Doing Business in India - RSM Austria

No deduction under 80IA, 80IB, 80IAB, 80IC, 80ID, 80IE will be allowed unless the
assessee files return of income within the due date specified under section 139(1).
With retrospective effect from FY 2002-03
Deduction in respect of profits and gains shall not be allowed under any
provisions of section 10A or section 10AA or section 10B or section 10BA of the IT
Act or under any provisions of Chapter VIA under the heading "C.-Deductions in
respect of certain incomes" in any assessment year, if a deduction in respect of
same amount is claimed and allowed under the various provisions referred above
in such assessment year;
The aggregate of the deductions under the various provisions referred above,
shall not exceed the profits and gains of the undertaking or unit or enterprise or
eligible business, as the case may be;
No deductions under the various provisions referred above, shall be allowed if the
deduction has not been claimed in the return of income.
With retrospective effect from FY 2008-09, the transfer price of goods and services
between the undertaking or unit or enterprise or eligible business and any other
undertaking or unit or enterprise or business of the assessee shall be determined at the
market value of such goods or services as on the date of transfer.
As per Finance Act 2010, no deduction, claimed and allowed in respect of any of the
specified business referred to in 35AD(8)(c) for any AY, shall be allowed under chapter
VI A under the heading 'C-Deduction in respect of certain income' for the same or any
other AY.
2.4.2 Tonnage tax on shipping companies
Indian shipping companies are taxed on a presumptive basis. Tax is levied on the
notional income of the shipping company arising from the operation of ships at
normal corporate tax rates. The notional income is determined in a prescribed
manner on the basis of the tonnage of the ship. Tax is payable even in the case of
loss. The scheme is applicable to the shipping companies that are incorporated
under the Indian Companies Act (with its effective place of management in India)
with at least one ship with minimum tonnage of 15 tonnes and holding a valid
certificate under the Merchant Shipping Act, 1959. Shipping companies have an
option to opt for the scheme or for taxation under normal income-tax provisions.
Once the scheme has been opted for, it would apply for a mandatory period of ten
years and other income-tax provisions would not apply.
2.5 Transfer Pricing Regulations
The Finance Act, 2001 (effective from 1 April 2001) has inserted new sections 92 to
92F in the Income-tax Act, 1961 to facilitate determination of the proper taxation
methodology of the international transactions between ‘associated enterprises’
having regard to arm’s length principles. As per the transfer pricing regulations, it is
required that any income arising from an international transaction is to be
computed at the arm’s length price. It is also provided that to arrive at such income,
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DOING BUSINESS IN INDIA