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
General »
 Government likely to withdraw tax notice on free banking services
 Senior Citizens Savings Scheme Rules, 2004
 How salaried individuals can avail full potential of I-T benefits
 The Central Board of Direct Taxes unveiled new Income Tax Return forms for assessment year 2018-19 on 5 April. Although the manner of filing returns remains the same as compared to last year, certain changes have been incorporated in the new ITR forms.
 Income Tax efiling: Must-do steps to file your IT return for FY 2017-18 on time till you get Form 16
 What are the tax filing deadlines for financial year 2017-18?
 How income tax department can penalise you for under-reporting, misreporting income
 Start your tax planning right now
 Government confident of meeting fiscal deficit, tax revenue targets
 Clarification with respect to the E-way Bill System
 Here is how you can save on taxes

Govt decision to deny tax holiday to new IT SEZs up for review
August, 26th 2014

The government’s recent decision to deny tax holiday to new IT SEZ units, if more than 20% of the technical manpower was transferred from a pre-existing unit, has come in for a review, indicating that some relaxations in the norm is likely.

The proposals before the Income Tax Department include raising sssthe upper limit on employees redeployed from older business units from the 20% introduced last month to roughly half of the total technical staff strength in the new IT SEZ.

Suggestions under consideration also include allowing the companies that set up new IT SEZs to have the new recruits either at these units or at the company itself. This, sources said, would ensure that the policy intent of job creation is met and new SEZs benefit from experienced manpower flowing from existing IT business units of the parent company.

The Department is also expected to clarify whether technical manpower means revenue earning general employees in the case of business process outsourcing (BPO) units housed in SEZs, said sources privy to the development.

IT industry sources had protested at the circular issued in the last week of July saying the norm would bring hardships to newly set up IT SEZs, which cannot be run by a majority of fresh recruits.

sMany IT companies said that had units in software technology parks, the tax benefit of which expired on March 31, 2011, had subsequently opened fresh IT units in SEZs to take advantage of the 15 year tax holiday available to them. Infosys, TCS, Wipro and HCL Technologies are the major players in this sector.

The Income-Tax Act mandates that benefit of allowing a company to deduct the SEZ export profits from their total taxable income shall be available only if these units are not formed by splitting up, or reconstructing an existing business.

The norm is applicable for plant and machinery too, but the law was silent on redeployment of manpower, the most important resource in the IT and ITeS industry.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Services SEO LLC e-boost Search Engine Optimization Services Internet Marketing Services Website Placement Services On-site Webs

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