Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Deduction u/s 10B of Income Tax Act

Save Share

This query is : Resolved

M.K. GUPTA (Querist)

28 January 2011 A new Company claimed deduction u/s 10B (As 100% Export oriented Unit) and complied required conditions, except that it took certain old Machinery on Rent From its Sister concern and also paid Security deposit for Machinery. Company deducted TDS on such Rent of Machinery paid to sister concern. Company also purchased New Machineries of its own.

Whether taking old Machinery on Rent from sister concern is violation of condition prescribed u/s 10B and whether taking such old Machinery on Rent falls under definition of transfer as mentioned u/s 10 B ? Whether deduction claimed u/s 10B can be disallowed under such circumstances ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

30 January 2011 "old Machinery on Rent falls under definition of transfer as mentioned u/s 10 B"

Ans : No.

Whether deduction claimed u/s 10B can be disallowed under such circumstances ?

Ans No

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now