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

Conditions.

• Books and audit (sub-rules 1 and 2). Separate books for the project, audited by an accountant under section 515(3)(b), with an audit report commenting on a true and fair view, genuineness of the project's activities, and fulfilment of the Act, rules and notification conditions.
• Existing employees (sub-rule 3). A project for existing employees is not eligible where their training commences after six months of recruitment.
• Eligible expenses (sub-rule 4). All expenses incurred wholly and exclusively for the eligible project, less the cost of any land or building and any expenditure reimbursed or reimbursable by anyone, directly or indirectly.
• Annual filing (sub-rule 5). On or before the return due date under section 263(1), the audited statement of accounts for the year with the audit report and the amount of deduction claimed under section 47(1)(b), to the jurisdictional Commissioner.

Reports on defaults (sub-rules 6 and 7). The Commissioner, after inquiries, reports to the Board for action under rule 39(14) where books are not separate or audited, documents are not furnished, the project has ceased or is not genuine, or conditions are not being followed. The National Council also sends its recommendation to the Board where it is not satisfied about the genuineness of the activities.

Definitions (sub-rule 8).

• "Eligible company" is a company engaged in manufacture or production of any article or thing other than those at serial numbers 1 and 2 of the list in the Thirteenth Schedule, or engaged in providing one of 31 listed services, ranging from accounting services and architect services through hospitality, logistics and transportation, retail marketing and telecom services to travel and tourism. The full list is in rule 40(8)(a)(ii) of the Rules.
• "National Council for Vocational Education and Training" is the Council constituted by the Ministry of Skill Development and Entrepreneurship by the notification the rule cites.
• "State Council for Vocational Training" is a State Council for training in vocational trades established by a State Government.
• "Training institute" is one set up by the Central Government, a State Government or a local authority; or affiliated to a State Council for Vocational Training; or affiliated to, approved by, or empanelled by the National Council; or affiliated to, approved by, or empanelled by the Central or a State Government and certified as having training standards equivalent to institutes affiliated to the National Council (or, for a State Government institute, a State Council).