tax outgo, lower input cost and access to Govt. funding

What are the exact benefits?

Direct TaxSuper income tax deduction@ 200/150% of expenseincurred on R&D Capitalexpenses includingMachine, Computers, Othertangible assets

Indirect TaxCustoms & excise duty waiverfor both import or localpurchase of capital equipmentand consumables

Indirect TaxExcise duty exemption forproduct sold in India whichhave patent granted in twocountries out of India, USA,Japan & any country inEuropean Union for a period of3 years after approval

Non FinancialAccess to DSIR’s fundingschemes comprising ofgrants & soft loans

Non FinancialAccess to bidding for Govt.tenders and fundingprograms

Direct TaxSuper income tax deduction@200/150% of expenseincurred on R&D Operatingexpenses IncludingManpower & Raw material

“Numbers Matter”

S.No. Details

1 R&D expenses including capex and opex Rs 1cr Rs. 5cr Rs. 10Crs

2 F.Y. 2016-17 tax rate for Indian corporate including surcharge & cess and presumed for F.Y. 2017-18

34.61 34.61 34.61

3 200% deduction for R&D expenses including capexand opex for F.Y. 2016-17 2,00,00,000.00

10,00,00,000.00 20,00,00,000.00

4 Tax savings for F.Y. 2016-17 (in the form of lower tax outgo or increase in losses which can be carried forward for 8 years as per current Income Tax rule in India)

34,60,800.00 1,73,04,000.00 3,46,08,000.00

5 150% deduction for R&D expenses including capexand opex for F.Y. 2017-18 1,50,00,000.00

7,50,00,000.00 15,00,00,000.00

6 Tax savings for F.Y. 2017-18 (in the form of lower tax outgo or increase in losses which can be carried forward for 8 years as per current Income Tax rule in India)

17,30,400.00 86,52,000.00 1,73,04,000.00

7 Tax saving loss due to one month delay in decision making affect your bottom-line 1,44,200.00 7,21,000.00 14,42,000.00

Rs. 100 Expense

For every

Save Rs. 17

Total success!

Grant Rate of DSIR Recognition

Recognized 32%

Rejected 68%

Recognized 57%

Rejected43%

Recognized 51%

Rejected 49%

F/Y 2014-15 F/Y 2012-13

F/Y 2013-14

.......Meanwhile, Success rate of SCPL

100% Recognized*

Our process is easy

TURNKEY BASIS

SOLUTION

100% SUCCESS

DOCUMENT PREPRATION

& SUBMISSION

…………Effort Less Full Success With Single Point Of Contact

What is the Process?

Need to have a R&D plan from a 3-5 year

perspective

Gaps with regards to plan, premises, equipment &

manpower need to be filled

Need to have a full time R&D Head

Submission of application & site

inspection leading to approval as in-house

R&D centre

Need to have a dedicated area in your premises for

conducting R&D

Need to have R&D Achievements from R&D

department

Some Challenging cases

Helped a large India public listed company with global operations get accreditation from Govt. of India for their R&D set up after rejection of their application the first time

Worked with a small manufacturing company to identify their R&D activities from regular manufacturing processes, get accredited by GoI for their R&D and avail tax benefits

Assisted a large India public listed company go through the process of renewal of their accreditation for R&D at multiple locations and make a fresh application for a new set up in record time

Provided a Spanish company to get the Recognition which got appreciation from DSIR

Establishing the linkage between your business goals and R&D for DSIR, your board, media & other stakeholders

Site visit to understand R&D operations and identification of gaps which needs to be addressed

Orienting R&D Head towards expectations from DSIR towards the scheme

Preparation of a 3 to 5 years R&D plan

Preparation & submission of application

Responding to any queries raised & working towards receiving recognition from DSIR

Helping you maintain the status provided by DSIR which has a 3 year tenure from year of grant

How will Scinnovation help?

In rare case Scinnovation is not successful in getting you recognition from DSIR for your R&D centre in spite of best efforts, then we will reapply again without any addition cost

A proposal has to be submitted separately for each R&D centre whether it is located in the same city or in another city in India

It is our endeavor to ensure that we can make your R&D centre compliant for this scheme with zero or minimum investment but whatever minimum investment required to make you compliant will have to be borne by you

A proposal will be submitted once we are certain that your R&D centre meets the compliance required and the documentation is in place

We will not charge you travel and out of pocket expenses separately for this engagement (after evaluation visit)

Finer Points of the Scheme!

Our NCR

Office

Our Head Office

Our Chennai

office

Any questions ?You can find us at:◉ E: letstalk@scinnovation.in◉ T: +91-9962696204◉ W: www.scinnovation.in & www.dsir.in◉ 24*7 No.: 91-7303712300

Thanks!

Suggested Reading Material

Our CEO’s Article on “why there are only 1800 Companies having DSIR Recognition” https://celebrateinnovation.wordpress.com/2016/05/19/why-there-are-only-1800-companies-

availing-rd-tax-benefits-in-india/

List of R&D centres approved by DSIR as on December 2016 availablehttp://www.dsir.gov.in/#files/direct/dir_rdi_dec16.html

Guidelines of recognition of In-House R&D centres: http://www.dsir.gov.in/#files/12plan/bird-crf/rdi.html

DSIR annual report for F.Y 2016-17 http://www.dsir.gov.in/#files/a_report/english/2016.html