the research and levelupmenf cess bill, 1986 (to be/as introduced in 10k sab:tll!) 1 page 1, line 15,-!:d!: "section 4; 11 read-"!::ection 5; ii 2 page 3, line 10,-after "interest, ii' insert _ "it m~," page 4, -3 for lines 4 and 5, read ,--"thereafter have effect only in such modified form or be of no effect, as the ~ase may be; so, however, that any such modification or annulment 11 4 ,page 6, line 7,-!q!: "it has i1ot been ll ~_ "it is n'o\' 11 new dlillli· , £1av 5, 198~ \i aisakha 1 , 1908 (saka)  bid no 55 of 1916 the research and development cess bill, 1986 a billto provide for the levy and collectl:on of a cess on all payments made for the import oj technology for the purposes of encouraging /the commercial application of indigenously developed technology and for adapting imponed technology to wider domestv application and for matters connected therewith or incidental thereto be it enacted by parliament in the thirty-seventh year of the republic of india as follows:-1 (1) this act may be called the research and development cess act 1986 short title extent 5 (2) it extends to the whole of india except the state of jammu and and kashmir commen cement (3) it shall come into force on such date as the central government may by'notification in the offtcial gazette, appoint 2 in this act, unless the context otherwise requires-lieftnitiona (a) "cess" means the cess levied under ·section 3; 10 (b) "development bank" means the industrial development bank of india established under section 3 of the industrial development bank of india act, 1964; - 1801 19m 15 (c) "fund" me~nl'j th4;l veqture capital fund formed under section 4; (d) "import", in relation to any technology, means the bringing into india of, such technology from a place outside india; 18 of 1984 (e) "industrial concern" has the meaning assigned to it in clause (c) of section 2 of the industrial development bank of india act, 1964, and includes any other person in whose favour a foreign 5 collaboration involving the import of technology is approved by the central government;, (f) ~'prescribed" means prescribed by rules made under this act; (9) ''5pecified agency" means-10 a of 19u (i) the reserve bank of india constituted under the reserve bank of india act, 1934; or (ii) the state bank of india constituted under the state bank of india act, 1955; or 23 of 1955 (iii) such other bank or institution as may be specified in 15 this behalf by the central government; (h) "teehnology" means any special or technical knowledge or any special service required for any purpose whatsoever by an industrial concern under any foreign collaboration, and includes designs, drawings, publications and technical personnel ao 3 (1) there shall be levied and collected, for the purposes of this act, a cess at such rate not exceeding five per cent on all payments made towards the import of technology, as the central government may, from time totime, specify, by notification, in the official gazette levy and collection otceuon payments made towards importot technology (2) the cess shall be payable to the central government by an indus 25 trial concern, which imports technology, on or before making any payments towards such import and shall be paid by the industrial concern to any specified agency crediting proceeds 'ofceu to consolidated fund of india 4 the proceeds of the cess le,vied and collected under section 3 shall first be credited to the consolidated fund of india, and the' central gov- 30 ernment may, if parliament by appropriation made by law in this behalf so provides, pay to the development }3ank, from time to time, from out of such proceeds (after deducting the cost of collection), such sums of money as it may think fit for being utilised for the purposes of the fund venture capital fund 18 of 1984 5 (1) there shall be formed for the purposes of this act a fund to 35 be called the venture capital fund and such fund shall form part of the development assistance fund established by the development bank under section 14, of the indu:strial development bank of india act, 1964, and the provisions of chapter v of that act shall, save as otherwise expressly provided in this act, apply to such fund (2) there shall be cre,dited to the fund-(a) all amounts paid under section 4; (b) any amount given as grants by the central government for ~he purposes of this act; 45 , (c) any amount given to the fund from any other source; and (d) any income from investment of the amount in 'the fund,~ appucatlon of fund, • 'the fund shall be applied by the development barlk' to meet the expenditure incurred in connection with the' measures and facilities whicll; in the opinion 'of the development bank, are necessary or expedient to provide equity capital or any other form of financial 5 assistance to industrial concerns attempting 'commercial applications of indigenous technology or adapting imported technology to wider domestic applications ' - 7 notwithstanding anything contained in this act, if the central government is satisfied that it is necessary or expedient so to do in the power of central governmentto exempt in public interest, by notification in the official gazette and subject to such conditions, if any, as may be specified therein, exempt any industrial concern from the payment of the cess payable under this act for the import of such technology as may be specified in such notification 8 the development bank may require an