DPIIT revises white goods PLI scheme: Beneficiary must get cost certificate for sales
Oct 11, 2023
Synopsis
The Department for Promotion of Industry and Internal Trade (DPIIT) said that the administrative ministry may also visit the manufacturing facilities to review the scheme's progress, and directly solicit feedback from the industry.
The government has revised the guidelines for the Rs 6,238 crore production-linked incentive scheme (PLI) for white goods as per which the companies selected under the programme will have to submit a certificate from a registered cost accountant with regard to related party sales and computation of the arm’s length price for availing benefits of the scheme.
The Department for Promotion of Industry and Internal Trade (DPIIT) said that the administrative ministry may also visit the manufacturing facilities to review the scheme's progress, and directly solicit feedback from the industry.
The white goods PLI is for domestic manufacturing of air conditioners and LED lights. Daikin, Panasonic, Havells and Syska, are among the beneficiaries of the scheme.
“Out of 64 selected beneficiaries, 15 beneficiaries, who have opted for the gestation period up to March 31, 2022, have started commercial production. Rest beneficiaries who have opted for Gestation period upto March 31, 2023 are at different stages of implementation,” the DPIIT said in a statement.
Aa per the revised guidelines, products sold to group company(ies) or used for captive consumption should be certified by a cost accountant, who is a member of the Institute of Cost and Management Accountants of India.
Similarly, the computation of the arm’s length price should be accompanied by a certificate from the cost accountant.
“Adoption of Cost-Plus method in place of CUP (comparable uncontrolled price) method for calculation of sales prices in case of captive consumption or supplies to group companies,” the department saidc, adding that this also required amendment in the definition of ‘Arm’ length’.
The revised guidelines also extend the deadline for filing claims from October 31 in the following financial year to which the claim pertains to January 15.
The department has increased the time limit by one year to three years to submit the details of the additional location with all relevant documents.
“In the event of any discrepancy observed between statutory compliances and records provided at the time of filing of claim(s) the applicant shall refund the excess incentive availed along with the interest,” it said.
The revisions were made based on the requests and suggestions received from various applicants and industry associations aimed to simplify the operation of the scheme. The DPIIT had earlier made the guidelines on June 4, 2021.
[The Economic Times]
