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IT notifications on infrastructure facilities

Special Correspondent

The amenities include MRTS, semi-urban roads and subways

CHENNAI: Ten categories of facilities, most of them of relevance to urban centres, have been conferred the status of "infrastructure facility" for purposes of tax reliefs under Sec. 36 (1) (viii) of the Income-tax Act 1961.

The department, through another notification, has amended the conditions to be fulfilled by a public facility for being treated as an infrastructure facility.

Ten amenities

According to a notification dated July 20, 2006, issued by the Central Board of Direct Taxes (CBDT), the following ten amenities will be considered as infrastructure facility: inland container depot and container freight station notified under the Customs Act 1962; mass rapid transit system; expressways; intra-urban or semi-urban roads like ring roads or urban bypasses or flyovers; bus and truck terminals, subways, road dividers; bulk handling terminals developed or maintained or operated for development of rail system; and multilevel computerized car parking.

The IT Rules have been amended by another notification to stipulate that an infrastructure facility to be eligible for benefits under Sec.36 (1) (viii) should:

(1) be owned by a company registered in India or by a consortium of such companies or by an authority or a board or a corporation or any other body established or constituted under any Central or State Act;

(2) have entered into an agreement with the Central government or a State government or a local authority or any other statutory body for developing and/or operating and maintaining a new infrastructure facility similar in nature to an infrastructure facility referred to in the Explanation to Sec 80-IA (4) (i) of the Income Tax Act ; and

(3) have started or starts operating and maintaining such infrastructure facility on or after April 1, 1995.

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