Section 10A benefits

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Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2010 hello experts,

XYZ Pvt. Ltd starts producing computer software during the FY 1998-99 and subsequently obtains STP approval in the FY 2005-06. Whether the unit, on rendering of services prior to obtaining registration as a STP Unit, would qualify for deduction under section 10A of the Act

Regards,

daya shankar singh

daya shankar singh (Expert)
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22 June 2010 The deduction under u/s 10A is available to the unit which is newly established, not form by splitting up ot the reconstruction of existing unit or it is not formed by transferring to new unit, plant and machinary which is previously used.
Hence in ur case the deduction of 10A is not available before and after registration as a STP unit

Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2010 The question above no where speaks about splitting up or reconstruction of an existing unit. My question was, since sec 10A benefits are available upto 31/03/2011, what is the year from which the 10A benefits are calculated i.e. from the year of set up of business or from the year in which STPI registration was taken?

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daya shankar singh

daya shankar singh (Expert)
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23 June 2010 The deduction under sec. 10A would be available from the year u commences your production or manufacturing activity, provided that all other condition of 10A are satisfied