Financial Daily from THE HINDU group of publications
Wednesday, Dec 21, 2005
Financial Daily from THE HINDU group of publications Wednesday, Dec 21, 2005 |
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Infrastructure Industry & Economy - Taxation Port-related infrastructure: CBDT eases norms for getting tax breaks K.R. Srivats
New Delhi , Dec. 20 AVAILING oneself of tax breaks for creation of structures at the ports for storing, loading and unloading just got simpler. The Central Board of Direct Taxes has relaxed the conditions that have to be met for such structures to form part of the definition of "ports" and thereby become entitled for the tax-breaks available for developing, operating or maintaining infrastructure facilities such as ports. The Revenue Department has said that a certificate from the port authority concerned that the structures form part of the port would suffice for counting them as part of "ports" for the purpose of Section 10(23G) and Section 80-IA of the Income-Tax Act. This stance of the Revenue Department would be applicable for and from assessment year 2002-03 onwards. For 2001-02 and earlier assessment years, two conditions had to be met for the structures to form part of the definition of ports. Besides a certificate from the port authority concerned, there was also the requirement that such structures should have been built under the BOT (build, operate and transfer) or BOLT (build-own-operate-transfer) scheme and there is an agreement that they would be transferred to the port authority on the expiry of the time stipulated in the agreement. "Now, from assessment year 2002-03, there will only be one condition and that is the need for a certificate," official sources said. Section 10(23G) of the Income-Tax Act exempts income by way of dividend, interest and long-term capital gains arising out of investments made in an enterprise engaged in the business of developing, maintaining and operating an infrastructure facility. The exemption is available so long as certain conditions are fulfilled. Under Section 80-IA, deduction is available to an enterprise involved in developing, maintaining and operating any infrastructure so long as certain conditions are fulfilled.
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