Dear Member
Can somebody provide the Tax Planning for Wind Mill Projects ?
Basic Information:
1. I am s sole propritor having different set of Business and one of Large Direct Tax Payer
2. My Intention is to Reduce Tax liabilty by way of Investment in REnewable Enrgy Sector
3. I Have already made Investments in Wind Mill Projects and already generating Reveue. Project completed during February,2010.
4. I want to go for one more wind mill for higher capcity which require substantial investment .
Before I go fot it Can sombody advise me on the below Doubt ?
Alternative 1: I want to club the Entire Income from Wind Mill along with Higher Depreciation with my current business income so that Ican get immediate substantial Tax benifit from the Wind Mill Depreciation .
Alternative -2. 80IA Benfit : Which requires me to treat this project stand alone project and avail 10 yrs Tax Holiday. In this situation, If I go for Tax holiday, my only Cash inflow will be Revenues from State Electricty Board as for 1st 8 Years I will have Depreciation Loss .
Please guide me is there any other alternatives so that I can make best use of this Income Tax provisions ?
Regards
Manoj
CAclubindia
