Company tax return for export-oriented companies in India
Company tax return for export-oriented companies in India
Company tax return for export-oriented companies in India
Export-oriented companies in India, just like any other company, are required to file their income tax returns annually. However, there are certain tax benefits and provisions available specifically for export-oriented companies to promote and incentivize exports. Here's what you need to know about the tax return filing for export-oriented companies in India:
1. Eligibility for Export-Oriented Units (EOUs):
Export-Oriented Units (EOUs) are industrial units established in India to produce goods for export purposes. These units are set up under the Export and Import (EXIM) Policy and are governed by the Ministry of Commerce and Industry.
2. Tax Benefits for EOUs:
EOUs enjoy various tax benefits to encourage exports, such as:
a. Income Tax Exemption: Profits derived from export activities are eligible for a deduction under Section 10A and Section 10AA of the Income Tax Act. Initially, Section 10A provided tax exemption to certain EOUs, while Section 10AA was introduced for units set up in Special Economic Zones (SEZs). However, from the assessment year 2020-2021 (financial year 2019-2020), Section 10AA has been withdrawn, and all EOUs are now covered under Section 10A.
b. Minimum Alternative Tax (MAT) Exemption: EOUs are exempt from the applicability of Minimum Alternative Tax (MAT).
c. Export Promotion Capital Goods (EPCG) Scheme: EOUs can avail the EPCG scheme, which allows them to import capital goods at a concessional customs duty rate to enhance export competitiveness.
3. Tax Return Filing for EOUs:
Export-oriented companies, including EOUs, are required to file their income tax returns annually in Form ITR-6. The due date for filing the tax return for EOUs is generally on or before the due date applicable to other companies, which is September 30th of the assessment year, for those required to get their accounts audited.
4. Compliance Requirements:
EOUs must comply with all the relevant tax laws, including the tax benefits mentioned above. They should maintain proper books of accounts, adhere to the tax audit requirements if applicable, and file their income tax returns accurately and within the specified due dates.
5. Documentation:
EOUs must maintain appropriate documentation to substantiate their export activities and to avail the tax benefits under Section 10A of the Income Tax Act.
To ensure proper compliance and avail the tax benefits, export-oriented companies, including EOUs, should seek guidance from qualified tax professionals or Chartered Accountants who are well-versed in the tax provisions applicable to export-oriented units in India.
In India, export-oriented companies are eligible for certain tax benefits and incentives. To file a company tax return for an export-oriented company in India, you would generally follow the standard procedures for filing a tax return, but with ...
India continues to be a global powerhouse when it comes to export of goods and export of services. Indian businesses who export goods and services are considered as a zero-rated supply under goods and services tax (GST) - no GST is levied on such ...
Tax Planning for Digital Businesses in Bangalore Introduction: In the digital age, Bangalore has emerged as the epicenter of India's technology revolution, earning the moniker "Silicon Valley of India." With a vibrant startup ecosystem, a robust IT ...
List of Top IT companies This article is about the list of Top IT companies in India [Indian IT companies] based on Total Sales. India is home to the biggest IT companies. According to the NASSCOM Report, IT export revenues from India grew by 8.3% to ...
Engaging in international trade offers Indian businesses a gateway to global markets and diversified revenue streams. However, entering the import-export business requires a clear understanding of the regulatory framework, documentation procedures, ...