PREAMBLE
R&D CENTRES ELIGIBLE FOR APPROVAL
CONDITIONS SUBJECT TO WHICH APPROVAL IS GIVEN
DOCUMENTS REQUIRED FOR EXAMINATION OF APPLICATION BY DSIR
DOCUMENTS REQUIRED TO BE SUBMITTED FOR CERTIFICATION OF EXPENDITURE FOR DEDUCTION U/S 35(2AB)
PROCEDURE FOR APPROVAL
HOW TO APPLY FOR APPROVAL
HOW TO APPLY FOR CERTIFICATION OF EXPENDITURE U/S 35 (2AB)
TEXT OF SECTION 35(2AB) OF I.T. ACT, 1961(Annexure I)
PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY PART-II(Annexure II) SECTION 3, SUB-SECTION (ii) DATED 27.03.1998
FORM NO. 3CK (Application form for entering into an agreement with the Department of Scientific and Industrial Research for cooperation in in-house Research and Development facility and for audit of the accounts maintained for that facility.)
FORM NO. 3CL Report to be submitted by the prescribed authority to the Director General (Income-tax Exemptions) under section 35(2AB) of the Income-tax Act, 1961.
FORM NO. 3CM Order of approval of in-house research and development facility under section 35(2AB) of the Income-tax Act. 1961
ADDITIONAL INFORMATION REQUIRED BY DSIR FOR THE APPROVAL OF R&D FACILITY U/S 35(2AB) OF I.T. ACT (ANNEXURE III)
DETAILS OF IMPORTS MADE FOR R&D PURPOSES-APPENDIX 1 to ANNEXURE III
DETAILS OF R&D PROGRAMMES/PROJECTS IN PROGRESS-APPENDIX 2 to ANNEXURE III
ADDITIONAL INFORMATION TO BE SUBMITTED SEPARATELY FOR EACH R & D CENTRE APPROVED BY THE PRESCRIBED AUTHORITY U/S 35(2AB) of I.T. Act AT THE TIME OF CERTIFICATION OF THE EXPENDITURE BY SECRETARY DSIR AS PER FORM 3CL-ANNEXURE IV
DETAILS OF EXPENDITURE INCURRED ON R&D CENTRE/FACILITY APPROVED BY SECRETARY,DSIR U/S 35(2AB)

GUIDELINES FOR APPROVAL OF IN-HOUSE R&D CENTRES AND CERTIFICATION OF EXPENDITURE under section 35(2AB) of IT ACT 1961
PREAMBLE

1. In order to encourage R&D initiatives by industry, and to make R&D an attractive proposition, the Finance Bill 1997 introduced a sub-section (2AB) in Section 35 of the IT Act 1961. Text of this sub-section can be seen at Annexure-I of these guidelines. This sub-section provides for weighted tax deduction of a sum equal to one and one-fourth times of any expenditure incurred on scientific research (not being expenditure in the nature of cost of any land or building) in certain areas specified by section 35(2AB) of IT Act, by companies on in-house R&D centres, approved by the 'Prescribed Authority'.

2. Secretary, DSIR has been designated as the 'Prescribed Authority' for purposes of Section 35(2AB) of I.T. Act, as per rule 6 (1B), inserted vide Government of India, Department of Revenue’ Notification S.O 259(E) dated 27th March 1998 (fifth amendment rules), effective from 1st day of April 1998. The text of this notification can be seen at Annexure-II.

R&D CENTRES ELIGIBLE FOR APPROVAL

3. In-house R&D centres of companies, which satisfy the following conditions are eligible to apply for approval of the 'Prescribed Authority' :

The R&D centres are holding valid recognition by DSIR;
The R&D centres are exclusively engaged in research and development in one or more of the following areas :

- Drugs

- Pharmaceuticals

- Electronic equipment

- Computers

- Telecommunication equipment

- Chemicals, or

- Any other article or thing notified by the Central Board of Direct Taxes.

The in-house R&D centre should be located in a separate earmarked area/building and it should have exclusive R&D manpower of its own.

