Quries regarding Section 80IC

This query is : Resolved

P.K. Vasudeva (Querist)
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13 November 2010 Dear Sir

I hope you are keeping good health and growing in life at a steady rate.

This is regarding a few queries relating to Section 80IC, which are as follows:

1) A partnership firm enjoying exemption (100%) u/s 80IC since 2006-07 (i.e. 2010-11 is the 5th year), located in states of Himachal Pradesh. If the firm is converted into Company keeping in view the provisions of Section 47(xiii) of the Income Tax act, 1961.
Will the Company so formed, get the benefit of Section 80IC (i.e. @ 30%) from 6th year onwards?

2) For substantial expansion (additions more than 50% of the Plant & Machinery).
Whether 50% is to be taken of cost or written down value?

3) If the Company so formed, sets up Unit II in different States (notified backward areas).
Will the Company get benefit of Section 80IC ?

4) Is the benefit u/s 80IC available till 2012 ?

Request you to clarify the above issues to have clarity at our end.

Awaiting replies from the experts.

Thanking You

NITIN SHARMA

NITIN SHARMA (Expert)
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15 November 2010 In my openion the co. will get the benifit of such section as there is no restriction on the basis of the conversion and all the essencial conditions are already fulfilled by that concern.As per the provision co. will get 30% deduction after five years.