Section 10BA of Income Tax Act "Special provisions in respect of export of certain articles or things"
10BA. (1) Subject to the provisions of this section, a
deduction of such profits and gains as are derived by an
undertaking from the export out of India of eligible
articles or things, shall be allowed from the total income
of the assessee :
Provided that where in computing the total income of the
undertaking for any assessment year, deduction under section
10A or section 10B has been claimed, the undertaking shall
not be entitled to the deduction under this section :
Provided further that no deduction under this section shall
be allowed to any undertaking for the assessment year
beginning on the 1st day of April, 2010 and subsequent
years.
(2) This section applies to any undertaking which fulfils
the following conditions, namely :-
(a) it manufactures or produces the eligible articles or
things without the use of imported raw materials;
(b) it is not formed by the splitting up, or the
reconstruction, of a business already in existence :
Provided that this condition shall not apply in respect of
any undertaking which is formed as a result of the
re-establishment, reconstruction or revival by the assessee
of the business of any such undertaking as is referred to in
section 33B, in the circumstances and within the period
specified in that section;
(c) it is not formed by the transfer to a new business of
machinery or plant previously used for any purpose.
Explanation.-The provisions of Explanation 1 and Explanation
2 to sub-section (2) of section 80-I shall apply for the
purposes of this clause as they apply for the purposes of
clause (ii) of sub-section (2) of that section;
(d) ninety per cent or more of its sales during the previous
year relevant to the assessment year are by way of exports
of the eligible articles or things;
(e) it employs twenty or more workers during the previous
year in the process of manufacture or production.
(3) This section applies to the undertaking, if the sale
proceeds of the eligible articles or things exported out of
India are received in or brought into, India by the assessee
in convertible foreign exchange, within a period of six
months from the end of the previous year or, within such
further period as the competent authority may allow in this
behalf.
Explanation.-For the purposes of this sub-section, the
expression "competent authority" means the Reserve Bank of
India or such other authority as is authorised under any law
for the time being in force for regulating payments and
dealings in foreign exchange.
(4) For the purposes of sub-section (1), the profits derived
from export out of India of the eligible articles or things
shall be the amount which bears to the profits of the
business of the undertaking, the same proportion as the
export turnover in respect of such articles or things bears
to the total turnover of the business carried on by the
undertaking.
(5) The deduction under sub-section (1) shall not be
admissible, unless the assessee furnishes in the prescribed
form, along with the return of income, the report of an
accountant, as defined in the Explanation below sub-section
(2) of section 288, certifying that the deduction has been
correctly claimed in accordance with the provisions of this
section.
(6) Notwithstanding anything contained in any other
provision of this Act, where a deduction is allowed under
this section in computing the total income of the assessee,
no deduction shall be allowed under any other section in
respect of its export profits.
(7) The provisions of sub-section (8) and sub-section (10)
of section 80-IA shall, so far as may be, apply in relation
to the undertaking referred to in this section as they apply
for the purposes of the undertaking referred to in section
80-IA.
Explanation.-For the purposes of this section,-
(a) "convertible foreign exchange" means foreign exchange
which is for the time being treated by the Reserve Bank of
India as convertible foreign exchange for the purposes of
the Foreign Exchange Management Act, 1999 (42 of 1999), and
any rules made thereunder or any other corresponding law for
the time being in force;
(b) "eligible articles or things" means all hand-made
articles or things, which are of artistic value and which
requires the use of wood as the main raw material;
(c) "export turnover" means the consideration in respect of
export by the undertaking of eligible articles or things
received in, or brought into, India by the assessee in
convertible foreign exchange in accordance with sub-section
(3), but does not include freight, telecommunication charges
or insurance attributable to the delivery of the articles or
things outside India;
(d) "export out of India" shall not include any transaction
by way of sale or otherwise, in a shop, emporium or any
other establishment situate in India, not involving
clearance of any customs station as defined in the Customs
Act, 1962 (52 of 1962).
What are the Definitions under Income Tax 1961? Section 2 of Income Tax Act 1961
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What is Dividend income? Section 8 of Income Tax Act 1961
What is Income deemed to accrue or arise in India? Section 9 of Income Tax Act 1961
What are the Incomes not included in total income? Section 10 of Income Tax Act 1961
What is Meaning of computer programmes in certain cases? Section 10BB of Income Tax Act 1961