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: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: ACCOUNTING STANDARD :: TDS :: cpt :: VAT RATES :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: empanelment :: form 3cd :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit
 
 
Direct Tax »
 GST is a transformational business process reform. All companies will have to change
 GST Council relaxes return filing rules for July-Aug
 Here's how self-employed individual can file tax return with ITR4
 CBDT mulling new system of jurisdiction-free I-T assessment to curb corruption
 CBDT draft notice on computing tax liability of foreign firms
 CBDT forms task force for jurisdiction-free income tax assessment system
 Aadhaar must for filing returns from July 1: CBDT
 Aadhaar mandatory for filing I-T returns and obtaining new PAN card from July 1: CBDT
 Central Board of Direct Taxes cuts profit margin for safe harbour rules
 What is TDS and how does it work?
 Income tax return: Do super senior citizens have to file returns?

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 2017 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