Section 10B

This query is : Resolved

CA KISHORE VANAMA (Querist)
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10 July 2010 Hai Experts,

I am sending my doubt regarding Section 10B of IT Act, One of my client is software company which is 100% EOU has provided services to SEZ ( Which is That group Company ) and recevied amount in indian Rupees.

My Doubts
1. Whether sale to SEZ by 100% Eou will cover under Deemed Exports
2. Whether Deemed Exports are covered under the Definiton "Exports"
3. Whether amount recevied by 100% Eou in Indian Rupees can be eligible for 10B exemption or it may lost

Plain reading of Sec 10B clearly says that Term "Export" has not defined and should be verified in Foreign Trade policy and Export Turn over should be recevied in convertiable Foreign Exchange

Please give ur valuable suggestions for this doubts and clarify me if there any case laws regarding this.

Thanking u in advance

CA.KISHORE VANAMA

CA.Mini

CA.Mini (Expert)
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10 July 2010 deemed exports are available for deduction under incometax act.but the sale proceeds should be received in convertible foreign currency to avail the exemption under section 10B