IOAA

Eligible Assessee

* Any Assessee having total income

comprise of Inc from Mlf/produce-articles or things

or Computer software, in an SEZ.

* ded'n allowed only approval got Before 1.4.2020 [Business should not Be formed

* ded'n allowed only Mlf produce of article/things cos I C. s By Spilitting, Re constitution of Existing Business]

up to 31/3/2021.

So from 1/4/2021- Fresh Mlf Bus- SEZ X

Deduction:- Idea'n after claiming all Chp Vi A]

Years amt of dedin

1- 5 (1'ᵗsyrs) 100 % of Export profit *

6- 10 /2ⁿᵈ5 yrs) 50 % of Export profit *

11-15 (3ʳᵈ 5 yrs) Amt transfer to SEZ Re-invst a (c (or)

50-1- of Export profit" (WEL)

* Export profit:-
purp inc of sez × Export turnover of SEZ unit] -"Export profit"
[
total turnover of Sez unit

Imp Points on Export profit cal:-

1- PaBp income to Be taken only of SEL unit, If the

assessee is also doing Business in dia.

2- Papp income → under alt includes

* cash compensatory support

But for SEZ E-P
* Duty Draw Back.
Cal, Not to be included
* profit on sale of Import entitlement.

]. Export turnover:

* Ho by Exporting outside India w.R't SEZ unit.

* Export Ho does not include the following.

(i) Freight

(ii) Telecommunication

(iii) Insurance.

(IV) cash compensatory support

(V) Duty Draw Back.

(vi) profit on sale of Import entitlement.

(vii) Any Exp incurred for Providing service outside India.

* After that the Export to is restricted to the ant

which is Repatriated in Convertable foreign currency to India

within 6M from end of Fy.

4. Total turnover:.

* Total turnover Comprise of Both domestic + Export to

* Total Ho does not include the following.

(i) Freight

(ii) Telecommunication

(iii) Insurance.
(iv) cash compensatory support
(V) Duty Draw Back.

(vi) profit on sale of Import entitlement.

(vii) Any Exp incurred for Providing service outside India.

Other important points: _ .

1- last 5yvs ded'n will Be allowed only amount transfer to

"SEZ Reinvst all" coz ded'n (last 5 yrs) - Amt transfer for,
(If no transfer-"o'
50 t of Export profit ↓
will Be lower)

during last 548 - Transfer to Be made Every Year-For claiming dedin

Amount already transfer- during 1ˢᵗ5yr for, 2ⁿᵈ 5 yr → Not to Be considered.

2. Utilization of ant transfer to SEZ-Reinvst ak:-

Time limit- within 3 yrs from the end of FY of transfer.

Utilized for- Pur lay of Plant & machinery (new] + Put to use within the same period [3urs)

Mis utilization and non utilization:-

In case of Mis utilization - Amt misutilized will Be treated as Income & taxed (PuBP]
- on Py, when misutilization happens- taxable.

In Case of non utilization- If case of non utilization within 3 yrs from end of Fy of transfer

or Not put to use. ] then, on 4ᵗʰ Year - taxable ✓ (Parp)

Amt in reserve should not Be need for distribution of dividend/Profits (or)

remittance outside India as profits, 01 for Creation of any assets outside India.

As Already stated Busines-s should not Be formed

By Spilitting, Re constitution of Existing Business, So the plant a mach

incorporated to SEZ Should Be new.

Exception :-

Up to 20% of total value of Plm used in SEZ can Be Second hand.

Second Hand does not include (not Form part of 20%] the following.

* Pm imported to India, even used outside India,

* That pm was used by any person in India.

* Dep'n of such pm has not Been claimed as per IT act.

So simply All time this land to Be satisfied,

value of second hand PM ✗ 100 ⇒ {20% all time.

total value of Pm in SEZ unit

3- Any amount which is transfer to Reinstate, If its debited to profit loss. then

that should Be disallowed. So PUBP Inc ↑ for the specific Year Export profit cal.

4- Relocation/transfer from one SEZ to other will not affect the dedin.

5- Amal/demerger → from the year of Amal/dem (succession ded will Be claimed By later enting.

6. did' n under IOAA - only ROI filed on/Before dd.

7- Software development aboard at client place would also

constitute as Eligible Business for 10 AA ded' n.

8. Normal dep 'n allowed] in cal PUBP (SEZ) inc

add'n dep'n - allowed ✓ .

9. * If Specified Business 35 AD ✓

then No SEZ IOAA X (vice versa)

* If Presumptive under 44 AD choosen- No SEZ (OAA ded'n ✗

10. When Pm acquired subsequently Sold, Assume for

Wdr → Cost- notional depin [see so wdr)

11. unabsorped depin/ Business loss of SEZ unit can Be off ✗ set off ✓

12- Audit under 44A B ✓ (If not no dedin)