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GOVERNMENT OF INDIA Ministry of: DefenceDEPARTMENT OF: EX-SERVICEMEN`S WELFARE RAJYA SABHA UNSTARRED QUESTION NO 2588 TO BE ANSWERED ON 22.12.2015 Scheme for re skilling ex-servicemen
2588. Shri Rajeev Chandrasekhar Will the Minister of DEFENCE be pleased to state:-(a) whether Government has undertaken any scheme to re-skill the ex-servicemen/ veterans to ensure their absorption into the job market after their retirement, if so, the details thereof;(b) if not, the reasons therefor;(c) whether Government has plans to collaborate with the private sector in re-skilling the veterans;(d) if so, how many private enterprises have partnered with Directorate General Resettlement for the same; and(e) whether Government is planning to provide tax exemptions for private companies engaged in re-skilling and employing veterans / ex-servicemen?
Answer MINISTER OF STATE IN THE MINISTRY OF DEFENCE (RAO INDERJIT SINGH)
(a) Yes, Sir. An Memorandum of Undertaking (MoU) between Ministry of Defence and Ministry of Skill Development Entrepreneurship has been signed. One of the goals of this MoU is to successfully roll out National Skill Qualified Framework (NSQF) compliant skill training to Ex-Servicemen and to train and provide gainful employment to Ex-Servicemen and their dependents in the next five years with private sector collaboration as well. The MoU is currently at the implementation stage.(b) Does not arise.(c) Yes, Sir.(d) Yes, Sir. Directorate General of Resettlement (DGR) has partnered with Confederation of Indian Industry (CII) for resettlement of Ex-Servicemen. DGR is also partnering with various Sector Skill Councils under NSDC for re-skilling the veterans. (e) There are already certain tax exemptions under Service Tax and Income Tax for private companies engaged in skill development. Details are enclosed as Appendix “A”.APPENDIX-‘A’ IN RESPECT OF REPLY GIVEN IN PART 9e) OF RAJYA SABHA UNSTARRED QUESTION NO. 2588 FOR 22.12.2015 REGARDING SCHEME FOR RE-SKILLING EX-SERVICEMEN
TAX BENEFITS UNDER SKILL DEVELOPMENT
1. Service Tax Benefits:
As per the provisions of the Service Tax notifications, currently following categories of services are exempt from the service tax:
2. Section 35 CCD of Income Tax Act, 1961:
Under Section 35 CCD of the Income Tax Act a company can avail benefits of weighted tax deductions of 150 percent of the expenses (other than land or building) incurred on the skill development projects. The National Skill Development Agency (NSDA) has been mandated to process applications and to send its recommendations to Income Tax authorities for necessary actions.Eligibility:
Training Institute which are eligible to claim benefit under Section 35 CCD of income tax as defined in the guidelines is:
The definition of “Training Institute” as per the rule 6AAH(ii) of the IT Riles is:
“Training Institute means a training institute set up by the Central or State Government or a local authority or a training institute affiliated to National Council for Vocational Training or State Council for Vocational Training”.
This was later amended to include NSDA approved training institute also to be eligible under section 35 CCD apart from NCVT and SCVT.