Moving from STP to SEZ

[KR Ramesh]

Hi

Can any body advice if an existing STP Unit be moved to SEZ area and get the Income Tax exemption as per 80IA? If yes,

1) What are the condition to be fulfilled?

2) For how long the Income Tax Benefit would be available?

3) How the Tax benefit are being allocated?

Many thanks in advance

Regards

Ramesh

[YAGAY andSUN]

Since the SUNSET clause has been extended for next one year .  You will be able to reap the benefits of exemptions as stipulated in the Income Tax Act.

AI Summary

Income Tax exemption under 80IA available when an STP shifts to SEZ following extension of sunset clause allowing continued benefits. An existing STP unit relocated to an SEZ may continue to claim Income Tax exemption if it satisfies the prescribed eligibility and procedural conditions; an extension of the sunset clause for a further year permits such migrating units to avail the exemption under the relevant legislation, subject to compliance and the rules governing allocation of tax benefits.