Rule 39 sets the application to the National Council for Vocational Education and Training in Form No. 22, the review and recommendation steps, notification in Form No. 23 for up to three tax years, and revocation, for skill development projects under section 47(1)(b).
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Rules 2026 · Rule 39
R&D / agricultural extension / skill development (range 29–40)
Rules 22-48
Eligibility (sub-rule 1). The project is undertaken by an eligible company, in a separate facility in a training institute.
Application (sub-rules 2 to 4). Before starting, the eligible company applies in Form No. 22 to the National Council for Vocational Education and Training, with a copy and acknowledgement to the jurisdictional Commissioner. The application carries a letter of concurrence from the training institute, a detailed note on the project, and details of expected expenditure and completion date.
Defects (sub-rules 5 to 8). The National Council intimates a defect before one month from the end of the month of receipt; the applicant removes it within one month from the end of the month the intimation is served; if not, the Council recommends treating the application as invalid and the Board, if satisfied, may so order.
Review and decision (sub-rules 9 to 12). For a complete application the Council may inquire, call for documents, and send its recommendation to the Board within two months from the end of the month it was received. The jurisdictional Commissioner sends a recommendation to the Council within one month from the end of the month the copy was received, after considering the applicant's compliance with the Act. If the Council recommends approval, the Board issues a notification in Form No. 23 within two months from the end of the quarter in which it receives the Council's report, subject to the conditions in rule 40 or others the Board thinks fit, effective for a period not exceeding three tax years. If the Council recommends rejection, the Board rejects the application.
Renewal and revocation (sub-rules 13 to 15). If satisfied with the project's activities, the Board may notify it for a further period in consultation with the National Council. The Board may revoke the notification, after a reasonable opportunity of being heard, if the eligible company or the training institute has ceased its activities or its activities are not genuine, or are not carried out according to the Act, this rule, rule 40 or the notification conditions. A copy of any notification, approval, rejection or cancellation goes to the applicant, the National Council, the training institute and the jurisdictional Commissioner.