16 July 2008
The assessee has a unit in mumbai SEZ-ABC Pvt.Ltd.-which has completed five years of tax holidays.The shares of assessee company are held by two shareholders who are also the directors of the company.This is referred here as Unit-I
The assessee company now setting up anonther unit in the same mumbai SEZ- with fresh investment,fresh machinery,fresh capital,fresh labour and managerial employees- and will follow all the conditions mentioned under SEZ Act and under Income tax Act. This is referred here as Unit-II
The books of accounts for the both units i.e. I & II will be maintained sepertely to arrive true and correct profit unit wise.
Can assessee company claim Exemption under section 10AA for Unit No. II while computing the total income of the assessee company.
Please also give other important information on the subject.
16 July 2008
According to section 10AA of Income tax act, 100% deduction will be available for the unit -II as it is a mew site. you have to show the income separately of both the units taking 50% deduction for next 5 years for Unit -I and 100% for next 5 years for Unit -II. if you are asking the sae thing which i have answered then its ok otherwise elaborate your query further... further opinions are welcomed
Thanks for your prompt opinion, I would like to get more clarification on the above subject.
Though fresh investments, new machinery, new managerial employees, etc. are going to happen in the new unit, however the product and customers will be the same as of unit no. I.
Despite the above facts, will the exemption to unit no.II be available under 10AA ie 100% for 1st 5 years and 50% for next 5 years.
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