Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: TDS :: VAT RATES :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: cpt :: empanelment :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: Central Excise rule to resale the machines to a new company
 
 
« News Headlines »
 Make your inventory and invoicing software GST Ready from Binarysoft
 Filing income-tax returns gets simpler for salaried persons
 Ten rules you must follow while filing income tax returns
 Reforming the income tax tribunal
 How the new system might impact consumers and businesses
 10 ways you get benefited from filing your tax return
 Returns under CGST Act,2017 with Rules
 Ten facts to know about filing income tax return this year
 The Ten Commandments of Tax Filing
 How to claim income tax refund
 How to time your buys to have best of two tax regimes

I-T sops for EoUs may go after '09
January, 30th 2007

Income-tax holiday for export-oriented units (EoUs), set to expire in 2009, are unlikely to be extended in Budget 2007. The finance ministry, backed by the recommendations of the Prime Ministers economic advisory council, has rejected the commerce ministrys demand for extension of the sunset clause for EoUs. The likely rejection would be a big disappointment for EoUs which were positive about an extension since the government is considering extending similar sops to STPIs beyond 2009.

In its reply to pre-Budget proposals of the commerce department, the revenue department said the demand of removal of sunset clause for EoUs could not be met as the PMs economic advisory council had recommended the deduction under Section 10B should not be extended beyond assessment year 2009-10. The finance ministry argued that since the tax benefit under Section 10A was similar to Section 10B, the recommendation also applies in case of Section 10A.

The commerce departments argument was that since EoUs earn thin profit margins, withdrawal of the tax incentives will erode profitability of existing EoUs and discourage fresh investments. According to sources, big investments havent been made in the EoUs in the past two years, since such investments have long gestation periods and would not be able to enjoy tax sops if the sops were to run out in 2009.

According to ministry sources, since STPIs and EoUs were extended tax benefits under the same chapter of the foreign trade policy, an extension in sops for the latter should also apply to the former. While the government has not decided to extend tax sops to STPIs yet, it is under serious consideration.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions