Exemtion u/s 10A

[Asked by Guest]

A private limited company incorporated on May 2006 was in the field of BPO( 100% export of structural design) in the A.Y 2006-07 and later in february 2007 got registered under Software Technology Park (STPI).Will they get exemtion under section 10A for the A.Y 2007-08

[ranganath shenoy]

The unit can be considered having started its production activity in STPI only from the date of having enterd into agreement with STPI.Therefore you will get the benefit only in respect of work done after registration and not in respect of the entire financial year

AI Summary

Exemption under section 10A applies only from STPI registration, so tax benefit is not retroactive to earlier operations.
Exemption under section 10A applies only to income from operations undertaken after the unit has entered into the STPI registration/agreement; the benefit is limited to work performed subsequent to registration and cannot be claimed for the entire financial year that predates the registration.