Export Sales 10A Benefit

ABC Ltd. is 100% Export oriented unit Registered under Software Technology Park of India (STPI). But not situated in SEZ Area, Company having EEFC USD Account for receive foreign Exchange sale.  

Company wants to take one Sales Order of Rs. 10 Lac from an Indian Company who is 100% Subsidiary of USA Company. Client said that they will pay Invoice Amount from his EEFC Account to ABC Limited EEFC Account in USD.

In This Case Can ABC Limited treat this Sales as Export Sales and take 10A Benefit under Income Tax Act.

Thanks

Kailash Dangade

Replies (1)

Points to be considered here are...

1. Export means taking goods out of India. Here since the company is not located in SEZ or notified area sale by such company to an Indian company though a 100% subsidiary may not be considered as export.

2. Sec 10A provides for exemption only on export sale the base fact for this doubt is defeated on considering the point above.

So sec 10A exemption is not available to ABC company........

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