80IB

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This query is : Resolved

suren (Querist)

12 September 2009 The assessee undertaking is eligible for deduction u/s. 80IB since last 5 years. Recently, the assessee has started job work for outsiders to utilise the spare capacity fully and receives labour charges for services rendered. Does labour charges so received qualify for deduction u/s. 80 IB?

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

12 September 2009 It depends on the end user and certification given by the end user. If end user of the products (wherein you have charged only labour) satisifies the conditions laid down in 80IB then you can claim the same.

CA CHINTAN AJMERA

CA CHINTAN AJMERA (Expert)

12 September 2009 Agree with expert, it all depends on End user of the product

Late CA Sampat Jain

Late CA Sampat Jain (Expert)

12 September 2009 labour charges recd for manufacturing is also profit from manufacture ......whether service given by you is manufacture or not depends on the facts. The term manufacture is now defined in the ACT.

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