III. FISCAL AND FINANCIAL POLICIES
21. Specialised furniture/fixtures which are appendages to Capital Goods, will be permitted to be imported as Capital Goods.
22. Specialised air-conditioning equipment declared through a LUT self-declaration as equipment required for clean-air environment, will be permitted to be imported as Capital Goods.
23. All Data Communication products including specified Telecom products as per Annexure-IVB manufactured in the country and supplied to Data Communication service providers including DOT and the licensed operators of Telecom Authority will be granted deemed export status by adding the word, 'Data Communication' in para 10.2(G) in the EXIM Policy.
24. All IT Products and their parts imported for manufacturing will be exempted from special additional duty (SAD) with immediate effect.
25. Full (100 percent) MODVAT Credit will be allowed for all S-BIT Units.
26. A clarification will be issued by CBEC that services tax is not applicable on IT products and IT services
27. All S-BIT units manufacturing IT products including Electronic Components and Data communication equipment/parts will be exempted from Income Tax for a period of six years, provided the unit commences production by 1 January 2000. This exemption applies also for existing units who convert into S-BIT units by 1 January 2000.
28. Import of gold bonding wire upto 2 mil thickness will be allowed duty free and without need for SIL by Semiconductor/Integrated Circuits manufacturers, provided its price by weight is atleast 15 percent above the prevailing price of 24 Carat gold.