TMI BlogSpecial provisions in respect of newly established Units in Special Economic Zones.X X X X Extracts X X X X X X X X Extracts X X X X ..... e following deduction shall be allowed ]- ( i ) hundred per cent of profits and gains derived from the export, of such articles or things or from services for a period of five consecutive assessment years beginning with the assessment year relevant to the previous year in which the Unit begins to manufacture or produce such articles or things or provide services, as the case may be, and fifty per cent of such profits and gains for further five assessment years and thereafter; ( ii ) for the next five consecutive assessment years, so much of the amount not exceeding fifty per cent of the profit as is debited to the profit and loss account of the previous year in respect of which the deduction is to be allowed and credited to a reserve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y be specified by the Central Board of Direct Taxes in this behalf, under clause (b) of sub-section (1B) of section 10A have been furnished by the assessee in respect of machinery or plant along with the return of income for the assessment year relevant to the previous year in which such plant or machinery was first put to use. (3) Where any amount credited to the Special Economic Zone Re-investment Reserve Account under clause (ii) of sub-section (1),- (a) has been utilised for any purpose other than those referred to in sub-section (2), the amount so utilised; or (b) has not been utilised before the expiry of the period specified in sub-clause (i) of clause (a) of sub-section (2), the amount not so utilised, shall be deemed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the assessment year relevant to the previous year in which the Unit began to manufacture, or produce or process such articles or things or services in such free trade zone or export processing zone : Provided also that where a Unit initially located in any free trade zone or export processing zone is subsequently located in a Special Economic Zone by reason of conversion of such free trade zone or export processing zone into a Special Economic Zone and has completed the period of ten consecutive assessment years referred to above, it shall not be eligible for deduction from income as provided in clause (ii) of sub-section (1) with effect from the 1st day of April, 2006. 2 [ (4) This section applies to any undertaking, being th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t authority means the Reserve Bank of India or the authority authorised under any law for the time being in force for regulating payments and dealings in foreign exchange. Explanation 2. The sale of goods or provision of services shall be deemed to have been received in India where such export turnover is credited to a separate account maintained for that purpose by the assessee with any bank outside India with the approval of the Reserve Bank of India. ] (5) Where any undertaking being the Unit which is entitled to the deduction under this section is transferred, before the expiry of the period specified in this section, to another undertaking, being the Unit in a scheme of amalgamation or demerger,- (a) no deduction shall be ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and word 1st April, 2006 had been substituted; (b) for the word undertaking , the words undertaking, being the Unit had been substituted. (9) The provisions of sub-section (8) and sub-section (10) of section 80-IA shall, so far as may be, apply in relation to the undertaking referred to in this section as they apply for the purposes of the undertaking referred to in section 80-IA. 5 [(10) Where a deduction under this section is claimed and allowed in respect of profits of any of the specified business, referred to in clause (c) of sub-section (8) of section 35AD, for any assessment year, no deduction shall be allowed under the provisions of section 35AD in relation to such specified business for the same or any other assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its and gains derived from on site development of computer software (including services for development of software) outside India shall be deemed to be the profits and gains derived from the export of computer software outside India. ] ********************** Notes :- 1. Inserted by the Special Economic Zones Act, 2005, w.e.f. 10-2-2006. 2. Substituted by the Finance Act, 2007, w.r.e.f. 10-2-2006. Prior to its substitution, sub-section (4) read as under : (4) This section applies to any undertaking being the Unit, which has begun or begins to manufacture or produce articles or things or services during the previous year relevant to the assessment year commencing on or after the 1st day of April, 2006, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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