Share |

Tax Holiday : 100% EXPORT ORIENTED UNDERTAKINS( 100% E.O.U.) [Section-10B]

 

3.         100% Export Oriented Undertakings (100% E.O.U.)

            1.   Conditions to be Satisfied

            2.   Amount of Deduction

            3.   Period of Deduction

            4.   Transfer under a Scheme of Amalgamation or Demerger

 

100% EXPORT ORIENTED UNDERTAKINGS( 100% E.O.U.)

[ Sec - 10B]

A deduction of such profits and gains as are derived by a hundred per cent. export-oriented undertaking from the export of articles or things or computer software for a period of ten consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce articles or things or computer software, as the case may be, shall be allowed from the total income of the assessee:

The Provisions of Sec 10B are given below :---

1.   CONDITIONS TO BE SATISFIED :         

This section applies to any undertaking which fulfils all the following conditions, namely:-

  1. it manufactures or produces any articles or things or computer software;

  2. it is not formed by the splitting up, or the reconstruction, of a business already in existence:

  3. no deduction under this section shall be allowed to an assessee who does not furnish a Return of his Income on or before the due date specified under sub-section (1) of section 139.

  4. Should not be formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such undertaking

  5. it is not formed by the transfer to a new business of machinery or plant previously used for any purpose.

  6. This section applies to the undertaking, if the sale proceeds of articles or things or computer software exported out of India are received in, or brought into India by the assessee in convertible foreign exchange, within a period of six months from the end of the previous year or, within such further period as the competent authority may allow in this behalf.

  7. Audit Report should be submitted in Form No. 56G.

2.   AMOUNT OF DEDUCTION :                    

 

If the aforesaid conditions are satisfied , the deduction u/s 10B may be computed as under :

Profit of the Business of the undertaking X Export turnover

Total Turnover of the business

 

For the assessment year beginning on the 1st day of April, 2003, the deduction under this sub-section shall be 90% of the profits and gains derived from the export of such articles or things or computer software

 

3.   PERIOD OF DEDUCTION :          

 

This deduction shall be allowed for a period of 10 consecutive Assessment Years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce such articles, or things or computer software.

 

No deduction under section 10B shall be allowed to any undertaking from the assessment year beginning on the 1st day of April, 2010 and subsequent years.

 

For the removal of doubts, it is hereby declared that the profits and gains derived from on site development of computer software (including services for development of software) outside India shall be deemed to be the profits and gains derived from the export of computer software outside India.

 

4    TRANSFER UNDER A SCHEME OF AMALGAMATION OR DEMERGER :

 

In case an undertaking eligible for deduction under this section is transferred, before the expiry of the specified period, to another Indian company in a scheme of amalgamation or demerger –

(a)        no deduction shall be admissible under this section to the amalgamating or the demerged company for the previous year in which the amalgamation or demerger takes place ; and

 

(b)        the provisions of this section shall apply to the amalgamated or the resulting company as if the amalgamation or demerger had not taken place.

 

