Hi All,
I have a query on eligibility of Section 10A in the below case:
A Company incorporated in Jan-2006 and got registered as a STPI unit in Feb 2008. Existing Business before registration with existing assets were carried on in the new STPI unit. Is this Unit eligible for exemption u/s. 10A although the existing Plant and Machinery is more than 20% as per sub clause iii of Section 10A(2).
I would appreciate if you could help me in this.
Thanks
Roshan
Sec 10 A Clearly specifies the word " Commencement " not register. So the unit is eligible for Sec 10A even before its registration. The purpose of registration is only for true identitity.
and as per Sec 10A(2), "it is not formed by splitting/ reconstruction of business already in use" ; in your case, if there is no change in structure of organisation since its inception, then there is no need to worry, the unit is eligible for Exemption under Sec 10A.
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