09 November 2011
Can a STPI unit claiming Section 10B till now, can shift to a SEZ and claim deduction U/s 10AA? If this is allowed, shall we deduct STPI years from 15 years as provided in sec.10AA?
Section 10-B of the Income-tax Act provides for 100% deduction of profits derived by a hundred by a hundred per cent Export Oriented undertaking, form export of articles or things or computer software manufactured or produced by it. The deduction is available for a period of ten consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce articles or things or computer software. However, no deduction under section 10-B is not available after 31.03.2011
09 November 2011
Mr.Ramesh Kumar, Kindly understand my query correctly; I asked whether an STPI unit can shift into a SEZ and start enjoying benefit U/s 10AA.
09 November 2011
AS PER HAND BOOK OF PROCEDURES VOL-1 (2009-2014) SUB PARA 6.36:2 EXISTING STP UNIT MAY ALSO APPLY FOR CONVERSION / MERGER TO SEZ BUT PRE APPROVAL OF DC AND ACHIEVED PRO RATA OBLIGATION UNDER STP UNIT.
PLEASE NOT: Section 10 (AA) of the ITA allows any SEZ unit which begins operations on or after April 1 2006 to make tax deductions equivalent to 100% of its income generated for a period of five consecutive assessment years from the time the SEZ unit commences operations, 50% for the next five assessment years, and tax deductions not exceeding 50% of the ploughed-back profits for the following five assessment years.
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