sejal architectural glass limited - Securities and Exchange Board of ...

Benefits available to Mutual Funds
In case of a shareholder being a Mutual fund, as per the provisions of Section 10(23D) of the
Act, any income of Mutual Funds registered under the Securities and Exchange Board of India
Act, 1992 or Regulations made there under, Mutual Funds set up by public sector banks or
public financial institutions and Mutual Funds authorized by the Reserve Bank of India would be
exempt from Income Tax, subject to the conditions as the Central Government may by
notification in the Official Gazette specify in this behalf.
Benefits available to Venture Capital Companies /Funds
In case of a shareholder being a Venture Capital Company / Fund, as per the provisions of
Section 10(23FB) of the Act, any income of Venture Capital Companies / Funds registered with
the Securities and Exchange Board of India, would exempt from Income Tax, subject to the
conditions specified.
Benefits available under The Wealth Tax Act, 1957
As per the prevailing provisions of the above Act, no Wealth Tax shall be levied on value of
shares of the Company.
Benefits available under The Gift Tax Act, 1958
Gift tax is not leviable in respect of any gifts made on or after 1st October 1998. Therefore,
any gift of shares will not attract gift tax.
Benefit to the Company under the Dadra And Nagar Haveli Sales Tax Act and the Central
Sales Tax Act, 1956
The Company, a Medium Scale Industrial Unit, was exempted from payment of Central Sales
Tax levied under the Central Sales Tax Act in respect of certain goods, manufactured /
processed in the Union Territory of Dadra and Nagar Haveli by it, w.e.f. 31.01.2000 for the
period of 15 years. However, the Central Sales Tax Act was amended w.e.f. 01.06.2002 and in
terms of the amendment, the exemption from payment of Central Sales Tax was restricted to
Inter state sales effected only against submission of “C” forms and in case of consignment sales
and stock transfers, against submission of form ‘F’. In the absence of “C” form and / or as the
case may be “F” form, the exemption from payment of Central Sales Tax stands withdrawn.
Notes:
1. All the above possible benefits are as per the current tax laws as amended by the Finance
Act, 2007.
2. All the stated possible benefits are as per the current tax law and will be available only to
the sole / first named holder in case the shares are held by joint holders.
3. In respect of non-residents, the tax rates and the consequent taxation mentioned above
shall be further subject to any benefits available under the double taxation avoidance
agreements, if any, between India and the country in which the non-resident has fiscal
domicile.
4. In view of the individual nature of tax consequences, each investor is advised to consult his
/ her /its own tax advisor with respect to specific tax consequences of his / her /its
participation in the scheme. The shareholder is also advised to consider in his / her / its
own case, the tax implications of an investment in the Equity Shares, particularly in view of
the fact that certain recently enacted legislations may not have direct legal precedent or
may have a different interpretation on the benefits which an investor can avail.
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