By Mario Andree
Tata housing obtained five acres of land free of charge from the Urban Development Authority, as a goodwill gesture for agreeing to build 562 housing units on three acres of land adjoining the location, to relocate the families who occupied the land previously.
In a new gazette notification the Ministry of Investment Promotion identified Tata's US$ 429.5 million re-development and mixed development project as a Strategic Development Project under the SDP Act.
The ministry also has decided to grant the company a 16-year tax break for the project which would be completed within eight years from the May 2014, the date agreements were signed with BOI.
Accordingly, the company will be fully exempted from income tax for the first 10 years, other than sale of apartments which is accepted for six years, followed by 50% exemption of corporate tax for six years.
In addition, no withholding tax would be charged on interest for foreign loans, fees to consultants, management and royalty fees below three per cent of gross revenue and 1.5% of marketing fees and further incentives for management fees below 10%.
The company has been exempted from VAT, PAL, Excise Duty, CESS and NBT during the project implementation period of eight years.
Further, the company has been exempted from the payment of Construction Industry Guarantee Fund Levy to the contractors and subcontractors of the project company.
The project will be carried out by locally incorporated One-Colombo Project (Private) Limited.
At the initial stage the company would construct 562 housing and 100 shopping units to relocate those displaced by the land clearance. The relocation is expected to be completed within two-and-a-half years of commencement, followed by the second phase where the company would develop a mixed development project consisting of a 150-room city hotel, 1.1 million sq. ft. of residential apartments, 530,000 sq. ft. of commercial space and 115,000 sq. ft. of retail space.
www.ceylontoday.lk
Ceylon Finance Today: The Cabinet has identified the US$ 430 million mixed development project in Slave Island by India's Tata Housing, as a Strategic Development Project in a new gazette notification granting the company a 16 year tax break for the US$ 130 million foreign direct investment.
Tata housing obtained five acres of land free of charge from the Urban Development Authority, as a goodwill gesture for agreeing to build 562 housing units on three acres of land adjoining the location, to relocate the families who occupied the land previously.
In a new gazette notification the Ministry of Investment Promotion identified Tata's US$ 429.5 million re-development and mixed development project as a Strategic Development Project under the SDP Act.
The gazette highlighted that only US$ 130 million out of the US$ 429.5 million would come in the form of foreign direct investment.
The ministry also has decided to grant the company a 16-year tax break for the project which would be completed within eight years from the May 2014, the date agreements were signed with BOI.
Accordingly, the company will be fully exempted from income tax for the first 10 years, other than sale of apartments which is accepted for six years, followed by 50% exemption of corporate tax for six years.
In addition, no withholding tax would be charged on interest for foreign loans, fees to consultants, management and royalty fees below three per cent of gross revenue and 1.5% of marketing fees and further incentives for management fees below 10%.
The company has been exempted from VAT, PAL, Excise Duty, CESS and NBT during the project implementation period of eight years.
Further, the company has been exempted from the payment of Construction Industry Guarantee Fund Levy to the contractors and subcontractors of the project company.
The project will be carried out by locally incorporated One-Colombo Project (Private) Limited.
At the initial stage the company would construct 562 housing and 100 shopping units to relocate those displaced by the land clearance. The relocation is expected to be completed within two-and-a-half years of commencement, followed by the second phase where the company would develop a mixed development project consisting of a 150-room city hotel, 1.1 million sq. ft. of residential apartments, 530,000 sq. ft. of commercial space and 115,000 sq. ft. of retail space.
www.ceylontoday.lk
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