Tuesday, 3 May 2016

India Taxes- Due Date Alert for the month May 2016

Tax Saving Proof required from Employee

To read the latest  circular please click the link below.


https://taxofindia.wordpress.com/2016/05/03/tax-saving-proof-required-from-employee/



Understanding Turnover exemption u/s 10A of the Income tax act, 1961.


In respect of claim of exemption u/s 10A, 10AA & 10B, still there is lot of confusion is there between taxpayer and the tax officer. Given below chart based on the latest judicial pronouncement will help to reduce such confusion. 

SN
Items
Included in Turnover
Excluded in Turnover
1
Foreign currency transactions
CIT v. Tata Elxsi Ltd.
382 ITR 654
 
2
Income from sale of scrap, export incentives, interest income and gains on exchange rate fluctuation
Wipro Ltd. v. Deputy CIT
382 ITR 179 
Watson Pharma P. Ltd. v. Deputy CIT
VOL 37 PG 97
GE BE P. Ltd. v. Asst. CIT
371 ITR 32
 
3
Only freight, telecommunication charges or insurance attributable to delivery of computer software outside India or expenses incurred in foreign exchange in providing technical services outside India to be excluded from total turnover. Also Travelling expenses.
 
CIT v. Hewlett Packard Global Soft Ltd
381 ITR 99
 
Aptean Software India P. Ltd. v . ITO
VOL 41 PG 246
 
Cypress Semiconductor Technology India P. Ltd. v. Deputy CIT
VOL 39 PG 468
 
Tektronix Engineering Devt. India P. Ltd. v. Deputy CIT
VOL 39 PG 212
 
ACIT v.Think Soft Global Services (P.) Ltd
34 ITR 633
4
Lease line charges excluded from export turnover--To be excluded from total turnover
 
Sun Life India Service Centre P. Ltd. v. Deputy CIT-VOL 43 PG 511
5
Travelling expenses incurred in foreign currency to be reduced both from export turnover and total turnover
 
iNautix Technologies India P. Ltd. v. Asst. CIT
-          VOL 42 PG 324
McAfee Software (India) P. Ltd. v. Dy. CIT
VOL 40 PG 574
6
Expenses excluded from export turnover to be excluded from total turnover
 
Deputy CIT v . WS Atkins India P. Ltd.
VOL 41 PG 397
 
Dy. CIT v . Timken India Manufacturing P. Ltd.
VOL 41 PG 208
 
e4e Business Solutions India P. Ltd. v . Dy. CIT
VOL 41 PG 90
 
Torry Harris Business Solutions P. Ltd
VOL 40 PG 256
7
Profits arising out of fluctuation of rates of foreign exchange--Form part of export turnover-
Universal Precision Screws v. Asst. CIT
VOL 38 PG 233
 
8
Sale of scrap--Proceeds not includible in turnover
 
Universal Precision Screws v. Asst. CIT
VOL 38 PG 233
 
 
 
 

 

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