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: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: TDS :: VAT Audit :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: ACCOUNTING STANDARD
 
 
« News Headlines »
 Income tax filing FAQs part 1
 Filing Income Tax Returns? Things To Keep In Mind As Deadline Approaches
 Filing of online return for 4th quarter of 2016-17- extension of period thereof.
 New tax accounting standards may reduce leeway for infrastructure companies
 GST – CONCEPT & STATUS – As on 01st May, 2017
 Govt extends VAT deadline, relief for developers
 Income Tax Appellate Tribunal Rules, 2017
 Got your Form 16? You should file income tax returns early to enjoy benefits
 Want to save tax? Here are 6 best investment options for you
 Income Tax department activates e-filing facility for all ITRs
 All the income-tax return forms for the current assessment year are available online

IT SEZs to get tax breather
February, 25th 2009

Indias largest information technology companies received a morale-boosting assurance from finance minister Pranab Mukherjee when he accepted that the income tax law that prevented their subsidiaries in special economic zones from getting full tax benefits was discriminatory and needed to be removed.

However, the companies including Indias top three software exporters, TCS, Infosys and Wipro, will have to wait for the new government to bring about the change through an amendment to the Income Tax Act in the budget.

Mr Mukherjee made the much-awaited statement on Tuesday in reply to a question in Parliament. This is certain to soothe the jangled nerves in the information technology industry that faces a squeeze on margins with their major markets reeling under the impact of a recession, the worst since 1930s.

This (section 10 AA) has resulted in discriminatory treatment of assessees having units located both in SEZ and the domestic tariff area vis--vis assessees having units located only within the SEZs. It has now been decided to remove this anomaly through necessary changes in the Act, Mr Mukherjee said.

Section 10 AA (7) of the Income-Tax Act states that only a proportion of profits of an SEZ unit, based on the proportion of export sales from the unit to the total turnover of the parent company, will be exempt from taxation.

This means that if an SEZ unit exports 40% of the companys total turnover, then it will be given tax exemption on only 40% of the profits earned instead of 100% as promised under the SEZ Act. According to commerce secretary GK Pillai, the finance ministers statement holds weight as it is a commitment made in parliament.

The statement has been made to let the industry know what is coming. There can be no back-tracking on the commitment as it has been made on the floor of the house, he said. Infosys director TV Mohandas Pai said companies will no longer need to set up subsidiaries to enjoy the tax benefits of operating in an SEZ.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Bath SEO Company Birmingham SEO Company Bradford SEO Company Brighton and Hove SEO Company Bristol SEO Company Cambridge SEO Company Canterbury SEO Company Carlisle SEO Company Chester SEO Company Chichester SEO Company Coventry SEO Compan

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