Sanjay (Director) (155 Points)
28 July 2010Hi,
I have read the latest statements by Hon. FM about SEZ under DTC.
Only *investments* made in SEZ by developers and units holder will be exempted from Income Tax.
Profits will be taxed.
Do I understand this correct ? It will be a big blow to small IT companies.
The purpose of SEZ / STPI (which will close on 31st March 2011) will be defeated.
Pls advice.
Thx
Sanjay
pavan
(Articled assistant)
(42 Points)
Replied 29 July 2010
Industry has already approached the ministry to review the proposal regarding SEZ, because it had attracted many thousand crores of investments... Ministry cannot remove the benefit straight away...
But what the ministry is considering now is to replace profit based incentive with the investment based incentive... which if i understand correctly.. the profits earned till the amount invested will be exempted and the amount excessing the investement will be taxed...
If that is the case, ur view is correct (big blow to small IT companies)
Sanjay
(Director)
(155 Points)
Replied 29 July 2010
hmm.. Experts, please share your views on what is "investment based incentive".
Does it mean the amount invested will be 100% tax exempted.
or as Pavan mentioned "the profits earned till the amount invested will be exempted".
Thank you.
CAclubindia
