Closure of Unit

[Guest]

Hello,

We have opened Unit in Uttaranchal under 80IC in 2007-08. 100% IT exemption was allowable upto 31.03.2012.

We have opened another unit also in Uttaranchal Under 80IC in 2010-11. 100% IT expemption will be allowable upto 31.03.2015. My queries are

1.Can we close Unit I from 1st April'2012 and shift  the transactions to Unit II for availling 100% IT expemption.

2.Can we transfer the closing stock in Unit I to Unit II from 1-4-2012.

3.Can we transfer all the other balances(debtors,Creditors) from Unit I to Unit II w.e.f 01.04.2012.

Please advice me to proceed in a better way.

Uday.

AI Summary

Inquiring about transferring operations between units for tax benefits under Section 80IC; no specific provision exists, demerger proposed. A user inquired about closing a unit in Uttaranchal, which was established under Section 80IC for tax exemption, and shifting operations to another unit to continue benefiting from tax exemptions. They asked if they could transfer transactions, closing stock, and balances from Unit I to Unit II. A respondent suggested there is no specific provision for such a transfer but proposed creating a new company and demerging Unit I to claim the exemption under 80IC.