Subsidy Documentation
Till now, we have discussed the Importance of Subsidy Planning, Type of Subsidy, Parameters of Subsidy and Planning Phase of Subsidy.
Now the turn on “Subsidy Documentation”.
Not having proper documentation is a major cause of subsidy rejection. Since the budget of Govts has limited but the Claiming Amount of Subsidy has exceeded from such budget limit. In that situation, most of application has been rejected due to not having proper documentation.
So, along with proper subsidy planning we have to ensure the proper documentation in lieu of subsidy and incentives. It has been observed by us during subsidy filling and processing that most of business units are not aware on this subject and they have dropped their claimed just in absence of documentation.
We have listed herewith the details of documents that need to be managed for maximizing the subsidy. These are as:
1. Business Registration Documents Require for Business Subsidy Planning:
One of business subsidy planning Ensure the basic registration of Business Units such as MSME, GST, Firm Registration, Startup Registration, LLP/Company Registration etc.
2. Land Related Documents:
Since Site location has played a very vital role in subsidy planning. So, line up the land related document very carefully such as Title Deed/Zmanbandi/Intkal/Sizra.
If land is taken on lease, then Registered Lease Deed. (Note that lease deed period should be as per the norms of applicable subsidy)
Apart from the land revenue documents, ensure Land Conversion NoC or CLU or any other applicable NoC of PWD/NHAI or Approved MAP or Pollution NOC etc.
3. One of most Important Point for Business Subsidy Planning Detailed Project Report:
(Business Planning) It is a very common and prominent document. So, it should be prepared considering all connected points of Banker and Govt. Subsidy Scheme norms.
4. Own Fund:
Ensure proper infusion of own fund or investment as required. It will be a basic benchmark for sanction any bank loan or other subsidy amount.
5. Bank Loan Sanction letter:
If You are planning (Business Planning) for Credit Linked Subsidy Scheme then you need to manage Bank related documents such as Bank Loan Sanction Letter, Bank Appraisal Note, Loan Account Statement, Current Account Statement, Banker Certification etc.
6. Fixed Capital Expenditure:
Line up the proper arrangement of Bill related to Fixed Capital Expenditure such as Building & Other Civil work, Quotations and Bill of Plant & Machinery, Electricity Connection etc. Ensure that all Invoice should be GST Supported. It is highly recommended to keep proper books of accounts.
7. Certification Documents:
Ensure the proper certification documents such as Approved Site Layout Map, Cost Estimation, Architect Certification for Completion of Project, CA Certificate for Project Cost, Banker Certification for Deposition of Margin Money or any align certification documents as applicable business nature specific.
8. First Sale Bill:
Since most of subsidy are line up as per the date of Commencement of business. So, it should take care at the time of issuing First Sale Invoice.
Since it is not the final list of documentation required in subsidy planning. It may be deviate as per the need and nature of project line up. We have tried to share here a common documentation list. So, it is highly recommended to businessmen to take the consultancy services of a Subsidy Consultant.
Your Subsidy Planning eBook
For, more information on this you are requested to contact our KIP subsidy helpline on Mail – sales@kipfinancial.com and contact Number- +918683898080
KIP Financial Consultancy Pvt. Ltd.
DSB – 38, Red Square Market, Hisar – 125001 (HR)
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