Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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: VAT Audit :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: VAT RATES :: ACCOUNTING STANDARD :: empanelment :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: articles on VAT and GST in India
 
 
« Direct Tax »
 Five interest incomes you are likely to forget to include in your tax return
 GST not to be added for TDS computation
 GST not to be added for TDS computation
 Income Tax Return (ITR) Filing: Common Mistakes That Could Get You A Tax Notice
 Income Tax department asks tax practitioners to register entities separately
 Last Date To File Income Tax Return. Here Are The Details
 New tax regime will deliver a mixed bag with some items turning costly
 New members at CBEC, CBDT
 CBDT signs 5 more unilateral advance pricing agreements with taxpayers
 Find out potential taxpayers; focus on smaller cities: CBDT to taxmen
 CBDT launches app Ayakar Setu to make paying taxes, applying for PAN, I-T grievance redressal easier

Relief for export units as CBDT untangles tax net
March, 18th 2009

The Central Board of Direct Taxes (CBDT) has instructed income-tax officials to allow export-oriented units (EOUs) approved by development commissioners to claim tax exemption, ending the uncertainty over tax benefits to EOUs.

It has been decided that an approval granted by the development commissioner in the case of an export-oriented unit set up in an export processing zone will be considered valid, once such an approval is ratified by the board of approvals (BoA) for EOU scheme, said a CBDT communiqu send to income-tax officials.

The BoA has representatives from various ministries including commerce, revenue and home, among others.
Earlier, income-tax authorities had denied tax benefits to entities approved by development commissioners. Following this, the ministry of commerce and industry took up the issue with the revenue department. Industry organisations including the Export Promotion Council for EOUs and SEZs had also made representations to the revenue officials.

EOU is defined as hundred percent export-oriented undertaking approved by the board appointed by the central government under the Industries Development and Regulation Act, 1951.

EOUs are eligible for tax exemption under Section 10B of the Income-Tax Act. The exemption was first introduced in the Finance Act, 1981, and substituted by the Finance Act, 2000.

Subsequently, the power to approve EOUs was delegated to development commissioners who are administrative heads of export processing zones. The BoA could later ratify the EOUs approved by commissioners. However, tax authorities in same cases did not recognise the approval given by development commissioner and began denying tax benefits on this ground.

In some instances, tax authorities had not just demanded tax due but also imposed penalty on them. Exports from EOUs stood at Rs 1,42,211 crore, or 23% of the countrys total exports, in 2007-08. There are about 2,500 EOUs in the country.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

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