More ... Topics @ Taxation System

Basic Concepts on Tax Systems in India
Basis of Charge (Residential Status)
Capital & Revenue- A Distinction Between As Per Income Tax ACT. 1961
Exempted Incomes : www.IncomeTaxManagement.Com
Income Tax Rates / Tax Slabs (AY-2014-2015 & 2015-2016) : For Co-operative Society
Income Tax Rates / Tax Slabs (AY-2014-2015 & 2015-2016) : For Company
Income Tax Rates / Tax Slabs (AY-2014-2015 & 2015-2016) : For Individuals (Males and Females both below the age of 60 years), HUFs, AOPs, BOls
Income Tax Rates / Tax Slabs (AY-2014-2015 & 2015-2016) : For Minimum Alternate Tax [MAT]
Income Tax Rates / Tax Slabs (AY-2014-2015 & 2015-2016) : For Partnership Firm
Income Tax Rates / Tax Slabs (AY-2014-2015 & 2015-2016) : For Senior Citizen (individuals who is age of 60 years or more but less than 80 years)
Income Tax Rates / Tax Slabs (AY-2014-2015 & 2015-2016)
Section-wise Other Income Tax Rates [For A.Y. 2014-2015 & A.Y. 2015-2016] Specified In The Income Tax Act.
Tax Holiday - FREE TRADE ZONE (FTZ)[ Section 10A]
Tax Holiday : SPECIAL ECONOMIC ZONE [ SECTION 10AA]
Tax Holiday : 100% EXPORT ORIENTED UNDERTAKINS( 100% E.O.U.) [Section-10B]
Tax Holiday : INCOME FROM EXPORT OF ARTISTIC HANDMADE Wooden Articles[Section-10BA]
Tax Holiday- Deduction (Sections 80-IA)
Tax Holiday- Deduction (Sections -80-IAB)
Tax Holiday- Deduction (Sections - 80IB )
Tax Holiday- Deduction (Sections - 80IC)
FREE TRADE ZONE (FTZ)[ Section 10A] : Tax Holiday (Sections 10A, 10AA, 10B & 10BA)
SPECIAL ECONOMIC ZONE [ SECTION 10AA] : Tax Holiday (Sections 10A, 10AA, 10B & 10BA)
100% EXPORT ORIENTED UNDERTAKINS( 100% E.O.U.) : Tax Holiday (Sections 10A, 10AA, 10B & 10BA)
INCOME FROM EXPORT OF ARTISTIC HANDMADE : Tax Holiday (Sections 10A, 10AA, 10B & 10BA)
Taxation Systems in India
Get Updated ....
Tax Tutorials
E-Payment Of Direct Taxes
Filing Of Return Of Income
Interest for Delay in Filing the Return of Income [Section 234 A]
Interest for default in Payment of Advance Tax [Section 234B]
Provisions Of 'Income-Tax Law' Useful For Non-Residents
MAT (Minimum Alternate Tax)
AMT ( Alternative Minimum Tax)
Tax On Long-Term Capital Gains (LTCG)
Tax On Short-Term Capital Gains (STCG)
Exemption[ Section-54] For Capital Gains Arising On Transfer Of Residential House Property
Tax Treatment Of Gifts Received By An Individual Or HUF
Set Off And Carry Forward Of Loss Under The Income-Tax Act
Interest For Delay In Payment of TDS/TCS And For Non-Payment Of Tax Demanded
Tax Deduction/Collection Account Number (TAN)
How to apply for PAN ?
Refund Of Excess Tax Paid By The Taxpayer (Sections - 237 to 245 )
Presumptive Taxation Scheme of Section 44AD
Presumptive Taxation Scheme of Section 44ADA
Presumptive Taxation Scheme of Section 44AE
Deduction in respect of Life Insurance Premium, PPF, NSC, etc. [Section 80C]
Deduction in respect of Medical Insurance Premium [Section 80D]
Tax Deducted at Source (TDS) from Interest, other than Interest on Securities (Section-194A)
Tax Deducted at Source (TDS) from Interest on Securities (Section 193)
Late Filing Fees And Penalty For Failure To Furnish/Delay In Furnishing The TDS/TCS Statements
LIBRARY @ Tax Management
TAX & INVESTMENT GUIDE FOR "NRI"- Non-Resident Indians !
GUIDE & FAQ @ TAX
GRAPHICAL PRESENTATION @ TAX
TIPS & TRICKS @ TAX
MANAGERIAL & FINANCIAL DECISIONS @ TAX
5 GOLDEN RULES OF TAX PLANNING
FAMILY TAX PLANNING
DEDUCTIONS FROM YOUR INCOME
EXEMPTED INCOMES
HUF - FORMATION, MANAGEMENT & TAX PLANNING
COMPUTATION OF GROSS TOAL INCOME
INCOME TAX @ GLANCE
MULTIPLE KNOWLEDGEBASE ON TAX
51 TIPS ON TAX PLANNING
APPEALS UNDER INCOME TAX
ASSESSMENTS
PENALTIES UNDER IT DEPATMENTS
TAX SAVING SCHEMES
TAX READY RECKONER
TAX RATES
PROSECUTIONS UNDER INCOME TAX DEPARTMENT
TAXATION SYSTEM IN INDIA
CHARITABLE & RELIGIOUS TRUST - TAXATION
PRESCRIBED FORMS WITH with Section / Rules
KNOWLEDGE BASE !
New Topics @ Tax KnowledgeBase...
 
 

Most Popular Topics :

Corporate Tax ( Taxation in Companies)
FAQ on TDS on Salaries
FAQ on Taxable Income
FAQ on Filing of Income Tax Return
Graphical Chat Presentation of Provision of Motor Car / Other Vehicles [Rule 3(2)(A)&(B)]
'Appeals' Under Income Tax Act. 1961.
'Assessments' Under Income Tax Act. 1961.
List of Exempted Incomes (Tax-Free) Under Section-10
Income Under the Head ' Business and Professions' [Section 28 to 44]
Income Under the Head ' Capital Gain'
Income Under the Head ' House Property '[Section- 22 - 25 ]
Income Under the Head "Salary"
[Section 15-17]
Income Tax on 'Partnership Firms'
PENALTIES Under Income Tax Act. 1961.
Tax Saving Schemes for Individual -Instant Guide
New Tax Rates For FY 2017-18 & AY 2018-19
"Exempted Incomes" under Income Tax Act.
Charitable & Religious Trust :Formation, Registration, & Taxation
Hindu Undivided Family [HUF] - Formation, Management and Taxation
 

Most Popular Links :

Clubing of Income Deduction U/s 80C
Allowances Us-17(3) Exemption-Salary
Tax Amendment-2015 Taxable Income
Clubing of Income Tax Deductions
HUF Deduction HUF Investment
Gift by HUF HUF Tax Planning Tips
Tax Saving Schemes Tax Planning Tips
Refund of Tax Fringe Benefit Tax-FBT
Return Filing Assessment / Scrutiny
Notice from I.T. Dept. Incomes Types @ TDS
Exemptions-Tax Returns “Summon” U/s 131
'Black Money' @ I.Tax Big Gifts To Be Taxed
'Appeals' under I.Tax Assessment @ I.Tax
Exempted Incomes Capital Gain
Business & Professions House Property
Salaries @ I.Tax Partnership Firm
'Penalty' under I.Tax Act. Tax Ready Reckoner
Charitable Trust Useful Links @ I.Tax
 
Guide & FAQ on Tax Knowledgebase @ Taxation Income Tax @ Glance HUF - Formation, Planning & Taxation
Charitable & Religious TRUST NRI (Tax Planning,Saving,Investemnt) Budget 2017-2018 GST (FAQ, Law, Act. Rules, Schedule, Enrollment)
FAQs - Income Tax India Tax Tutorials    

Disclaimer:
All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may click here to visit the web site of Income Tax Department for resolving their doubts or for clarifications