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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« News Headlines »
 How to submit Form 15H, Form 15G to avoid TDS on interest income
 What is tax deducted at source (TDS)?
 Income Tax Return filing 2018: Here are some important tips for you
 Change in Examination Venue in Thane, Zone – II, May 2018 Examinations
 Here’s all you need to know New Income Tax return for salaried class available on IT portal
 What to do if you missed the (second) tax deadline
 Income-tax (5th Amendment) Rules, 2018 - Notification under section 9A (3) of the Income-tax Act, 1961 in respect of Fund Manager Regime
 Income Tax department warns salaried class again filing wrong ITRs
 ITR-1 form for AY 18-19 now available for e-filing
 New Income Tax Return Form for Salaried Class available in Portal
 Income Tax Return: ITR-1 ready for e-filing, says I-T department

Export-oriented units tax holiday may get longer
February, 19th 2008

The government is likely to give another lease of life, albeit a short one, to 100% export-oriented units (EOUs) by providing income-tax incentives to them for one more year beyond March 2009. The tax exemption available to such units is scheduled to run out next year, when the sunset clause for the scheme kicks in.

Sources said the government is now considering one more tax-free year for export units. An announcement to this effect is expected in the forthcoming Budget, they said. A recommendation for pushing back the sunset clause by one year has been made by the V Krishnamurthy Committee, which was set up by Prime Minister Manmohan Singh for suggestions on helping exporters to cope with a rising rupee. The sources said with a one-year extension a decision on extending the scheme further will vest on the new government, which is expected to be in place by mid-2009.

Export-oriented units and software technology parks (STPIs) are eligible for tax exemption under Section 10A/10B of the Income-Tax Act. In the previous Budget, the government had imposed a minimum alternative tax (MAT) on both export units and STPIs.
While the Krishnamurthy Committee has recommended a one-year extension of tax sops for EOUs, it is silent on STPIs, as its recommendations cover only manufacturing activities.

However, the IT ministry is pushing for a relief for software exporters, too. Ministry sources said while a blanket extension of STPIs tax incentives is unlikely, the small and medium units may get some benefits.

The Prime Ministers economic advisory council, headed by former RBI governor C Rangarajan, is not in favour of an extension of tax sops to STPIs. Sources said despite the councils recommendations, the Centre was considering continuing with the reliefs for some time, considering the pressure IT exporters are facing from the rising rupee. Besides, there are concerns of a likely slowdown in economy and an overall slump in global demand.

Economic think tank ICRIER (Indian Council for Research on International Economic Relations), which had carried out a study on behalf of the finance ministry, has also recommended an extension to the schemes.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software Development

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