18 December 2010
Dear Sirs, According to Section 10AA of IT Act, a unit in SEZ can avail exemption from 6th year only if it has transferred an amount equal to exemption claimed i.e 50% of profit.Such reserve can be utilised only to acquire machinery or for the purpose of business until such machinery is acquired.
My doubt is what are the entries to be passed in the books when such reserve is utilised to buy the machinery.
CAclubindia
