AP Transfer Duty Reimbursement

Under the Andhra Pradesh Textile Policy 2024-29, also called AP TAG 4.0, the Reimbursement of Transfer Duty provides a one-time disbursal covering 100% of transfer duty paid. Industrial units across the Micro, Small, Medium, Sub-Large and Large categories are eligible for this incentive.

The reimbursement is intended to lower the upfront capital a business must commit when buying land or property for industrial use. Through this measure, the Government of Andhra Pradesh seeks to make the state a more viable location for textile and wider manufacturing activity, while encouraging fresh investment as well as the expansion or diversification of existing projects.

By returning the transfer duty amount to the enterprise, the policy allows capital to be redirected towards operations, technology upgradation and employment generation instead of being absorbed by upfront state levies.

Applications for the Reimbursement of Transfer Duty incentive are ordinarily made to the concerned state authority — in most cases the Industries & Commerce Department — in accordance with the Andhra Pradesh Textile Policy 2024-29 (AP TAG 4.0). An applicant is generally expected to furnish documents establishing eligibility either as a New Industrial Enterprise or as an Expansion/Diversification project, together with evidence that transfer duty has been paid. The sequence is broadly as follows:

- File a detailed application form, in the format laid down by the policy, with the designated department. - Attach the full set of supporting documents, including Udyam Registration (for Micro, Small, and Medium enterprises), company incorporation certificates, project reports, and official proof of transfer duty payment. - Wait for the authorities to carry out initial screening and verification of the documents. - Reply without delay to any departmental request for additional information or clarification. - Once verification and approval are complete, the reimbursement amount is processed and credited to the bank account of the eligible enterprise.

The Industries & Commerce Department of the Government of Andhra Pradesh reviews each application and its supporting documents through its designated authorities. Adherence to the eligibility criteria set out in the AP Textile Policy 2024-29 (AP TAG 4.0) is mandatory. Verification generally covers the enterprise's status — New Industrial Enterprise or Expansion/Diversification project — and its classification as Micro, Small, Medium, Sub-Large or Large, together with confirmation that transfer duty payment proofs are genuine. A dedicated committee or officials then determine whether every policy stipulation has been met before the reimbursement is approved.