Deduction in respect of profits retained for export business
Where an assessee, being an Indian company or a person other 1. Substituted for Income- tax by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 2. Substituted by the Finance Act, 1985, w. e. f. 1- 4- 1986. Prior to the substitution, section 80HHC, as inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983, read as under 80HHC. Deduction in respect of export turnover.-- 1 Where the assessee, being an Indian company or a person other than a company who is resident in India, exports out of India during the previous year relevant to an assessment year any goods or merchandise to which this section applies, there shall, in accordance with and subject to the provisions of this section, be allowed in computing the total income of the assessee, the following deductions, namely- a a deduction of an amount equal to one per cent of the export turnover of such goods or merchandise during the previous year and b a deduction of an amount equal to five per cent of the amount by which the export turnover of such goods or merchandise during the previous year exceeds the export turnover of such goods or merchandise during the immediately preceding previous year. 2 a This section applies to all goods or merchandise other than those specified in clause b if the sale proceeds of such goods or merchandise exported out of India are receivable by the assessee in convertible foreign exchange. b The goods or merchandise referred to in clause a are the following, namely- i agricultural primary commodities, not being produce of plantations ii mineral oil-- than a company resident in India, is engaged in the business of export out of India of any goods or merchandise to which this section applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction of the profits derived by the assessee from the export of such goods or merchandise Provided that if the assessee, being a holder of an Export House Certificate or a Trading House Certificate, hereafter in this section referred to as an Export House or a Trading House, as the case may be, issues a certificate referred to in clause b of sub- section 4A , that in respect of the amount of the export turnover specified therein, the deduction under this sub- section is to be allowed to a supporting manufacturer, then the amount of deduction in the case of the assessee shall be reduced by such amount which bears to the total profits derived 999999. iii minerals and ores and iv such other goods or merchandise as the Central Government may, by notification in the Official Gazette, specify in this behalf. 3 No deduction under clause b of sub- section 1 shall be allowed unless the assessee had, during the immediately preceding previous year, exported out of India goods or merchandise to which this section applies. 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 Regulation Act, 1973 46 of 1973 , and any rules made thereunder b export turnover means the sale proceeds of any goods or merchandise exported out of India, but does not include freight or insurance attributable to the transport of the goods or merchandise beyond the customs station as defined in the Customs Act, 1962 52 of 1962 . 4. Substituted by the Finance Act, 1988, w. e. f. 1- 4- 1989. Prior to the substitution, subsection 1 , as amended by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986, w. e. f. 1- 4- 1987, read as under 1 Where an assessee, being an Indian company or a person other than a company resident in India, is engaged in the business of export out of India of any goods or merchandise to which this section applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction equal to the aggregate of- a four per cent of the net foreign exchange realisation and b fifty per cent of so much of the profits derived by the assessee from the export of such goods or merchandise as exceeds the amount refer- red to in clause a Provided that the deduction under this sub- section shall not exceed the profits derived by the assessee from the export of such goods or merchandise Provided further that an amount equal to the amount of the deduction claimed under this sub- section is debited to the profit and loss account of the previous year in respect of which the deduction is to be allowed and credited to a reserve account to be utilised for the purposes of the business of the assessee. 1. Substituted for whole of the income by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. 2. Substituted for total profits of the export business of the assessee the same proportion as the amount of export turnover specified in the said certificate bears to the total export turnover of the assessee by the Finance Act, 1992, w. e. f. 1- 4- 1992. by the assessee from the export of trading goods, the same proportion as the amount of export turnover specified in the said certificate bears to the total export turnover of the assessee in respect of such trading goods.
1A Where the assessee, being a supporting manufacturer, has during the previous year, sold goods or merchandise to any Export House or Trading House in respect of which the Export House or Trading House has issued a certificate under the proviso to sub- section 1 , there shall, in accordance with and subject to the provisions of this section, be allowed in computing the total income of the assessee, a deduction of the profits derived by the assessee from the sale of goods or merchandise to the Export House or Trading House in respect of which the certificate has been issued by the Export House or Trading House.
