Question

Which of the following is/are a form of assistance given by the government to small industries?

• A. Exempt of sales tax
• B. Subsidy
• C. Tax holiday
• D. All of the above

Answer 1

The correct option is D All of the above

The rural industries project programme initiated by the Government of India was meant to develop small business units in select rural areas. Some of the common incentives offered are:

• Sales Tax: In all union territories, industries are exempted from sales tax, while some states extend exemption for 5 years period.
  
• Finance: Subsidy of 10-15 per cent is given for building capital assets. Loans are also offered at concessional rates.
  
• Tax holiday: Exemption from paying taxes for 5 or 10 years is given to industries established in backward, hilly and tribal areas.