4. For the purpose of deciding whether the organisation/company which has applied for approval of the R&D centre u/s 35(2AB) of I.T.Act, 1961 falls in the above sectors, the following criteria will be applied:

The item manufactured by the company should be listed in the above categories as per Indian Trade Classification (based on Harmonized Commodity Description and Coding System) published by Government of India, Ministry of Commerce; and
The Administrative Ministry/Department of Government of India concerned with the item should be as follows:

-------------------------------------------------------------------------------------------------------

Administrative Ministry/Department

-------------------------------------------------------------------------------------------------------

Drugs & Pharmaceuticals	Department of Chemicals & Petrochemicals/Department of Biotechnology/Ministry of Health & Family Welfare
Chemicals	Department of Chemicals & Petrochemicals/Department of Fertilizers/*Ministry of Petroleum & Natural Gas
Electronic equipment,Computers	Department of Electronics
Telecommunication equipment	Department of Electronics/ Department of Telecommunications

R&D centres engaged in research in exploration, production extraction and transportation of crude oil and natural gas will not be eligible.

In case any new item is developed/proposed to be developed, the decision of the 'Prescribed Authority' on the category in which the new item falls will be final.

CONDITIONS SUBJECT TO WHICH APPROVAL IS GIVEN:

5. The approval is subject to the following conditions:

The company should have necessary valid permits / licences, if these are required, from statutory authorities for setting up the in-house R&D centre at the location where the R&D centre exists and the same should be renewed from time to time as required by the said authorities.
In case the company has applied to the Prescribed Authority for approval of more than one in-house R&D centre under section 35(2AB) of the I.T.Act, each of such centres should have a valid recognition by DSIR.
Company shall not claim deduction in respect of the expenditure written off under Section 35(2AB) under any other provision of the IT Act.
The company should also submit an undertaking as per Part C of Form No. 3CK to maintain separate accounts for each R&D centre approved under Section 35(2AB)
by the Prescribed Authority, and to get the accounts duly audited every year by an Auditor as defined in sub-section (2) of section 288 of the IT Act 1961.
The company should enter into an agreement with the ‘Prescribed Authority’ (Secretary, DSIR) for co-operation in such research and development facility and for audit of the accounts maintained for that facility, as per format given in Part B of Form 3CK.

Note: The word co-operation shall, inter-alia, mean that the first party shall be willing to undertake projects of national importance, as may be assigned to it by the Prescribed Authority, on its own, or in association with laboratories of CSIR, ICAR, ICMR, DRDO; DBT, DOE, M/O Environment, DOD, DAE, Department of Space, Universities, Colleges or any other public funded institution(s). The First Party would be free to exploit the results of such R&D projects, subject however, to any conditions which may be imposed by Government of India, in view of national security or in public interest".
The audited accounts for each year maintained separately for each approved centre shall be furnished to the Secretary, Department of Scientific & Industrial Research by 31st day of October of the succeeding year, along with information as per Annexure-IV of the Guidelines.
Assets acquired and products, if any emanating out of R&D work done in approved facility, shall not be disposed of without approval of the Secretary, DSIR. Sales realisation arising out of the assets sold shall be offset against the R&D expenditure of the R&D Centre claimed under section 35(2AB) for the year in which such sales realisation accrues under section 35(2AB) of IT Act, 1961. Expenditure claimed for deduction under the sub-section shall be reduced to that extent.
The R&D facility should not relate purely to market research, sales promotion, quality control, testing, commercial production, style changes, routine data collection or activities of a like nature.
Expenditures, which are directly identifiable with approved R&D facility only, shall be eligible for the weighted tax deduction. However, expenditure in R&D on utilities which are supplied from a common source which also services areas of the plant other than R&D may be admissible, provided they are metered/measured and subject to certification by a Chartered Accountant.
Expenditure on manpower from departments, other than R&D centre, such as manufacturing, quality control, tool room etc. incurred on such functions as attending meetings providing advice / directions, ascertaining customer choice/response to new products under development and other liaison work shall not qualify for deduction under section 35(2AB) of I.T. Act 1961.
Grants/Gifts, donations, presents and payments obtained by the company for sponsored research in the approved in-house R&D centres shall be shown as credit to the R&D accounts for the purpose of Section 35(2AB) of I.T. Act, 1961, and the R&D expenditure claimed for deduction under the sub-section shall be reduced to that extent.
Expenditure of general nature, such as, expenditure on production, maintenance and quality control departments, manufacturing overheads/ depreciation/ interest/ lease rentals on manufacturing/ quality control equipment, manpower expenditure in manufacturing/ service departments, head office expenditure, expenditure on security, guest house and canteen and other overheads of common nature, shall not be admissible under Section 35(2AB) of I.T. Act.
The approval by the ‘Prescribed Authority’ of the R&D facility for weighted tax deduction shall be subject to the provisions of I.T. Act, as amended from time to time.

