Hi,
Sec 10B exempts the profits of 100% EOU for 10 consecutive years. Now an existing firm puts up a new unit for its export operation and registered the same under EOU with MEPZ.
Is it necessary to maintain books of accounts seperately for these 2 units under the same firm.
Separate Books Required for New Export Unit to Qualify for Tax Exemption Under Section 10B of Income Tax Act A query was raised regarding the necessity of maintaining separate books of accounts for a new export unit established by an existing firm and registered under EOU with MEPZ, in relation to Section 10B of the Income Tax Act, which provides a tax exemption for 100% EOUs for 10 years. The response advised that separate books are indeed necessary to accurately determine the profits eligible for exemption under Section 10B. It also cautioned that proper record-keeping is essential due to potential scrutiny and litigation by tax authorities. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
