R&D / agricultural extension / skill development (range 29–40)

Who approves. The head of the National Laboratory, University or Indian Institute of Technology, as the case may be, for section 45(3)(c)(i) to (iii) (sub-rule 1); the Principal Scientific Adviser to the Government of India for section 45(3)(c)(iv) (sub-rule 2). The Adviser may authorise an officer not below the rank of Deputy Secretary to issue the order after approving the programme (sub-rule 5).

Application and order. A sponsor applies in Form No. 7 (sub-rule 3). If satisfied that the programme is feasible, the authority passes a written order in Form No. 8 within two months from the end of the month of receipt, effective for a period not exceeding five tax years (sub-rule 4). The sponsor gets a reasonable opportunity of being heard before rejection (sub-rule 6).

Conditions (sub-rule 7).

• The programme must not relate purely to market research, sales promotion, quality control, testing, commercial production, style changes, routine data collection or similar activities.
• A separate account is kept for each approved programme, audited annually, with a copy to the sponsor's jurisdictional Chief Commissioner by the return due date under section 263(1)(c).
• Reports to the Chief Commissioner: a progress and expenditure report in Form No. 10 within three months of approval; a completion certificate with a copy of the research report, jointly by the sponsor and the institution; and the audited statement of accounts within six months of completion.
• The authority cannot extend the duration or approve an escalation in costs.
• Assets acquired for the programme cannot be disposed of without the Chief Commissioner's approval.

Receipt, renewal and definitions. The institution issues a receipt for payments in Form No. 9 (sub-rule 8). The sponsor may apply for a fresh order at least three months before the effective period ends (sub-rule 9). "Audited" means audit by an accountant under section 515(3)(b); "sponsor" is a person who applies in Form No. 7 (sub-rule 10).