India - Income Tax Act 2010 - Saarc

1.427 CH. VIA - DEDUCTIONS IN RESPECT OF CERTAIN INCOMES S. 80HHC(ii) minerals 62 and ores 63 [(other than 62 processed minerals and oresspecified in the Twelfth Schedule)].64[Explanation 1.—The sale proceeds referred to in clause (a) shall be deemed tohave been received in India where such sale proceeds are credited to a separateaccount maintained for the purpose by the assessee with any bank outside Indiawith the approval of the Reserve Bank of India.Explanation 2.—For the removal of doubts, it is hereby declared that where anygoods or merchandise are transferred by an assessee to a branch, office,warehouse or any other establishment of the assessee situate outside India andsuch goods or merchandise are sold from such branch, office, warehouse orestablishment, then, such transfer shall be deemed to be export out of India ofsuch goods and merchandise and the value of such goods or merchandisedeclared in the shipping bill or bill of export as referred to in sub-section (1) ofsection 50 65 of the Customs Act, 1962 (52 of 1962), shall, for the purposes of thissection, be deemed to be the sale proceeds thereof.]66[(3) For the purposes of sub-section (1),—(a) where the export out of India is of goods or merchandise manufactured67 [or processed] by the assessee, the profits 68 derived from suchexport shall be the amount which bears to the profits 69 of thebusiness 69 , the same proportion as the export turnover in respect ofsuch goods bears to the total turnover of the business carried on bythe assessee ;(b) where the export out of India is of trading goods, the profits derivedfrom such export shall be the export turnover 69 in respect of suchtrading goods as reduced by the direct costs and indirect costsattributable to such export ;(c) where the export out of India is of goods or merchandise manufactured70 [or processed] by the assessee and of trading goods, the profitsderived from such export shall,—(i) in respect of the goods or merchandise manufactured 70 [orprocessed] by the assessee, be the amount which bears to theadjusted profits of the business, the same proportion as theadjusted export turnover in respect of such goods bears to theadjusted total turnover of the business carried on by theassessee ; and62. For the meaning of the terms “minerals” and “other than”, see Taxmann’s Direct TaxesManual, Vol. 3.63. Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1991.64. Inserted, ibid., w.e.f. 1-4-1992.65. For text of section 50 of the Customs Act, 1962, see Appendix.66. Substituted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1992. Prior to substitution, subsection(3) was substituted by the Finance Act, 1990, w.e.f. 1-4-1991.67. Inserted by the Finance Act, 1992, w.e.f. 1-4-1992.68. For the meaning of the term “profits”, see Taxmann’s Direct Taxes Manual, Vol. 3.69. For the meaning of the terms “profits”, “business” and “turnover”, see Taxmann’s DirectTaxes Manual, Vol. 3.70. Inserted by the Finance Act, 1992, w.e.f. 1-4-1992.