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: empanelment :: VAT Audit :: Central Excise rule to resale the machines to a new company :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: articles on VAT and GST in India :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: VAT RATES :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: cpt
 
 
Direct Tax »
 No change in gold seizure norms in proposed I-T Law amendments
 Direct tax collection will get a long-term boost, Franklin Templeton says
 I-T Act amendments upset calculations of cash hoarders
 Claim tax benefit on costs incurred to evict tenants
 The Integrated Goods And Services Tax Act, 2016
 Here’s what Income Tax Department did leading up to demonetisation
 I-T department asks IDS declarants to pay tax by November 30
 Cash trove tax drive dilemma
  CBDT halves Income Tax refunds issue timeline to 15 days for this fiscal
 CBDT signs four unilateral advance pricing agreements
 Central Board of Direct Taxes allowed Rs 4,500 crore of irregular benefits to infrastructure companies: CAG

Central Board of Direct Taxes allows tax concessions to IT companies that have shifted to SEZs
July, 31st 2014

In a significant relief to the IT industry, the Central Board of Direct Taxes has said IT and ITeS units that shifted operations to special economic zones will be able to enjoy the tax sops under the scheme as long as their transferred technical manpower to the new unit is less than 20% of existing workforce.

This clarification seeks to settle the issue on companies shifting operations to SEZs to take advantage of the profit linked exemptions available under the policy that was leading to increased litigation.

The new government had promised to review the overall SEZ policy to give a new lease of life to these tax-free zones that have failed to takeoff as envisaged. Apex direct taxes body's clarification comes under the Section 10AA of the I-T Act, 1961, that provides for deduction in respect of the profits derived by a unit set in SEZ from export of computer software or from providing ITeS.

The tax exemption is available if the new SEZ is not formed by split-up or reconstruction of an existing business or by transfer of used plant or machinery. However, the deduction is available if the earlier used plant and machinery does not exceed 20% of total value of the plant or machinery used in new business.

However, tax authorities had in a number of cases denied the tax benefits if technical manpower from the existing units had been transferred or redeployed to the new unit.

An instruction issued by the board stating that there is no bar on transfer of manpower to SEZ units added to the confusion in the industry.

This prompted the industry to take up the issue with the board. It subsequently represented to the Rangachary committee, set up by the previous government, that there is a limited pool of software developers of skilled, talented and experienced manpower with domain knowledge.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

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