Dear Experts :
Profit from export = Profit of the unit's business X Unit's Export Turnover) / Total Turnover of the Business
If assesses have other business other than SEZ then what is the Total Turnover of the Business , is it includes all the business turnover or only the total turnover of the SEZ unit
Kindly guide me towards right direction
Great question!
For calculating deduction under section 10AA (SEZ units), the term “Total Turnover of the Business” generally means the aggregate turnover of the assessee from all businesses carried on by them during the relevant previous year.
If the assessee has multiple businesses, including one or more SEZ units and other non-SEZ businesses, the total turnover includes turnover from all these businesses combined.
It is not restricted only to the turnover of the SEZ unit.
This means profit from export = (Profit of the unit’s business × Unit’s export turnover) / Total turnover of the business will consider the total turnover of all units (SEZ + non-SEZ).
The intention is to compute the proportion of export turnover to total turnover to appropriately allocate profits for deduction.
The total business turnover is used as the denominator to reflect the complete scale of the assessee’s operations.
In summary:
| Term | Meaning |
|---|---|
| Unit’s Export Turnover | Turnover from export by SEZ unit |
| Profit of the Unit’s Business | Profit of the SEZ unit |
| Total Turnover of the Business | Aggregate turnover of assessee from all businesses (SEZ + non-SEZ) |
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