Meaning of export proceeds for Section 10A
This query is : Resolved
11 January 2011
Our client is a SEZ unit claiming deduction under Section 10A. It receives its export proceeds net of agency commission paid to foreign agents.
The A.O. has treated the same as only part of sale proceeds received in India and has allowed only proportionate deduction. Is the A.O. correct? Commission paid is an expense. Anyway, if after fully realising the sales proceeds, commission would have been paid separately, it would amount to the same thing.
The A.O. has treated the same as only part of sale proceeds received in India and has allowed only proportionate deduction. Is the A.O. correct? Commission paid is an expense. Anyway, if after fully realising the sales proceeds, commission would have been paid separately, it would amount to the same thing.
11 January 2011
Yes , I am agree with you that there is no difference while reciving the net payment.
Bust as per tax term , we have to follow the all the provision of the Act. AO has correctly computed the profit.
Bust as per tax term , we have to follow the all the provision of the Act. AO has correctly computed the profit.
12 January 2011
Thank you for replying. So export turnover will be considered only net of commission received in India. Will total turnover also be reduced by the amount of commission since total turnover also includes export turnover?
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