I.TAX BENIFITS IN EOI (100%)

Querist : Anonymous (Querist) 23 November 2009 This query is : Resolved
HI ALL DEARS
WE HAVE BEEN TAKEN EOU PERMSN FOR NEW UNIT IN YR2009.10 INVESTMNT & MACHINRY ALSO READY. BUT WE NOT STRATED OUR MANUFACTRING STILL. WE NEED KNOW THAT FROM WHICH YEAR EXMPTION WILL TAKE PLACE FOR SAVING OF PROFIT ,OR NOT TO PAY I.TAX ON PRIFIT . WE R IN NOIDA BUT NOT IN EXPORT ZONE. EXEMPTION WILL ALOW FOR WHICH PERIOD TO WHICH YR. IT IS COMPLSURY TO TAKE SALES /PUR. IN THIS YERA OR WE TAKE IN NEXT YEAR SO THAT WE ACN SAVE FULL YEAR, TAX PURPOSE. PLS HELP US ON THIS MATER . ANY SE.I.TAX IS THERE ?

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Vineet (Expert) 23 November 2009
Your query is quite vague considering the importance of issue.

Exemption to 100% EOU is available u/s 10B of the Income Tax subject to fulfilment of all conditions prescribed therein. The exemption is 90% of the profits dervived from such export and available for 10 consecutive assessment years from the assessment year relevant to year in which manufacturing is commenced. However, as the law stands as on date, no exemption will be allowed under this section wef 1-4-2012. That means as on date exemption is available only for the profits earned in FY 2009-10 and 2010-11 if you commence manufacturing in the current year.

Raj Kumar Makkad (Expert) 23 November 2009
Nothing to add more in the well defined provisions by Vineet.

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