2 a This section applies to all goods or merchandise, other than those specified in clause b , if the sale proceeds of such goods or merchandise exported out of India are received in, or brought into, India by the assessee other than the supporting manufacturer in convertible foreign exchange within a period of six months from the end of the previous year or, where the Chief Commissioner or Commissioner is satisfied for reasons to be recorded in writing that the assessee is, for reasons beyond his control, unable to do so within the said period of six months, within such further period as the Chief Commissioner or Commissioner may allow in this behalf. b This section does not apply to the following goods or merchandise, namely- i mineral oil and ii minerals and ores other than processed minerals and ores specified in the Twelfth Schedule . Explanation 1-The sale proceeds referred to in clause a shall be deemed to have been received in India where such sale proceeds are credited to a separate account maintained for the purpose by the assessee with any bank outside India with the approval of the Reserve Bank of India. Explanation 2.-- For the removal of doubts, it is hereby declared that where any goods or merchandise are transferred by an assessee to a branch, office, warehouse or any other establishment of the assessee situate outside India and such goods or merchandise are sold from such branch, office, warehouse or establishment, then, such transfer shall be deemed to be export out of India of such goods and merchandise and the value of such goods or merchandise declared in the shipping bill or bill of export as referred to in sub- section 1 of section 50 of the Customs Act, 1962 52 of 1962 , shall, for the purposes of this section, be deemed to be the sale proceeds thereof. 1. Substituted for whole of the income by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. 2. Substituted by receivable by the Finance Act, 1990, w. e. f. 1- 4- 3 Inserted, ibid, w. r. e. f. 1- 4- 1989 . 4 Inserted, ibid, w. e. f. 1- 4- 1991 5 Inserted by the Finance No. 2 Act, 1991 , w. e. f. 1- 4- 1991 6 Inserted by the Finance No. 2 Act, 1991 , w. e. f. 1- 4- 1992 .
This section does not apply to the following goods or merchandise, namely- i mineral oil and ii minerals and ores other than processed minerals and ores specified in the Twelfth Schedule . Explanation 1-The sale proceeds referred to in clause a shall be deemed to have been received in India where such sale proceeds are credited to a separate account maintained for the purpose by the assessee with any bank outside India with the approval of the Reserve Bank of India. Explanation 2.-- For the removal of doubts, it is hereby declared that where any goods or merchandise are transferred by an assessee to a branch, office, warehouse or any other establishment of the assessee situate outside India and such goods or merchandise are sold from such branch, office, warehouse or establishment, then, such transfer shall be deemed to be export out of India of such goods and merchandise and the value of such goods or merchandise declared in the shipping bill or bill of export as referred to in sub- section 1 of section 50 of the Customs Act, 1962 52 of 1962 , shall, for the purposes of this section, be deemed to be the sale proceeds thereof. 1. Substituted for whole of the income by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. 2. Substituted by receivable by the Finance Act, 1990, w. e. f. 1- 4- 3 Inserted, ibid, w. r. e. f. 1- 4- 1989 . 4 Inserted, ibid, w. e. f. 1- 4- 1991 5 Inserted by the Finance No. 2 Act, 1991 , w. e. f. 1- 4- 1991 6 Inserted by the Finance No. 2 Act, 1991 , w. e. f. 1- 4- 1992 .
mineral oil and
minerals and ores other than processed minerals and ores specified in the Twelfth Schedule . Explanation 1-The sale proceeds referred to in clause a shall be deemed to have been received in India where such sale proceeds are credited to a separate account maintained for the purpose by the assessee with any bank outside India with the approval of the Reserve Bank of India. Explanation 2.-- For the removal of doubts, it is hereby declared that where any goods or merchandise are transferred by an assessee to a branch, office, warehouse or any other establishment of the assessee situate outside India and such goods or merchandise are sold from such branch, office, warehouse or establishment, then, such transfer shall be deemed to be export out of India of such goods and merchandise and the value of such goods or merchandise declared in the shipping bill or bill of export as referred to in sub- section 1 of section 50 of the Customs Act, 1962 52 of 1962 , shall, for the purposes of this section, be deemed to be the sale proceeds thereof. 1. Substituted for whole of the income by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. 2. Substituted by receivable by the Finance Act, 1990, w. e. f. 1- 4- 3 Inserted, ibid, w. r. e. f. 1- 4- 1989 . 4 Inserted, ibid, w. e. f. 1- 4- 1991 5 Inserted by the Finance No. 2 Act, 1991 , w. e. f. 1- 4- 1991 6 Inserted by the Finance No. 2 Act, 1991 , w. e. f. 1- 4- 1992 .
