||NATURE OF BUSINESS
||(a) Manufacture or produce an eligible articles or thing; or
(b) Undertakes Substantial Expansion to manufacture or produce eligible articles or thing; and
(c) Carries on ‘eligible business’
|Between – 1 April 2007 To 31 March 2017
|NORTH-EASTERN STATES being the states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim & Tripura.
||(a) Should not be formed by SPLITTING UP, or the RECONSTRUCTION of a business already in existence; or
(b) Not formed by TRANSFER of Plant & Machinery used for any purpose.
However, if any ‘second-hand’ Plant & Machinery, used outside India by any person other than the assessee, & imported into India, shall not be regarded as Transfer of Plant & Machinery.
Further, where, the total value of the Plant & Machinery, transferred does not exceed 20% of the Total Value of Plant & Machinery used in the Business, the above condition is deemed to be complied with.
||SEPARATE ACCOUNTS &
- Separate Accounts are required for Eligible Business.
- Accounts are required to be Audited by a Chartered Accountant.
- To furnish Audit Report in Form No. 10CCB, alongwith Return of Income.
|POWER OF AO TO RECOMPUTE PROFITS:
- Transfer of any goods or services held for the purpose of any other business to the eligible
- Business other than Fair Market Value (FMV).
- Owing to close connection between the assessee & any other person, the course of business is so
- Arranged that the business between them produces more than ‘ordinary profits.’
||AMOUNT OF DEDUCTION
||100% of the Profits & Gains DERIVED from such business
||PERIOD OF DEDUCTION
||10 Consecutive Assessment Years Commencing with the Assessment Year in which the undertaking begins to Manufacture or Produce Articles or Things, or Completes Substantial Expansion.
|1ST Preference Partnership Firm
No provision for Interest on Capital & Remuneration To Working Partners
2ND Preference Company – considering Capital Requirements.
3RD Preference Sole Proprietorship – Only if Capital Requirements can be met by Proprietor without borrowings from Related Parties.