Section 10aa benefit to unit in sez.
This query is : Resolved
16 February 2013
Dear Experts
Ours is a unit in SEZ for mfg & export of gold studded jewellery / ornaments. We do not do DTA sales at all. But we do job work of a unit in DTA. They give us Raw Gold & Stones. We purchase Diamonds from them and then we do studding of diamond & stones & make ornaments for them.
Now as per income tax, income by way of labour charges done for a DTA unit is exempt under 10AA ? We have already got the permission for Mfg as well as doing job work from the Development Commissioner, SEZ.
Please guide with citation.
regards
anckoora-9510221768
Ours is a unit in SEZ for mfg & export of gold studded jewellery / ornaments. We do not do DTA sales at all. But we do job work of a unit in DTA. They give us Raw Gold & Stones. We purchase Diamonds from them and then we do studding of diamond & stones & make ornaments for them.
Now as per income tax, income by way of labour charges done for a DTA unit is exempt under 10AA ? We have already got the permission for Mfg as well as doing job work from the Development Commissioner, SEZ.
Please guide with citation.
regards
anckoora-9510221768
SANJAY TALATI
(Expert)
18 February 2013
Deduction u/s 10AA in respect of the profits from the SEZ unit is available as per the following formula
Profits from Business of the Undertaking X
Export Turnover of the undertaking/ Total Turnover of the undertaking.
Profits of the Business of the undertaking is to be computed as per the pfovisions of computing the income under the head profits and gains of business or profession.This would include the income derived from Job work done for DTA Unit.
Export Turnover means the consideration in respect of export by the undertaking being the articles or things or services received in foreign exchange.
Total Turnover includes both the domestic and export turnover of the undertaking.
Thus,it can be interpreted that if the entire turnover of the Unit is Export Turnover, then the profit from the job work done for DTA unit will be eligible for 10AA benefit.
Profits from Business of the Undertaking X
Export Turnover of the undertaking/ Total Turnover of the undertaking.
Profits of the Business of the undertaking is to be computed as per the pfovisions of computing the income under the head profits and gains of business or profession.This would include the income derived from Job work done for DTA Unit.
Export Turnover means the consideration in respect of export by the undertaking being the articles or things or services received in foreign exchange.
Total Turnover includes both the domestic and export turnover of the undertaking.
Thus,it can be interpreted that if the entire turnover of the Unit is Export Turnover, then the profit from the job work done for DTA unit will be eligible for 10AA benefit.
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