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Employers tax rate and grant refund formulae

Rate of Refund

For in-house and institutional-based training courses, the HRDC training grant refund will depend on the employer’s tax rate as follows :

% EMPLOYER’S TAX RATE

% HRDC GRANT REFUND

15%

60%

0%

75%

Grant Refund formula per financial year

Annual Levy paid for previous financial year (1%)

Maximum grant refund for current financial year

(i) Up to Rs 20,000

15 times levy paid

(ii) Above Rs 20,000 and up to Rs100,000

5 times levy paid subject to a maximum limit of Rs 400,000 (however for the first Rs 20,000 the grant paid will be as per above)

(iii) Above Rs100,000

2 times levy paid (however for the first Rs 100,000 the grant paid will be as per above)

Examples of Grant Ceiling Computation per financial year

Annual Levy paid for previous financial year (1%)

Maximum grant refund for current financial year

(1) Levy contribution of Rs 15,000

Rs 225,000

(2) Levy contribution of Rs 50,000
First Rs 20,000 X 15 = Rs 300,000
Balance Rs 30,000 X 5 = Rs 150,000
Total = Rs 450,000
Grant Ceiling limited to Rs 400,000

Rs 400,000

(3) Levy contribution of Rs 500,000
First Rs 100,000 = Rs 400,000
Balance Rs 400,000 X 2 = Rs 800,000
Total = Rs 1,200,000

Rs 1,200,000

(4) Levy contribution of Rs 1,500,000
First Rs 100,000 = Rs 400,000
Balance Rs 1,400,000 X 2 = Rs 2,800,000
Total = Rs 3,200,000

Rs 3,200,000