section 10 A

[sathyanarayanan kasinathan]

Facts of the Case:  The Company proposes to register itself with the STPI in-order to claim tax benefits available under the Income Tax Act.

Questions:

Can invoice for the period 'June 2009 to December 2009' raised before registration with STPI and still tax exemption claimed for invoices after registration.

If Invoices are dated after registration , for services rendered prior to registration, Is that allowable for tax exemption, Treatment of carried forward losses upto registration date. Any Procedure/conditions to be complied with for converting this existing unit into an STPI.

Any suggestion you may deem fit.

[Surender Gupta]

In my the exemption u/s 10A for SEZ units are available for assessment year basis. Therefore, the invoices raised before getting registration but during the relevant previous year falling under sez exemption, you are very well eligible for the full exemption as per the scheme of section 10A. 

Regarding carried forward losses upto registration date, I am unable to understand the issue since, the exemption is available since commencement of the manufacturing or production, the brought forward losses may be from other activity or business which are not same. Therefore, more details are required to see this issue.

AI Summary

Company Seeks Tax Exemption on Pre-Registration Invoices Under Section 10A; Clarification on Carried Forward Losses Needed. A company intends to register with the Software Technology Parks of India (STPI) to claim tax benefits under the Income Tax Act. The inquiry concerns whether invoices for services rendered before STPI registration, but dated after, are eligible for tax exemption. Additionally, it questions the treatment of carried forward losses up to the registration date and procedures for converting the existing unit into an STPI. The response clarifies that section 10A exemptions for SEZ units are assessed annually, allowing for full exemption on invoices raised before registration within the relevant year. More details are needed for addressing carried forward losses.