DOCUMENTS REQUIRED FOR EXAMINATION OF APPLICATION BY DSIR

The following documents are required to be submitted to the Secretary, DSIR in 3 sets.
Applications for approval u/s 35(2AB) in Form 3CK separately, for each R&D Centre for which approval is sought.
Agreement as per Part B and Undertaking as per Part C of Form 3CK, signed by the Managing Director of the company separate for each R&D Centre for which approval is sought.
Additional information as per Annexure-III. (separate for each R&D Centre for which approval is sought)
Annual Report of the company for the last 3 years.

DOCUMENTS REQUIRED TO BE SUBMITTED FOR CERTIFICATION OF EXPENDITURE FOR DEDUCTION U/S 35(2AB)

For certification of R&D expenditure, incurred in a financial year falling in the approved period, the following documents are required to be submitted in 3 sets to the Secretary, DSIR by 31st October of the succeeding year:

Information as per Annexure-IV, separately for each R&D Centre approved u/s 35 (2AB) of IT Act, 1961.
Details of expenditure incurred on R&D centre as per Appendix-I to Annexure-IV along with Auditor's certificate, separately for each R&D Centre approved u/s 35 (2AB) of IT Act, 1961.
Annual report of the company for the relevant financial year.

PROCEDURE FOR APPROVAL

The application for approval of R&D centres under section 35(2AB) shall be examined in DSIR and the decision of the Prescribed Authority will be communicated in Form 3CM within sixty days of the date of receipt of application in DSIR. The approval will be given for a maximum period of 3 years. The application for further approval will be submitted as indicated in para "6" above, three months before the expiry of the approval period.

9. The audited accounts for each financial year, falling in the approved period submitted to DSIR along with additional information,as indicated in para 6 of these guidelines will be examined by DSIR and the decision of the Prescribed Authority will be communicated within 4 months to the Director General of Income Tax (Exemptions), Calcutta, in Form 3CL.

10. DSIR shall provide a reasonable opportunity of being heard to companies before rejecting their application(s) for approvals/certification of expenditure under section 35(2AB) of I.T. Act 1961.

HOW TO APPLY FOR APPROVAL

11. The application for recognition should be submitted to the Secretary, Department of Scientific and Industrial Research, Technology Bhawan, New Mehrauli Road, New Delhi-110016. The envelope carrying the application shall be marked "Application for approval u/s 35 (2AB)". All documents indicated in para "6" of the guidelines shall be enclosed along with the application. Envelope carrying the application shall be marked "Application for Approval of R&D Centre u/s 35 (2AB)".

HOW TO APPLY FOR CERTIFICATION OF EXPENDITURE U/S 35 (2AB)

Applications for certification of R&D expenditure incurred on an in-house R&D centre approved by "Prescribed Authority" under Section 35(2AB) during a financial year falling in the approved period shall be submitted by 31st October of the succeeding year enclosing all information and documents as mentioned in para "7" of these guidelines to Secretary, DSIR on the address mentioned in para "11" of these guidelines. Envelope carrying the application shall be marked "Application for Certification of Expenditure u/s 35 (2AB)".
Weighted tax deduction u/s 35(2AB) are admissible starting from the Assessment year beginning 1^st April 1998. As per the Finance (No.2) Bill, 1998 - No deductions shall be allowed in respect of the expenditure which is incurred after 31^st day of March 2000.

