6.14.1 The income-tax payable in operating the hydropower generation project, transmission system and distribution system shall be as provided for in the prevailing Income Tax Act.
6.14.2 In the present situation where value added tax is not levied on the electricity tariff, value added tax shall not be imposed on the industrial machineries, equipment and spare parts imported, after obtaining permission, by a project so as to use them in the construction of hydropower project. If value added tax is levied on the electricity tariff, value added tax shall also be accordingly imposed on the above- mentioned materials and machineries, as well.
6.14.3 Only one per cent customs duty shall be imposed on the devices, equipment, machineries and spare parts related therewith to be imported with permission for the project during the construction phase. Provided, however, that the value of such spare parts shall not exceed twenty per cent of the total value of the devices, equipment and other machineries to be imported.
6.14.4 In cases where the machines required for such project during the construction period have been imported on the condition of taking them back, such machineries have to be taken back after completion of the project. In the event of failure or inability to take them back, custom duty shall have to be paid, at the prevailing rate, after completion of the project, as per the rules, on the remaining value after deducting depreciation.