Income Tax Act, 2025
Section 7: Ins. by Act 27 of 1999,s. 46 (w.e.f. 11992).
7. Ins. by Act 27 of 1999,s. 46 (w.e.f. 11992).
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(b) who owns any undertaking which manufactures or produces goods or merchandise anywhere
in India (outside any special economic zone) and sells the same to any undertaking situated in a
special economic zone which is eligible for deduction under section 10A and such sale shall be
deemed to be export out of India for the purposes of this section.]
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 1[the Foreign
Exchange Management Act, 1999 (42 of 1999)], and any rules made thereunder;
2[(aa) “export out of India” shall not include any transaction by way of sale or otherwise, 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 (52 of 1962);]
(b) “export turnover” means the sale proceeds 3[received in, or brought into, India] by the
assessee in convertible foreign exchange 4[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);]
5[(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 (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) 6[, (iiic), (iiid) and (iiie)] of section 28;]
7[(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)5[, (iiic), (iiid) and (iiie)]
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 theassessee
situate outside India;
8* * * * *
9[10[(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;
11[(d)] “supporting manufacturer” means a person being an Indian company or a person (other
than a company) resident in India, 12[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;
13[(e) “special economic zone” shall have the meaning assigned to it in clause (viii) of
the Explanation 2 to section 10A.]
1. Subs. by Act 17 of 2013, s. 4, for “the Foreign Exchange Regulation Act, 1973 (46 of 1973)” (w.e.f. 12013).
who owns any undertaking which manufactures or produces goods or merchandise anywhere
in India (outside any special economic zone) and sells the same to any undertaking situated in a
special economic zone which is eligible for deduction under section 10A and such sale shall be
deemed to be export out of India for the purposes of this section.]
Explanation.—For the purposes of this section,—
“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 1[the Foreign
Exchange Management Act, 1999 (42 of 1999)], and any rules made thereunder;
2[
“export out of India” shall not include any transaction by way of sale or otherwise, 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 (52 of 1962);]
“export turnover” means the sale proceeds 3[received in, or brought into, India] by the
assessee in convertible foreign exchange 4[in accordance with clause
of sub-section
“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 (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
6[,
and
“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—
ninety per cent. of any sum referred to in clauses
and
the profits of any branch, office, warehouse or any other establishment of theassessee
situate outside India;
8* * * * *
9[10[
“special economic zone” shall have the meaning assigned to it in clause
of
the Explanation 2 to section 10A.]
1. Subs. by Act 17 of 2013, s. 4, for “the Foreign Exchange Regulation Act, 1973 (46 of 1973)” (w.e.f. 12013).