Sec 10B Exemption, Income Tax

[CHITRA RAGURAM]

Hi,

Sec 10B exempts the profits of 100% EOU for 10 consecutive years. Now an existing firm puts up a new unit for its export operation and registered the same under EOU with MEPZ. 

Is it necessary to maintain books of accounts seperately for these 2 units under the same firm.

Posts / Replies

[MOHAN S]

Hi Chithra,

Kindly go through the Rules prescribed u/s 10B. Yes it is certainly necessary to maintain sepearte books for the two export so that the Assessing Officer can ascertain the profit claimed to be exempt u/s 10B is properly arrived at. 

A word of caution: Please advise your client to keep all records in respect of "Exempted Units" properly as ther are lot of litigation and the department (Very unfortunately) treats such units with an eye of suspicion always.

Mohan