01 September 2010
Q. If the Pvt Ltd is Developing & Selling of Computer Software and registered with the STP ( Software Technology Park) to get the deductions u/s 10 A of the Income Tax Act and the same Company is also Having another Business which is not Covered under STP .No separate books of accounts are maintained by the Company for both the business .and Direct Expenses Directly Charged to the Concerned Business but Indirect Expenses are taken on proportionate basis it is valid or not . Finally my question is that –
a) Can company claimed the deduction u/s 10A without maintain the separate Books of Accounts. b) Certificate of Managements of the Companies are valied or not for Expenses incurred towards Business related to STP.
07 September 2010
Separate books of accounts and bank accounts are required to be maintained under Foreign trade policy.Not maintaing is non-compliance under FTP. However,if you are able to compute profitability for STP unit- to the satisfaction of Income tax officer,it should be acceptable for the purpose of section 10A. Management certificate is not sufficient for claiming the deduction.
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