I had setup a manufacturing Pvt Ltd Co in Oct-19. The Co is converting Single Ply Yarn to Multiple Ply Yarn by processing over newly purchased machines. Also the Co is outsourced some conversion work to other manufacturers of Job Work basis. Please any expert let me confirmed that I am eligible for lower tax rate u/s 115BAB. Please analyse both the scenario, (1) Own manufacturing, and (2) manufacturing by Job Worker.
1 Replies
debora M
(BUSINESS DEVELOPMENT MANAGER)
(1697 Points)
Replied 16 May 2022
For the purpose of this section, the business of manufacture or production of any article or thing shall include the business of generation of electricity. Development of Computer software. Production of cinematograph films. Any other business may be notified by the central government on this behalf. However, company can permanently exit section 115BAA and can claim normal deductions/exemptions and pay tax as per normal regime. Such New Company must not be formed by Splitting up or Reconstruction of earlier business in existence
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