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Section 10 AA

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CHAITRI SUDHAKARBHAI KHAROD

ARTICLE

533 Points Posted on 03 May 2020

Suppose I want to claim exemption under section 10AA
Now, I have completed 10yrs in SEZ......For remaining 5 yrs , I can claim if I fulfill specified conditions....
For that we have to create reserve and utilise it in a specified manner...
My question is : if after utilisation of reserve, extra reserve which remains unutilised can be used for other purpose like distribution of dividend etc...

Replies (4)

Quick Summary

This discussion clarifies the rules around Section 10AA tax exemptions for businesses operating in SEZs. Specifically, it addresses whether any remaining funds in the reinvestment reserve, after fulfilling the business utilisation requirements, can be distributed as dividends or profits. The consensus is that these reserves are strictly for business purposes and cannot be used for dividend distribution or other non-business activities.

Kiran Hathalia

460 Points Posted on 04 May 2020

The s*x reinvestment reserve shall be utilized for the purpose of business other than for distribution by way of dividends or profits or for remittance outside India as profits or for the creation of any asset outside India.

CHAITRI SUDHAKARBHAI KHAROD

ARTICLE

533 Points Posted on 04 May 2020

Yes that I understood but my question is after reinvestment, I have not utilised fully means now there is no requirement of further utilisation for the purpose of business then remaining amount can be used for distribution of dividend? ??