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.

[Surender Gupta]

Where the sale proceeds are being received in India in Indian Currency, the benefit of section 10(B) can not be availed. Kindly read the mandatory conditions of sub-section (3) which states that, "(3) This section applies to the undertaking, if the sale proceeds of articles or things or computer software exported out of India are received in, or brought into, India by the assessee in convertible foreign exchange, within a period of six months from the end of the previous year or, within such further period as the competent authority may allow in this behalf."

AI Summary

Export proceeds in convertible foreign exchange required for exemption; receipts in domestic currency disqualify eligibility. Receipts of sale proceeds in Indian domestic currency preclude claiming the income tax exemption under section 10B; sub section (3) requires sale proceeds of exported goods to be received in, or brought into, India by the assessee in convertible foreign exchange within the statutory period, subject to extension by the competent authority.