Doing Business in India - RSM Austria

Section
Details of Exemption / Deduction
* The deduction is allowed only on creation of
a specified reserve, which is utilized for
specified purposes.
Period
Quantum
of Deduction
10AA
For any new eligible unit set up in a Special
Economic Zone ('SEZ') on or after 1 April
2005.
Exemption is available to the entrepreneur
as referred to in Section (2j) of SEZ Act,
2005 for profits derived from export of
a r t i c l e s o r t h i n g s o r s e r v i ces,
manufactured, or produced or provided
any services by an eligible unit.
There is no restriction on realisation of the
export proceeds within a particular time
frame for the purpose of claiming the
deduction.
The profits and gains derived from on-site
development of computer software
(including services for development of
software) outside India shall be deemed to
be the profits and gains derived from the
export of computer software outside India.
The term manufacturing includes
processing such as cutting, polishing and
as such cutting, polishing of precious and
semi-precious stones can be entitled to
this exemption.
As per amendment made by Finance (No.2)
Act, 2009, the deduction under this
section is to be computed in the same
proportion, which the export turnover of
the eligible unit bears with the total
turnover of the said unit with effect from
FY 2009-10. Now as per the Act, the
benefit will be available to the assessee
i n t h e s a i d p r o p o r t i o n , w i t h
retrospective effect from FY 2005-06.
The benefit under this section will be
available if :
the unit is not formed by splitting up
or reconstruction of a business
already in existence subject to
certain exceptions.
the unit is not formed by transfer of
machinery and plant previously used
for any purpose to the new business
subject to certain exceptions.
First 5 years
Next 5 years
Next 5 years+
100%
50%
50%
+ The deduction is allowed only on creation
of a specified reserve, which is required to
be utilized for specified purposes.
DOING BUSINESS IN INDIA 101