Page 138 - DCOM508_CORPORATE_TAX_PLANNING

Unit 6: Tax Planning: FTZ, SEZ and 100 % EOUs

Notes

Notes For the purposes of this section:

1. “Computer software” means:
(a) any computer programme recorded on any disc, tape, perforated media or
other information storage device; or

(b) any customized electronic data or any product or service of similar nature, as

may be notified 20 by the Board, which is transmitted or exported from India
to any place outside India by any means.
2. “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 Regulation Act, 1973 (46 of 1973), and any rules made there
under or any other corresponding law for the time being in force.
3. “Electronic hardware technology park” means any park set up in accordance with the

Electronic Hardware Technology Park (EHTP) Scheme notified by the Government
of India in the Ministry of Commerce and Industry.
4. “Export turnover” means the consideration in respect of export of articles or things or
computer software 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 or computer software outside India or expenses, if any, incurred in foreign
exchange in providing the technical services outside India.
5. “Free trade zone” means the Kandla Free Trade Zone and the Santacruz Electronics
Export Processing Zone and includes any other free trade zone which the Central

Government may, by notification in the Official Gazette, specify for the purposes of
this section.
6. “Relevant assessment year” means any assessment year falling within a period of
ten consecutive assessment years referred to in this section.
7. “Software technology park” means any park set up in accordance with the Software
Technology Park Scheme notified by the Government of India in the Ministry of

Commerce and Industry.
8. “Special economic zone” means a zone which the Central Government may,

by notification in the Official Gazette, specify as a special economic zone for the
purposes of this section.
6.1.3 Consequences of Amalgamation, Demerger and Section 10 A

Where any undertaking of an Indian company which is entitled to the deduction under this

section is transferred, before the expiry of the period specified in this section, to another Indian
company in a scheme of amalgamation or demerger:
(a) no deduction shall be admissible under this section to the amalgamating or the demerged
company for the previous year in which the amalgamation or the demerger takes place;
and
(b) the provisions of this section shall, as far as may be, apply to the amalgamated or the
resulting company as they would have applied to the amalgamating or the demerged
company if the amalgamation or demerger had not taken place.

LOVELY PROFESSIONAL UNIVERSITY 133