What You Can Claim as Eligible Costs for the Project?
This document is intended for use with the CFP/Competition Guidance Document. It covers the following:
There are ranges of costs that can be supported as your eligible project costs.
The estimates of the costs that you use to complete the project cost must be the total costs for the project and will include costs for all activities and all participants that are involved in your section (part) of the project.
Please Note: Any revenue generation activities cannot be included as part of project costs. Only Research & Development related activities can be included as part of project costs.
Eligible Costs
For a cost within your project to be eligible for funding it must:
GITA pays your grant based on audited actual eligible costs. These costs must be incurred and paid between your project start and end dates.
Definitions of Eligible Direct Labor
Permanent/Contractual personnel directly related and relevant to the project that are based in India for the Indian company, and based in Israel for the Israeli company. The R&D personnel may be directly employed or on contract and receive the compensation from the applicant company. The R&D personnel should hold relevant technical qualification and experience
Conditions
The rules of salary expenses, including overhead and administrative expenses, will apply according to the accepted practice in each country
R&D personnel who are foreigners working in India or Israel must hold valid work passes.
Not Supported as Direct Labor
Temporary R&D personnel (to be classified under V. Subcontractors & Consultants) R&D personnel who are employed and paid by a related company, subsidiary, overseas branch, 3rd party, etc.
- EQUIPMENT / SOFTWARE DEPRECIATION
Definitions of Eligible Equipment / Software Depreciation
The usage cost in value of the new equipment or software deployed during the project and the purchase of equipment/software which are required for and relevant to the project shall be supported according to DST/GITA and Israel Innovation Authority policies.
Not Supported as Depreciation Cost
Miscellaneous cost such as VAT/GST, bank charges, shipping, delivery, setting up, servicing, etc.
Full purchase cost of equipment and software
- EXPENDABLE MATERIALS & SUPPLIES
Definition of Eligible Expendable Materials & Supplies
Off the shelf consumables which are used during the Project and are not reusable.
Items which require to be custom-made by 3rd parties if required for the project.
Condition
The applicant company supplying consumables to its Project's partner during the Project should not charge the consumables cost to the partner's proposed project budget. The applicant company should include such cost in its own proposed Project budget
Not Supported as Expendable Materials & Supplies Cost
Office supplies, rental, utilities, etc.
Miscellaneous cost such as VAT/GST, bank charges, shipping, delivery, etc.
Definitions of Eligible Travel Cost
The cost incurred during trips between India and Israel as well as internal travel cost in India
Condition: Only economy class travel (tickets ) is eligible for reimbursement
Conditions
Only economy class travel (tickets) is eligible for reimbursement
Only trips made by R&D personnel listed in the approved project budget are recognized
Trips should be of R&D nature and directly related to the project
The applicant company's R&D personnel, who travel to the project partner's country, should not charge their travel costs to the partner's proposed project budget. The applicant company should include such costs in its own proposed project budget
Not Supported as Travel Cost
Trips to countries other than India and Israel
Passport and visa application, travel insurance, etc.
- SUBCONTRACTORS & CONSULTANTS
Definition of Eligible Subcontractors & Consultants
3rd parties which are engaged by the applicant company to assist in the engineering and technical aspect of the project Consultants who are engaged by the applicant company to develop a marketing/commercialization plan
Conditions
I4Fwill qualify the applicant company's proposed project budget. The total outsourcing cost is recognized at a maximum of 30% of the qualified cost before I4Fincludes the additional overhead and general & admin cost
The applicant company's contractual agreement with the subcontractors or consultants shall be submitted to I4F upon request. The contractual agreement must comply with these Guidelines and in particular the provisions of the IPRAnnex.
The applicant company engaging its related company or subsidiary as subcontractor or consultant shall be charged at cost
The applicant company does not possess the expertise of the subcontractor or consultant. Legal consultation related to the project, other than the dispute or arbitration.
Not Supported as Subcontractors & Consultants
3rd parties which are engaged to carry out mass production, business/legal consultation, etc.
The applicant company's project partner
Definition of Eligible Certifications
Regulatory activities and standards certifications related to the project which are mandatory before the proposed product or technology can be commercialized
Supported as Certifications Cost
Patent applications
Not Supported as Certifications Cost
Tests are done by 3rd parties which are not mandatory for the commercialization of the proposed product or technology (to be classified under V. Subcontractors & Consultants)
Definition of Eligible Joint Commercialization Cost
Any further certifications or testing required for commercialization based on a detailed report.
Joint participation in trade exhibitions, joint presentation at conferences, joint marketing collaterals and joint roadshows in Israel/India or other third countries
Examples of joint commercialization costs: Rental of exhibition booth space, conference registration fee, the printing of brochures/posters, travel cost related to joint commercialization activities
Conditions
The allocation of USD 30,000 for joint commercialization activities can be broadly detailed in the initial budget annex submitted with the application. However, in cases where the utilization of the USD 30,000 is not detailed in the initial budget, it may be submitted during the project itself as long as it is submitted to fund managers 2 months prior to the activity itself. Utilization of joint commercialisation budget is subject to approval of I4F Co-Managers. Changes in commercialization budget allocations can also be made via change form subject to approval.
Both the applicant company and its Project partner must share the commercialization cost, hence, the commercialization cost must be included in both companies budget forms
Non-Eligible Costs:
- Input VAT, Excise Duty;
- Interest charges, bad debts, profits, advertising, entertaining;
- Hire purchase interest and any associated service charges;
- Production, quality control/assurance, , distribution, supply chain or selling costs or activities;
- Advertising and marketing costs or activities;
- Entertainment and hospitality costs;
- Profit earned by a subsidiary or by an associate undertaking work sub-contracted out under your project;
- Inflation and contingency allowances;
- The value of existing assets such as IPR (not developed as part of this project), data, software programmes and other exploitable assets that any of the collaborators contribute towards your project;
- Project audit or legal costs. The legal costs of setting up your project or the collaboration and costs associated in conducting audits, accountant’s reports or making grant claims;
- Sick days, waiting time and non-productive time;
- Bonuses, awards, profit related pay, company car expenses and any discretionary benefits to staff.
- Project audit fees
Commercialization activities which are not related to the proposed product or technology.