Annexure-I

TEXT OF SECTION 35(2AB) OF I.T. ACT, 1961

Where a company engaged in the business of manufacture or production of any drugs, pharmaceuticals, electronic equipment, computers, telecommunication equipment, chemicals or any other article or thing notified by the Board incurs any expenditure on scientific research (not being expenditure in the nature of cost of any land or building) on in-house research and development facility as approved by the prescribed authority, then, there shall be allowed a deduction of a sum equal to one and one fourth times of the expenditure so incurred.
No deduction shall be allowed in respect of the expenditure mentioned in clause (1) under any other provision of this Act.
No Company shall be entitled for deduction under clause (1) unless it enters into an agreement with the prescribed authority for co-operation in such research and development facility and for audit of the accounts maintained for that facility.
The prescribed authority shall submit its report in relation to the approval of the said facility to the Director General in such form and within such time as may be prescribed.
No deduction shall be allowed in respect of the expenditure referred to in clause (1) which is incurred after the 31^st day of March, 2000.

Annexure-II

PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY PART-II,
SECTION 3, SUB-SECTION (ii) DATED 27.03.1998

F.No. 142/23/97-TPL
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES

NEW DELHI, the 27th. March, 1998

S.O. 259 (E) In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes, hereby makes the following rules :-

1. (1) These rules may be called the Income-tax ( Fifth ) Amendment Rules,

1998.

(2) They shall come into force with effect from the first day of April, 1998.

2. In the Income-tax rules, 1962,

(A) in rule 6,-

(a) after sub-rule(1A), the following sub-rule shall be inserted, namely :-

"(1B) For the purposes of sub-section (2AB) of section 35, the prescribed authority shall be the Secretary, Department of Scientific and Industrial Research.";

(b) after sub-rule(3), the following sub-rule shall be inserted, namely :-

"(4) The application required to be furnished by a company under sub-section(2AB) of section 35 shall be in Form No.3CK.";

"(5A) The prescribed authority shall, if he is satisfied that the conditions provided in this rule and in sub-section (2AB) of section 35 of the Act are fulfilled, pass an order in writing in Form No.3CM:

Provided that a reasonable opportunity of being heard shall be granted to the company before rejecting an application:

Provided further that an order under this rule shall be passed within two months of the receipt of application under sub-rule (4)."

(d) after sub-rule(7), the following sub-rule shall be inserted namely :-

"(7A) Approval of expenditure incurred on in-house research and development facility by a company under sub-section (2AB) of section 35 shall be subject to the following conditions, namely :-

(a) The facility should not relate purely to market research, sales promotion, quality control, testing, commercial production, style changes, routine data collection or activities of a like nature;

(b) The prescribed. authority shall submit its report in relation to the approval of in-house Research and Development facility in Form No. 3CL to the Director General (Income Tax Exemptions) within sixty days of its granting approval;

(c) The company shall maintain a separate account for each approved facility; which shall be audited annually and a copy thereof shall be furnished to the Secretary, Department of Scientific and Industrial Research by 31st day of October of each succeeding year;

Explanation:- For the purposes of this sub-rule the expression "audited" means the audit of accounts by an accountant, as defined in the Explanation below sub-section (2) of section 288 of the Income-tax Act, 1961.

(d) Assets acquired in respect of development of scientific research and development facility shall not be disposed off without the approval of the Secretary, Department of Scientific and Industrial Research";

(B) in Appendix II, after Form 3CJ the following Forms shall be inserted, namely:-

FORM NO. 3CK

Application form for entering into an agreement with the Department of Scientific and Industrial Research for cooperation in in-house Research and Development facility and for audit of the accounts maintained for that facility.

PART A

1Name and Address of the registered office of the company including Telex/Fax/Phone numbers

2Permanent Account Number (PAN) of the company

3Please specify the nature and Business/activity of the company-Manufacture/production of –

Drugs
Pharmaceuticals
Electronic Equipments
Computers
Telecommunications Equipments
Chemicals
Any other article or thing notified under sub-section (2AB) of section 35

(please specify)

4Annual production of the eligible products of the company during the past three years-

5Annual expenditure on scientific research of the company during the past three years, giving break-up of expenditure on land and buildings.

6 Please give details of nature of existing in-house Research and Development facilities including the address of the in-house Research and Development facility.

7 Registration number, date and validity of recognition granted by Department of Scientific and Industrial Research to the in-house Research and Development centre of the company.