For the purposes of sub- section 1 ,- a where the export out of India is of goods or merchandise manufactured or processed by the assessee, the profits derived from such export shall be the amount which bears to the profits of the business, the same proportion as the export turnover in respect of such goods bears to the total turnover of the business carried on by the assessee b where the export out of India is of trading goods, the profits derived from such export shall be the export turnover in respect of such trading goods as reduced by the direct costs and indirect costs attributable to such export c where the export out of India is of goods or merchandise manufactured or processed by the assessee and of trading goods, the profits derived from such export shall,- i in respect of the goods or merchandise manufactured or processed by the assessee, be the amount which bears to the adjusted profits of the business, the same proportion as the adjusted export turnover in respect of such goods bears to the adjusted total turnover of the business carried on by the assessee and ii in respect of trading goods, be the export turnover in respect of such trading goods as reduced by the direct and indirect costs attributable to export of such trading goods Provided that the profits computed under clause a or clause b or clause c of this sub- section shall be further increased by the amount which bears to ninety per cent of any sum referred to in clause iiia not being profits on sale of a licence acquired from any other person , and clauses iiib and 1. Substituted by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1992. Prior to the substitution, sub- section 3 read as under 3 For the purposes of sub- section 1 , profits derived from the export of goods or merchandise out of India shall be the amount which bears to the profits of the business as computed under the head Profits and gains of business or profession , the same proportion as the export turnover bears to the total turnover of the business carried on by the assesses. Earlier, it was substituted for the following by the Finance Act, 1990, w. e. f. 1- 4- 1991 3 For the purposes of sub- section 1 , profits derived from the export of goods or merchandise out of India shall be,- a in a case where the business carried on by the assessee consists exclusively of the export out of India of the goods or merchandise to which this section applies, the profits of the business as computed under the head Profits and gains of business or profession b in a case where the business carried on by the assessee does not consist exclusively of the export out of India of the goods or merchandise to which this section applies, the amount which bears to the profits of the business as computed under the head Profits and gains of business or profession the same proportion as the export turnover bears to the total turnover of the business carried on by the assessee. 2. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1992. 3. Ibid. 4. Ibid. iiic , of section 28, the same proportion as the export turnover bears to the total turnover of the business carried on by the assessee. Explanation.- For the purposes of this sub- section,- a adjusted export turnover means the export turnover as reduced by the export turnover in respect of trading goods b adjusted profits of the business means the profits of the business as reduced by the profits derived from the business of export out of India of trading goods as computed in the manner provided in clause b of sub- section 3 c adjusted total turnover means the total turnover of the business as reduced by the export turnover in respect of trading goods d direct costs means costs directly attributable to the trading goods exported out of India including the purchase price of such goods e indirect costs means costs, not being direct costs, allocated in the ratio of the export turnover in respect of trading goods to the total turnover f trading goods means goods which are not manufactured or processed by the assessee.
a where the export out of India is of goods or merchandise manufactured or processed by the assessee, the profits derived from such export shall be the amount which bears to the profits of the business, the same proportion as the export turnover in respect of such goods bears to the total turnover of the business carried on by the assessee
b where the export out of India is of trading goods, the profits derived from such export shall be the export turnover in respect of such trading goods as reduced by the direct costs and indirect costs attributable to such export
c where the export out of India is of goods or merchandise manufactured or processed by the assessee and of trading goods, the profits derived from such export shall,- i in respect of the goods or merchandise manufactured or processed by the assessee, be the amount which bears to the adjusted profits of the business, the same proportion as the adjusted export turnover in respect of such goods bears to the adjusted total turnover of the business carried on by the assessee and ii in respect of trading goods, be the export turnover in respect of such trading goods as reduced by the direct and indirect costs attributable to export of such trading goods Provided that the profits computed under clause a or clause b or clause c of this sub- section shall be further increased by the amount which bears to ninety per cent of any sum referred to in clause iiia not being profits on sale of a licence acquired from any other person , and clauses iiib and 1. Substituted by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1992. Prior to the substitution, sub- section 3 read as under 3 For the purposes of sub- section 1 , profits derived from the export of goods or merchandise out of India shall be the amount which bears to the profits of the business as computed under the head Profits and gains of business or profession , the same proportion as the export turnover bears to the total turnover of the business carried on by the assesses. Earlier, it was substituted for the following by the Finance Act, 1990, w. e. f. 1- 4- 1991 3 For the purposes of sub- section 1 , profits derived from the export of goods or merchandise out of India shall be,- a in a case where the business carried on by the assessee consists exclusively of the export out of India of the goods or merchandise to which this section applies, the profits of the business as computed under the head Profits and gains of business or profession b in a case where the business carried on by the assessee does not consist exclusively of the export out of India of the goods or merchandise to which this section applies, the amount which bears to the profits of the business as computed under the head Profits and gains of business or profession the same proportion as the export turnover bears to the total turnover of the business carried on by the assessee. 2. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1992. 3. Ibid. 4. Ibid.
