EXPLANATORY NOTES TO THE PROVISIONS OF THE FINANCE ACT, 2008
CIRCULAR NO. 1/ 2009, DATED 27th MAR, 2009
9. Extension of time limit for availing deduction under section 10A and 10BOnline GST Certification Course by TaxGuru & MSME- Click here to Join
9.1 100% deduction on exports profits is allowed to an undertaking, if-
(i) the undertaking is set up in a free trade zone, Software Technology Park, Electronic Hardware Technology Park or a special economic zone and is engaged in the manufacture or production of articles or things or computer software; ( section 10A)
(ii) the undertaking is declared as a hundred per cent export-oriented undertaking engaged in the manufacture or production of articles or things or computer software. (section 10B).
9.2 The deduction is available for a period of ten consecutive assessment years beginning with the initial assessment year in which the undertaking begins to manufacture or produce the article or things or computer software. However, no deduction was allowable, under these sections, to any undertaking beyond the assessment year 2009-10.
9.3 Section 10A and section 10B have now been amended to extend the sun-set date under these sections to assessment year 2010-11. Hence, no deduction will, therefore, be available under these sections beyond assessment year 2010-11.
9.4 Applicability: These amendments have been made applicable with effect from 1st April, 2008 and shall accordingly apply for assessment year 2008-09 and subsequent assessment years.