industrial concern to 15 furnish, for the purposes of this act, such statistical and other information in such form and within such period as may be prescribed powertg call for inf'1rma- tion 9 (1) if any cess payable by an industrial concern is not paid on or before making payments towards the import of technology, it shall be deemed to be in arrears and the same shall be recovered by the deve-penalty for nonpayment ofee  go lopment bank in such manner as may be prescribed (2) the development bank may, after such inquiry as it deems fit, impose 01') the industrial concern, which is in arrears under sub-section (1), a penalty not exceeding five times the amount in arrears: provided that before imposing such penalty, such industrial concern g5 shall be given a reasonable opportunity of being heard, and if, after such hearing the development banik is satisfied that the default was for any good and sufficient reason, no penalty shall be imposed under this sub-section 10 (1) the central government may, by notification in the official 30 gazette, make rules for carrying out the provisions of this act power to make rules (2) in particular and without prejudice to the foregoing power, such rules may provide for the following matters, namely:-(a) the form in which and the period within which the information under section 8 may be furnil&hed; "  35 (b) the manner in which the arrears of cess may be recovered under sub-section (1) of section 9; (c) any other matter which is required ~o be, or may be, prescribed (3) every rule made under this section shall be laid, as soon as may 45 be after it is made" before each hou'se of parliament, while it is in session, for a total period of thirty days which may be comprised in one lession or in'two or more successive sessions, and ff, before the expiry of the session immediately following the session or the successive sessions aforesaid, both houses agree in making any modification in the rule or both houses agree that the rule should not be made, the rule shall the case may be; so, however, that any such modification or annulment thereafter have effect only in such modified form or be of no effect, as 5 shall be without prejudice to the validity of anything previously done under that rule  statement of objects and reasonsit was envisaged in the long term fiscal policy announced in december, 1985 that a clresearch and development celli" would be imposed on all payments made for import of technology the proceeds of the cess so levied shall be paid to the industrial developnient bank of india after due appropriation by parliament by law for being utiliaed for the purposes of the venture capital fund the proposed venture capital fund shall be utilised for ,providing further incentive's for the commer· cial application of indigenously developed technology and to adapt imported technology to, wider domestic, applications 2 the bill seeks to achieve the abnve objectives new delhi; the 1st may, 1986 janardhana poojary  president's recommendations under article 117 of the constitution of india[copy of letter no f 1 i 41 86-f1&t, dated the 2nd may, 1986, from shri janardhana poojari minister of state in the ministry of finance, to the secretary-general, lok sabha] the president, having been informed of the subject matter of the research and development cess bill, 1986, recommends under clauses (1) and (3) of article 117 of the constitution of india the introduction in and consideration of the bill by lok sabba   ~  ;; clause 4 of the bill provides that the central govemment may, if parliament, by appropriation made by law in this behalf, so prcmdel pay to the'development bank, from time to time from out of such proceeds (after deducting the cost of collection), suclt sums of money as it may think nt the collection of the cess wlll involve some expenditure from the coiliolidated fudd of india it- has not been possible at this stage to estimat the amount of such expenditure however, it is tentatively estimated that the collection of the cess will be about rs 15 crores per annum on an average the expen8811 of collection would reasonably come to about rs 15 lakhs per annum as only the balance of the proceeds, after deducting' the cost of collection, wlll be utiused for making payments to the industri~l development bank of india, there will, in effect, be no net outgo from the consolidated fund of india 2 the expenditure on the collection of the cess will be of a recurring nature and the bill does not involve any other expenditure whether of a recurring or non-recurring nature i ' " j,;t clause 10 of the bill seeks 1"0 empower the central government to make rules for carrying out the provisions of the proposed legislation the matters with respet to which rules may be made relate to the form in which and the period within which information is to be furnished, the manner of recovery of the arrears of the cess and any other matter which is required to be, or may be, prescribed 2 the delegation of legislative power is, therefore, of a normal character  a billto provide for the levy and collection of a cess on all payments made for the import of technology for the purposes of encouraging the commercial application of indigenously developed technology and for adapting imported technology to wider domestic application and for matters connected therewith or incidental thereto (shri janardhona poojary, minister of state in the mi,;,try of finance) 