in respect of the goods or merchandise manufactured or processed by the assessee, be the amount which bears to the adjusted profits of the business, the same proportion as the adjusted export turnover in respect of such goods bears to the adjusted total turnover of the business carried on by the assessee and
in respect of trading goods, be the export turnover in respect of such trading goods as reduced by the direct and indirect costs attributable to export of such trading goods Provided that the profits computed under clause a or clause b or clause c of this sub- section shall be further increased by the amount which bears to ninety per cent of any sum referred to in clause iiia not being profits on sale of a licence acquired from any other person , and clauses iiib and 1. Substituted by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1992. Prior to the substitution, sub- section 3 read as under 3 For the purposes of sub- section 1 , profits derived from the export of goods or merchandise out of India shall be the amount which bears to the profits of the business as computed under the head Profits and gains of business or profession , the same proportion as the export turnover bears to the total turnover of the business carried on by the assesses. Earlier, it was substituted for the following by the Finance Act, 1990, w. e. f. 1- 4- 1991 3 For the purposes of sub- section 1 , profits derived from the export of goods or merchandise out of India shall be,- a in a case where the business carried on by the assessee consists exclusively of the export out of India of the goods or merchandise to which this section applies, the profits of the business as computed under the head Profits and gains of business or profession b in a case where the business carried on by the assessee does not consist exclusively of the export out of India of the goods or merchandise to which this section applies, the amount which bears to the profits of the business as computed under the head Profits and gains of business or profession the same proportion as the export turnover bears to the total turnover of the business carried on by the assessee. 2. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1992. 3. Ibid. 4. Ibid.
iiic , of section 28, the same proportion as the export turnover bears to the total turnover of the business carried on by the assessee. Explanation.- For the purposes of this sub- section,-
a adjusted export turnover means the export turnover as reduced by the export turnover in respect of trading goods
b adjusted profits of the business means the profits of the business as reduced by the profits derived from the business of export out of India of trading goods as computed in the manner provided in clause b of sub- section 3
c adjusted total turnover means the total turnover of the business as reduced by the export turnover in respect of trading goods
d direct costs means costs directly attributable to the trading goods exported out of India including the purchase price of such goods
e indirect costs means costs, not being direct costs, allocated in the ratio of the export turnover in respect of trading goods to the total turnover
f trading goods means goods which are not manufactured or processed by the assessee.
3A For the purposes of sub- section 1A , profits derived by a supporting manufacturer from the sale of goods or merchandise shall be,- a in a case where the business carried on by the supporting manufacturer consists exclusively of sale of goods or merchandise to one or more Export Houses or Trading Houses, the profits of the business b in a case where the business carried on by the supporting manufacturer does not consist exclusively of sale of goods or merchandise to one or more Export Houses or Trading Houses, the amount which bears to the profits of the business the same proportion as the turnover in respect of sale to the respective Export House or Trading House bears to the total turnover of the business carried on by the assessee.
a in a case where the business carried on by the supporting manufacturer consists exclusively of sale of goods or merchandise to one or more Export Houses or Trading Houses, the profits of the business
b in a case where the business carried on by the supporting manufacturer does not consist exclusively of sale of goods or merchandise to one or more Export Houses or Trading Houses, the amount which bears to the profits of the business the same proportion as the turnover in respect of sale to the respective Export House or Trading House bears to the total turnover of the business carried on by the assessee.
The deduction under sub- section 1 shall not be admissible unless the assessee furnishes in the prescribed form, 6 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 1. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1992. 2. Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1989. 3. The words as computed under the head Profits and gains of business or profession omitted by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1992. 4. The words as computed under the head Profits and gains of business or profession., omitted, ibid. 5. Inserted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986, w. e. f 1- 4- 1987. 6. See rule 18BBA 3 and Form No. 10CCAC. deduction has been correctly claimed in accordance with the provisions of this section.
