Rule 2E - Guidelines for approval under clause (23G) of section 10

Approval for eligible business status enables tax exemption eligibility subject to documentation, auditing and withdrawal on noncompliance.

An enterprise seeking approval under clause (23G) of section 10 must apply in the prescribed form with proof of constitution, an approved project report or agreement, and appropriate financial statements; the Central Government approves only enterprises wholly engaged in the eligible business and may demand further documents or enquiries. Approved enterprises must keep books, obtain an audit by a qualified accountant and submit the audit report to the Chief Commissioner by the return filing due date. The Chief Commissioner reports failures to the Central Government, which may withdraw approval after affording a hearing.