U/s 10 B of Income Tax Act

[Asked by Guest]

U/s section 10B Amount Excluded from export turnover should also be excluded from total turnover. There is evidence inherent in the definition of ‘export turnover’ itself that it should represent “consideration” for export of the articles or things or computer software. It follows that the expression ‘total turnover’ which is not defined in section 10B should also be interpreted in the same manner. Thus the items of expenses referred to in the definition of ‘export turnover’ cannot form part of the total turnover since the receipts by way of recovery of such expenses cannot be said to represent consideration for the goods exported. In this behalf, it must be borne in mind that total turnover is nothing but the aggregate of the domestic turnover and the export turnover. So it should be interpreted in the same manner. mu queries are 1) Is there any case law / judgement to support 2) Any suggestin / wayout on the above issue

AI Summary

Export turnover exclusion: non consideration receipts must be excluded from both export and total turnover under 10B computation.
Receipts that do not represent consideration for exported articles, things or computer software - including recoveries of freight, telecom charges, insurance and expenses in foreign exchange for technical services - are excluded from export turnover and therefore must also be excluded from total turnover; accordingly such items are omitted from both the numerator and denominator of the export deduction computation formula.