4A The deduction under sub- section 1A shall not be admissible unless the supporting manufacturer furnishes in the prescribed form along with his return of income,- a 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 basis of the profits of the supporting manufacturer in respect of his sale of goods or merchandise to the Export House or Trading House and b a certificate from the Export House or Trading House containing such particulars as may be prescribed and verified in the manner prescribed that in respect of the export turnover mentioned in the certificate, the Export House or Trading House has not claimed the deduction under this section Provided that the certificate specified in clause b shall be duly certified by the auditor auditing the accounts of the Export House or Trading House under the provisions of this Act or under any other law. 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 Regulation Act, 1973 46 of 1973 , and any rules made thereunder aa export out of India shall not include any transaction by way of sale or other- wise, in a shop, emporium or any other establishment situate in India, not involving clearance at any customs station as defined in the Customs Act, 1962 7 52 of 1962 b export turnover means the sale proceeds , received in, or brought into, India by the assessee in convertible foreign exchange in accordance with clause a of sub- section 2 of any goods or merchandise to which this section applies and which are exported out of India, but does not include freight or insurance attributable to the transport of the goods or merchandise beyond the customs station as defined in the Customs Act, 1962 52 of 1962 1. Substituted for on the basis of the amount of export turnover by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1992. Earlier, the italicised words were substituted for net foreign exchange realisation as determined in accordance with the Import and Export Policy of the Government of India for the relevant period by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 2. Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1989. 4. Substituted for income by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. 6. Inserted by the Finance No. 2 Act, 1991, w. r. e. f. 1- 4- 1986. 8. Substituted for receivable by the Finance Act, 1990, w. e. f. 1- 4- 1991, 9. Inserted, ibid. ba total turnover, shall not include freight or insurance attributable to the transport of the goods or merchandise beyond the customs station as defined in the Customs Act, 1962 2 52 of 1962 Provided that in relation to any assessment year commencing on or after the 1st day of April, 1991 , the expression total turnover shall have effect as if it also excluded any sum referred to in clauses iiia , iiib and iiic of section 28 baa 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 sum referred to in clauses iiia , iiib and iiic of section 28 or of any receipts by way of brokerage, commission, interest, rent, charges or any other receipt of a similar nature included in such profits and 2 the profits of any branch, office, warehouse or any other establishment of the assessee situate outside India bb Omitted by the Finance No. 2 Act, 1991 , w. e. f. 1- 4- 1991 c Export House Certificate or Trading House Certificate means a valid Export House Certificate or Trading House Certificate,. as the case may be, issued by the Chief Controller of Imports and Exports, Government of India d supporting manufacturer means a person being an Indian company or a person other than a company resident in India, manufacturing including processing goods or merchandise and selling such goods or merchandise to an Export House or a Trading House for the purposes of export. 1 Inserted by the Finance No. 2 Act, 1991 , w. r. e. f. 1- 4- 1987 . 3 Inserted by the Finance No. 2 Act, 1991 , w. e. f. 1- 4- 1992 . 4 Prior to the omission, clause bb , as inserted by the Finance Act, 1990 , w. e. f. 1- 4- 1991 , read as under bb total turnover shall not include any sum referred to in clauses iiia , iiib and iiic of section 28 5 Inserted as clause d by the Finance Act, 1988 , w. e. f. 1- 4- 1989 . 6 Relettered for d by the Direct Tax Laws Amendment Act, 1989 , w. e. f. 1- 4- 1989 . The original clause c , as inserted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986 , w. e. f. 1- 4- 1987 , and omitted by the Direct Tax Laws Amendment Act, 1989 , w. e. f. 1- 4- 1989 , read as under c net foreign exchange realisation means the total free on board value of exports out of India of goods and merchandise to which this section applies as reduced by the aggregate of the cost, insurance and freight value of all categories of import licences, to be issued by the Chief Controller of Imports and Exports, Government of India, to which the assessee is entitled during the previous year, either against export obligation or against exports as replenishments 7 Relettered for e , ibid. 8 Substituted for manufacturing goods by the Finance Act, 1990 , w. e. f. 1- 4- 1991 granite or other rocks that are cut and exported as raw blocks after being washed and cleaned. The entry in the Twelfth Schedule is very clear and unambiguous and uses the term cut and polished.
