• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Profit of the unit is calculated dividing export sale of the SEZ unit by the total turnover of the assessee.

New Delhi , Oct. 29

The Associated Chamber of Commerce and Industry (Assocham) has drawn attention to an "inadvertent anomaly" on the taxability of profits of the special economic zone (SEZ) units having multiple locations.

In a memorandum to the Commerce Secretary, Mr G.K. Pillai, Assocham, said that profit of the SEZ unit is calculated dividing export sale of the SEZ unit by the total turnover of the assessee.

It said the total turnover of the assessee would include the turnover from other multi-located units of the company and in some cases the units located elsewhere which might have substantial domestic turnover.

Where the total turnover is taken as denominator, this would substantially reduce the deduction envisaged from the profits of the export turnover made by the SEZ unit.

This is all the more glaring where a company is having only one SEZ unit that would stand to gain by taking the denominator as the total sales of that SEZ unit only for calculating the exempted profit of the SEZ unit, it added. This would put companies with multiple units with one or more units located in an SEZ at a disadvantageous position compared to a company having only SEZ unit, the chamber said.

More Stories on : Taxation | Infrastructure | Industry Associations

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rain bath

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line