8 Proposed objectives of scientific research contemplated by the company.

PART B

AGREEMENT

Whereas,....................................(hereinafter referred to as First Party) and the Department Of Scientific and Industrial Research (hereinafter referred to as Second Party), have decided to enter into an agreement, that-

the First Party shall maintain an in-house Research and Development facility to be approved by the Second Party,
the above Research and Development facility shall be exclusively used by the First Party to carry out scientific research relating to manufacture or production of any drugs, pharmaceuticals, electronic equipments, computers, telecommunication equipments, chemicals or any other article or thing notified by the Central Board of Direct Taxes, under sub-section (2AB) of section 35.
the First Party shall provide full co-operation to the Second Party in carrying out the Research and Development work relating to manufacture or production of any drugs, pharmaceuticals, electronic equipments, computers, telecommunication equipments, chemicals or any other article or thing notified by the Central Board of Direct Taxes under sub-section(2AB) of section 35.
the First Party shall maintain separate accounts for both revenue and capital expenditure on scientific research including that on in-house Research and Development facility, which shall be annually audited by an accountant as defined in section 288(2) of the Income-tax Act, 1961, and a copy of which has to be attached with the return of income under sub-section(1) of section 139 to claim deduction under section 35(2AB),
subject to the First Party meeting the conditions specified under sub-section(2AB) of section 35, and on being satisfied of the feasibility of the said in-house Research and Development facility in terms of its objectives and of the genuineness of the expenditure on said Research and Development facility by First Party, the Second Party shall submit its report in relation to the approval of the said facility to the Director General of Income-tax (Exemptions) within a period of sixty days from the date on which the First Party makes application in the Form No. 3CK.

Agreed on the........................day of............................month of.......................year.

First Party

_______________________

Signature of the Principal Officer of the company

(Name, Designation and Address)

Place...............

Date................

Witness

_______

Signature

(Name and address)

Place.................

Date..................

Second Party

_________________________

Signature of/on behalf of the Secretary, Department of Scientific & Industrial Research

Place.................

Date..................

Witness

________

signature

(Name and address)

Place..................

Date...................

PART C

Certified that the above information is true to the best of our knowledge and belief.

We undertake to:

maintain separate accounts for both revenue and capital expenditure on scientific research including that on in-house Research and Development facility, which shall be annually audited by an accountant as defined in sub-section (2) of section 288 of the Income-tax Act, 1961, and a copy of which has to be attached with the return of income under sub-section(1) of section 139 to claim deduction under sub-section(2AB) of section 35;
submit annual progress reports to the Secretary, Department of Scientific and Industrial Research;
render full co-operation to the in carrying-out the Research and Development work relating to manufacture or production of any drugs, pharmaceuticals, electronic equipments, computers, telecommunication equipments, chemicals or any other article or thing notified by the Central Board of Direct Taxes under sub-section (2AB) of section 35; and
assets acquired by the approved facility will be utilized only for the approved purpose and shall not be disposed off without the approval of the Secretary, Department of Scientific and Industrial Research.

-------------------------------------

Signature of the Principal Officer of the company

(Name, Designation and address)

Place……………………

Date……………………

Notes:

Six sets of duly filled applications are to be submitted to the Secretary, Department of Scientific & Industrial Research.
Copy of the latest Annual Report along with Balance Sheet has to be enclosed.
Enclose a copy of DSIR recognition of the in-house (R&D) centre.

FORM No. 3CL

Report to be submitted by the prescribed authority to the Director General (Income-tax Exemptions) under section 35(2AB) of the Income-tax Act, 1961.

Name and Address of the registered office of the company including Telex/Fax/Phone numbers
Permanent Account Number (PAN) of the company Name and designation of the Principal Officer of the company
Nature of Business/activity of the company Manufacture/production of –
Drugs

Pharmaceuticals

Electronic Equipments

Computers

Telecommunications Equipments

Chemicals

Any other article or thing notified under sub-section (2AB) of section 35.

(please specify)
Annual production of the eligible products of the company during the past three years-
Proposed objectives of scientific research contemplated by the company.
Whether the nature of the business is related to the proposed objectives of the scientific research contemplated by the company.
Details of the nature of existing in-house Research and Development facilities specifying whether the in-house Research and Development facility is adequate for carrying out scientific research.
Whether recognition granted to the in-house Research and Development centre of the company by Department of Scientific and Industrial Research.
Total cost of in-house research facility, giving break-up of expenditure on land and buildings (ASSESSMENT YEAR ________)
Whether agreement for co-operation and Research and Development facility and for audit of the accounts maintained for that facility entered into.

