Income Tax Benifit(Exemption)u\s 10(B)

[Adoni Raghavendra]

An 100% Export Orient Unit exports iron ore products directly to the buyer and also the company exports through third party[MMTC]and the company receives the sale proceeds in indian currencies. Whether Company can get Income Tax Benifit(Exemption)u\s 10(B). Please clarrify. If not what is the other step / fromalities to avail the income tax benifit.

AI Summary

Income tax exemption under Section 10(B) denied for exports with proceeds in Indian currency; foreign exchange required. A 100% Export Oriented Unit inquired about eligibility for an income tax exemption under Section 10(B) when exporting iron ore products directly and through a third party, with sale proceeds received in Indian currency. The response clarified that the exemption cannot be availed if proceeds are received in Indian currency, as Section 10(B) requires that sale proceeds be received in convertible foreign exchange within six months from the end of the previous year, or within an extended period allowed by the competent authority.