9911796707
TMI BlogDeduction in respect of profits from export of computer software, etc.X X X X Extracts X X X X X X X X Extracts X X X X ..... uting the total income of the assessee, 2 [ a deduction to the extent of the profits, referred to in sub-section (1B), ] derived by the assessee from such business : 3 [ *** ] 4 [Provided that if the assessee, being a company, engaged in the export out of India of computer software, issues a certificate referred to in clause ( b ) of sub-section (4A), that in respect of the amount of the export specified therein, the deduction under this sub-section is to be allowed to a supporting software developer, then the amount of deduction in the case of an assessee shall be reduced by such amount which bears to the total profits derived by the assessee from the export, the same proportion as the amount of the export turnover specified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2003; ( iv ) thirty per cent thereof for an assessment year beginning on the 1st day of April, 2004 ,] and no deduction shall be allowed in respect of the assessment year beginning on the 1st day of April, 2005 and any subsequent assessment year. ] (2) The deduction specified in sub-section (1) shall be allowed only if the consideration in respect of the computer software referred to in that sub-section is 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, 9 [ within such further period as the competent authority may allow in this behalf ]. Explanation 10 [ 1 ].- The said consideration shall be deemed to have bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arried on by the assessee. ] (4) 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. 13 [ (4A) The deduction under sub-section (1A) shall not be admissible unless the supporting software developer furnishes in the prescribed form along with his return of income,- ( i ) 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 on the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the consideration in respect of computer software received in, or brought into, India by the assessee in convertible foreign exchange in accordance with sub-section (2), but does not include freight, telecommunication charges or insurance attributable to the delivery of the computer software outside India or expenses, if any, incurred in foreign exchange in providing the technical services outside India; 15 [ ( ca ) exporting company means a company referred to in sub-section (1) making actual export of computer software; ] ( d ) profits of the business means the profits of the business as computed under the head Profits and gains of business or profession as reduced by- ( 1 ) ninety per cent of any receipts by way of brok ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rted by the Finance Act, 2000, w.e.f. 1-4-2001. 8. Substituted by the Finance Act, 2001, w.e.f. 1-4-2002. Prior to their substitution, clauses (ii), (iii) and (iv) read as under : (ii) sixty per cent of such profits for an assessment year beginning on the 1st day of April, 2002; (iii) forty per cent of such profits for an assessment year beginning on the 1st day of April, 2003; (iv) twenty per cent of such profits for an assessment year beginning on the 1st day of April, 2004, 9. Substituted for the portion beginning with the words where the Commissioner and ending with the words may allow in this behalf by the Finance Act, 1999, w.e.f. 1-6-1999. Prior to substitution, the said portion was inserted by the Finance (N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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