a 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 basis of the profits of the supporting manufacturer in respect of his sale of goods or merchandise to the Export House or Trading House and
b a certificate from the Export House or Trading House containing such particulars as may be prescribed and verified in the manner prescribed that in respect of the export turnover mentioned in the certificate, the Export House or Trading House has not claimed the deduction under this section Provided that the certificate specified in clause b shall be duly certified by the auditor auditing the accounts of the Export House or Trading House under the provisions of this Act or under any other law. 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 Regulation Act, 1973 46 of 1973 , and any rules made thereunder
aa export out of India shall not include any transaction by way of sale or other- wise, in a shop, emporium or any other establishment situate in India, not involving clearance at any customs station as defined in the Customs Act, 1962 7 52 of 1962
b export turnover means the sale proceeds , received in, or brought into, India by the assessee in convertible foreign exchange in accordance with clause a of sub- section 2 of any goods or merchandise to which this section applies and which are exported out of India, but does not include freight or insurance attributable to the transport of the goods or merchandise beyond the customs station as defined in the Customs Act, 1962 52 of 1962 1. Substituted for on the basis of the amount of export turnover by the Finance No. 2 Act, 1991, w. e. f. 1- 4- 1992. Earlier, the italicised words were substituted for net foreign exchange realisation as determined in accordance with the Import and Export Policy of the Government of India for the relevant period by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 2. Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1989. 4. Substituted for income by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. 6. Inserted by the Finance No. 2 Act, 1991, w. r. e. f. 1- 4- 1986. 8. Substituted for receivable by the Finance Act, 1990, w. e. f. 1- 4- 1991, 9. Inserted, ibid.
ba total turnover, shall not include freight or insurance attributable to the transport of the goods or merchandise beyond the customs station as defined in the Customs Act, 1962 2 52 of 1962 Provided that in relation to any assessment year commencing on or after the 1st day of April, 1991 , the expression total turnover shall have effect as if it also excluded any sum referred to in clauses iiia , iiib and iiic of section 28
baa 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 sum referred to in clauses iiia , iiib and iiic of section 28 or of any receipts by way of brokerage, commission, interest, rent, charges or any other receipt of a similar nature included in such profits and 2 the profits of any branch, office, warehouse or any other establishment of the assessee situate outside India
1 ninety per cent of any sum referred to in clauses iiia , iiib and iiic of section 28 or of any receipts by way of brokerage, commission, interest, rent, charges or any other receipt of a similar nature included in such profits and
2 the profits of any branch, office, warehouse or any other establishment of the assessee situate outside India
bb Omitted by the Finance No. 2 Act, 1991 , w. e. f. 1- 4- 1991 c Export House Certificate or Trading House Certificate means a valid Export House Certificate or Trading House Certificate,. as the case may be, issued by the Chief Controller of Imports and Exports, Government of India
d supporting manufacturer means a person being an Indian company or a person other than a company resident in India, manufacturing including processing goods or merchandise and selling such goods or merchandise to an Export House or a Trading House for the purposes of export. 1 Inserted by the Finance No. 2 Act, 1991 , w. r. e. f. 1- 4- 1987 . 3 Inserted by the Finance No. 2 Act, 1991 , w. e. f. 1- 4- 1992 . 4 Prior to the omission, clause bb , as inserted by the Finance Act, 1990 , w. e. f. 1- 4- 1991 , read as under bb total turnover shall not include any sum referred to in clauses iiia , iiib and iiic of section 28 5 Inserted as clause d by the Finance Act, 1988 , w. e. f. 1- 4- 1989 . 6 Relettered for d by the Direct Tax Laws Amendment Act, 1989 , w. e. f. 1- 4- 1989 . The original clause c , as inserted by the Taxation Laws Amendment and Miscellaneous Provisions Act, 1986 , w. e. f. 1- 4- 1987 , and omitted by the Direct Tax Laws Amendment Act, 1989 , w. e. f. 1- 4- 1989 , read as under c net foreign exchange realisation means the total free on board value of exports out of India of goods and merchandise to which this section applies as reduced by the aggregate of the cost, insurance and freight value of all categories of import licences, to be issued by the Chief Controller of Imports and Exports, Government of India, to which the assessee is entitled during the previous year, either against export obligation or against exports as replenishments 7 Relettered for e , ibid. 8 Substituted for manufacturing goods by the Finance Act, 1990 , w. e. f. 1- 4- 1991 granite or other rocks that are cut and exported as raw blocks after being washed and cleaned. The entry in the Twelfth Schedule is very clear and unambiguous and uses the term cut and polished.
granite or other rocks that are cut and exported as raw blocks after being washed and cleaned. The entry in the Twelfth Schedule is very clear and unambiguous and uses the term cut and polished.