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TMI BlogEligibility of 100% EOU to get the exemption u/s 10 BX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear All, I have an doubt to clarify about the deduction U/s 10B of Income Tax Act, 1961 . for the export made through 100% EOU. A 100% EOU has an contractual agreement with third party[MMTC], as a service buyer, that the 3rd party [MMTC]has to complete the export sale with the foreign buyer located by the 100% Export oriented unit. The contract entered between MMTC 100% EOU and the price a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re INR equivalent to the USD [$] as on the date of sale realization received by the service buyer. The Seller[100% EOU] raise the invoice on Service Buyer in USD[$] after the completion of the shipment. The payment has been released by the service buyer in INR equivalent to the total USD[$] as per invoice raised by 100% Export oriented unit. I feel that the foreign exchange conversion done by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service buyer since he received the foreign exchange. Further in the shipping bill the service buyer given the declaration that 100% EOU is the manufacturer Exporter. Please clarify the doubts whether the 100% EOU is eligible to get the exemption u/s 10B a) As 100% Export b) As Deemed Export Kamal Kumar Bagaria. - Reply By Surender Gupta - The Reply = There was a concept of disclaimer certi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficate u/s 80HHC for the purpose of allowance of deduction to supporting manufacturer. In this case also, the status of 100% EOU appears to be a supporting manufacturer which is attracting the provisions of section 10B . There is corresponding provision u/s 10B which allowed exemption on the basis of disclaimer certificate. - Reply By R.S. Mangal - The Reply = There is no concept of deemed ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port in sec. 10B of income tax act, 1961 . in case of third party export made by 100% EOU, the benefit under 10B is not available. though such deemed export is counted towards fulfilment of export obligation/NFE under para 6.9 of the FTP. - Eligibility of 100% EOU to get the exemption u/s 10 B - Query Started By: - Adoni Raghavendra Dated:- 22-9-2009 Income Tax - Got 2 Replies - Income Tax - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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