Certified that the above information is true to the best of our knowledge and belief.

--------------------------------------

Signature of Secretary, DSIR

Place : ....................

Date : .................….

FORM NO. 3CM

Order of approval of in-house research and development
facility under section 35(2AB) of the Income-tax Act. 1961

Name, Address and PAN of the company
Nature of the business of the company – Manufacture/production of article or thing
Objectives of the scientific research to be conducted by in-house Research and Development facility
Address at which such Research & Development facility is located
Ref. No. and Date of the application

The above Research & Development facility is approved for the purpose of section 35(2AB), subject to the conditions underlined therein.

Place :…………………..

Date : …………………... …………………………………………

(Signature)

(Name)

Secretary, DSIR

(Seal)

File No..………………

Order No……………..

Copy to:

(1) Company

(2) The Director General ( Income-tax Exemption)

ANNEXURE-III

ADDITIONAL INFORMATION REQUIRED BY DSIR
FOR THE APPROVAL OF R&D FACILITY U/S 35(2AB) OF I.T. ACT
(To be filled up separately for each R&D centre for which approval of the Prescribed Authority is sought)

PART-A

1. Name of the Company:

2. Address:

Head Office:
(with Telex No. & Telegraphic address)
Delhi Office (with Telephone No.):
Email Address:
Factory/Factories:
Location of R&D Laboratory(ies):
recognised by DSIR
Location of R&D Laboratory(ies):
for which approval U/s 35(2AB) is applied for

3. Nature of Business :

[Please indicate which of the items listed in Section
35(2AB) of I.T. Act are produced/ manufactured by
the Company along with the classification number as
per Indian Trade Classification (harmonised
commodity description and coding system)]

4. Company Structure:

Public/Private/Co-operative/Joint Sector/:
Proprietary/Partnership concern/NRI
supported firm/100% EOU
Whether Foreign Equity Participation ?:
Please give name of foreign equity
participant and percentage thereof.
Names of Directors on the Board/:
Proprietors (attach a separate list)

5. Capital Structure :

Paid-up Capital:
Copy of last Annual Report and :
statements of accounts
(Please attach separately)

6. Category of the firm:

Small Scale Unit:
Medium Scale Unit:
Large Scale Unit:

7. Administrative Ministry concerned :

8. (a) Technical Collaboration, if any :-

Sl.No.

Product

Name & address of the

Technical Collaborator

History of

Collaboration

1.

2.

3.

4.

N.B. Under Col. 4, Please indicate years of approval(s) including extensions and the date of expiry of existing Collaboration agreements.

b) Details of R&D collaboration entered into/ applied for :

9. Annual turnover for the last 3 years (year-wise) :

10.Main products manufactured :

Sl.No.

Product

Capacity licensed

If licensing is

Applicable

Capacity Installed

Yearly Production ( 3 years)

11.Total manpower employed by the company including those in R&D

Scientific & Technical Personnel having :
graduate degree in engineering/technology
or Master’s degree in Science
Administrative (non-technical) :
Others (including workmen) :

Total :

B. RESEARCH & DEVELOPMENT

Details of the recognition of In-house R&D Centre

Year of DSIR recognition granted initially :
and its validity period
Current recognition letter No. and :
its validity period
Break in recognition, if any :

Main Objectives of the R&D Programmes :
Whether R&D establishment is housed in a :
separate area/ building inside/outside the
factory premises

15. (a) Are the R&D activities separate from
production and quality control ?
(b)Are separate accounts maintained for :
R&D expenditure ?, If so the financial :
year from which the separate accounts are
maintained ?
(c)Approx. floor area of the R&D unit. :

16. Changes if any, since the application of recognition/renewal was made :

Manpower :

Floor area :

R&D and pilot plant facilities :

17. List of equipment and imported materials procured for R&D purposes.
(Please attach separate list indicating their cost and sources as per Appendix-I)

Total gross book value of indigenous :
R&D equipment as at the end of the
last financial year

Total gross book value of imported R&D :
equipment as at the end of last financial
year (Year-wise for last 3 years)

Gross cumulative value of R&D assets :
as on date

Gross cumulative value of all quality :
control and testing facilities/equipment
(other than R&D facilities) as on date.

