Clarification regarding allowability of deduction under section 10 A/ 10AA on transfer of Technical Man-power in the case of software industry.

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....lhi, the 8th October, 2014 Subject : Clarification regarding allowability of deduction under section 10 A/ 10AA on transfer of Technical Man-power in the case of software industry. CBDT had issued Circular No.12/2014 dated 18^th July, 2014 to clarify that mere transfer or re-deployment of existing technical manpower from an existing unit to a new SEZ unit in the first year of commencement of....

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....f Rangachary Committee, which was set up to review the taxation of IT Sector and Development Centers. 3. The matter has been re-examined by the Board. In supersession of the Circular No.12/2014 dated 18th July 2014, it has now been decided that the transfer or re-deployment of technical manpower from existing unit(s) to a new unit located in SEZ. in the first year of commencement of business, s....

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.... 5. For the sake of clarity, it is stated that the assessee will have choice of  complying with any one of the two alternatives given in Paras 3 and 4 above. 6. It is also clarified that this Circular shall be applicable only in the case of assessees engaged in the development of software or in providing IT Enabled Services in SEZ units eligible for deduction u/s 10A or u/s 10AA of the Ac....