18. (a) Name and Designation of R&D Head :

Bio-data of 10 top R&D personnel giving following details
(please attach as separate sheet)

Name :
Designation :
Qualification :
Date of appointment :
Total annual emoluments :
Experience :

19. R&D projects in progress :
(please give details as per proforma at Appendix-2)

20. R&D projects proposed during the next three years. :
(Please give details as per proforma at Appendix-3)

21. Details of R&D achievements during the last 3 years.
(Please enclose photographs of new items developed, plants/pilot
plant set up based on your own R&D) :

New Products developed :
New processes developed :
Improvement in existing production :
processes
Energy conservation :
Pollution control :
Import substitution :
(indicate items developed and foreign exchange earned)
Seminars/symposia attended by R&D staff :
(attach a separate sheet giving details)
Number of papers published :
(attach reprints if available)
Number of R&D personnel who attended :
R&D training programmes
(Give details in a separate sheet).

j Awards if any won (Give Details) :

22. Patents filed in India or abroad during the last 3 years :

Sl.No.

Product/Process

Name of the Country

Year

Patent No.

23. Whether any of the new technologies developed have been

Commercialised by you :

Sl.No.

Technology

Year

1.

2.

3.

b.Exported :

Sl.No.

Technology

Year

Exported to

Party

Country

1.

2.

3.

4.

5.

24. Expenditure on R&D (including staff salary)
Please furnish year-wise figures for the past three years (actuals), current year (budgeted) and
estimated for the next three years.

Particulars

Year-wise for Past three years

Current year

Next three

Years (Yearwise)

(Actuals)

(Budgeted)

(Estimated)

Capital
(i) Land

(ii) Building

(iii) Equipment

Total (Capital)

Recurring
Total (a+b)
Foreign exchange of (c)

(i) Capital

(ii) Recurring

(iii) Total [d(i)+d(ii)]

25. Indicate the total R&D expenditure year-wise inclusive of staff salary for the past 3 years as in 23 ‘C’ and express the same as a percentage of total turnover:

Sl.No.

Year

Total R&D

Expenditure

Annual Turnover

Percentage

1.

2.

3.

4.

5.

1.

2.

3.

26. Please indicate income-tax rebate allowed, if any, :
on R&D expenditure during the past three years

27. Manpower employed on R&D (existing) :

Category

Full-time on R&D

(Number)

Scientists
Engineers
Technicians
Others

Total

28. Educational status of R&D personnel (existing)

Qualifications

Full-time on R&D

(Number)

Doctorate Degree
Master’s Degree
Graduates
Diploma Holders
Others

Total

29. Proposed recruitment of R&D personnel during the next three years

Category

1

2

3

4

Doctorate Degree
Master’s Degree
Graduates
Diploma Holders
Others

Total

30.(a) Have you obtained any assistance/purchased :
know-how from NRDC or any of the National
laboratories/Universities/IITs/ other institutions
during the last 3 years ? If so,please give details
along with year and source.

(b) Whether any of the items of R&D work in :
progress or proposed by you is being done
elsewhere in country ? If so,please furnish
details :

(c)Have you applied to DSIR for any of the :
following; if so, please furnish details :

(i) Certificate for claiming accelerated :
depreciation allowance on Plant
and machinery set up based on
indigenous R&D.

(ii)Certificate for claiming Price :
Control exemption of bulk drugs
produced from basic stage through
indigenous R&D.

(iii)Financial support for R&D :
programmes.

(iv)Any other assistance :
I certify that all the particulars furnished above are correct and complete to the best of my knowledge and belief.

Date : Signature
Place : (To be signed by M.D/Chairman
or Head of the Organisation)
Name :
Designation :
Full Address :
Tel. Numbers :

APPENDIX 1 to ANNEXURE III

DETAILS OF IMPORTS MADE FOR R&D PURPOSES

CAPITAL GOODS (LIST)

Sl.No

Year of Import

Description

CIF Value

How utilized

RAW MATERIALS (LIST)

Sl.No

Year of Import

Description

CIF Value

How utilized

OTHERS (LIST)

Sl.No

Year of Import

Description

CIF Value

How utilized

APPENDIX 2 to ANNEXURE III

DETAILS OF R&D PROGRAMMES/PROJECTS IN PROGRESS

S.No	Title & Scope of the R&D Project	Name of the Project Leader	Year in which started	Duration of the Project	Estimated Project Cost¶				Remarks
S.No	Title & Scope of the R&D Project	Name of the Project Leader	Year in which started	Duration of the Project	Capital	Recurring	Total	F.E	Remarks
1.	2.	3.	4.	5.	6.	7.	8.	9.	10.

Note : Please enclose a write-up on progress so far and R&D work planned for future under the project

¶ Please reconcile with your R&D expenditure as per item 24 (Part ‘B’ of the application)

APPENDIX 3 to ANNEXURE III

DETAILS OF PROPOSED R&D WORK

(FOR THE NEXT THREE YEARS)

DETAILS OF PROPOSED R&D WORK

(FOR THE NEXT THREE YEARS)

Year	Serial No	Title & Scope of the project	Name of the project leader proposed	Duration of the Project	Total estimated Project Cost				List of specialised equipment required to be purchased and indicate their cost	List of any Special raw material required with cost	Remarks (indicate specific reasons if any, for proposing the R&D projects)
					Capital	Recurring	Total	F.E
1.	2.	3.	4.	5.	6.	7.	8.	9.

Annexure-IV

Additional Information to be submitted separately for each R & D Centre approved by the Prescribed Authority U/S 35(2AB) of I.T. Act at the time of certification of the expenditure by secretary DSIR as per form 3CL

Accounting Year: Assessment Year:

A brief note on progress of each of the projects shown in application to Prescribed Authority at the time of approval. Any changes with regard to the scope of the projects as originally envisaged and the manpower working on the project may be highlighted.
Details of any additional projects taken up during the year.
Details of changes if any in the R&D infrastructure/and staff along with bio-data of any new R&D staff recruited and qualification-wise break-up of existing staff.
Details of R&D achievements and technologies commercialised during the year.
Details of patents obtained and/or filed during the year.
Details of any other changes in the approved R&D centre.
Details of R&D expenditure certified by the auditor as per Appendix-I to this Annexure.

I certify that the above details are correct as per my knowledge and belief.

Signature of the Managing Director

Date:

Place:

Appendix-I to Annexure-IV

Details of expenditure incurred on R&D centre/facility
approved by Secretary, DSIR u/s 35(2AB)

1. Assessment Year:2.Financial Year:

3. Location of the R&D facility:

4. Details of expenditure: (in Rs. Lakhs)

A. (i) Land

(ii) Buildings

B. (i) Capital Equipment (attach a separate
sheet giving item-wise break-up of items costing more than Rs. 1 lakh)

(ii) Salaries/wages

(including perquisites/other benefits; attach a list of persons along with designation, whose salary has been charged to R&D account along with salaries and other benefits paid.)

(iii) Material/Consumables/spares
(Give item-wise details of items costing more
than Rs. 50,000/- each in separate sheet)

(iv) Utilities§

Steam
compressed air
water
electricity
Any others (specify)

(v) Any other expenditure directly related to R&D.
(Give item-wise break-up of expenditure
more than Rs. 1 lakh in separate sheet)

Total expenditure B(i)to(v)eligible U/S 35(2AB)

C. Total expenditure on the approved R&D centre. (A + B)

D. Details of amounts received by the R&D Centre in cash and kind for:

Commercial sale of prototypes
Donations/payments for sponsored research programmes
Others (specify)

E. Net amount chargeable to R&D expenditure (C – D)

I certify that above expenditure claimed are as per the guidelines issued by DSIR and correct to the best of my knowledge and belief.

Signature of the Managing Director

Date :

Place:

AUDITOR'S CERTIFICATE

I have audited the accounts of the in-house R&D Centre of M/s _______________________________ located at _______________________ which is approved U/S 35(2AB) by the Prescribed Authority (Secretary, DSIR).

I certify that:

The company has maintained separate accounts for the R&D Centre approved by DSIR U/S 35(2AB)
The accounts have been satisfactorily maintained. The expenditure certified are also in consonance with DSIR guidelines.
The firm has extended full co-operation to me in carrying out the audit of the accounts of the R&D Centre

The expenditure reported at `4’ above is correct to the best of my knowledge and belief as per the result of the audit of the approved R&D Centre carried out by me.

Signature & Seal of the Auditor

Date :

Place: