The Income Tax department has allowed profit-linked tax deductions to new special economic zone (SEZ) units upon transfer of technical manpower from the existing 20 per cent to 50 per cent from an existing unit. This will provide some tax relief to software and IT-enabled services (ITeS) companies operating from such units.
Statement by NASSCOM:-
NASSCOM welcomes the clarifications from the CBDT to increase the transfer or re-deployment limit of technical manpower from the existing 20 per cent to 50 per cent, to a new unit. The circular allows the flexibility to account for the total manpower at the enterprise as-well-as unit level, which is a great step to ease the technicalities involved in the process. The decision to not apply the ruling to cases which have completed assessment is also a great help to the industry. This is a great step forward by the Government and we are hopeful that other such matters which have been long up for discussion are taken up and worked towards achieving swift closures
Statement by NASSCOM:-
NASSCOM welcomes the clarifications from the CBDT to increase the transfer or re-deployment limit of technical manpower from the existing 20 per cent to 50 per cent, to a new unit. The circular allows the flexibility to account for the total manpower at the enterprise as-well-as unit level, which is a great step to ease the technicalities involved in the process. The decision to not apply the ruling to cases which have completed assessment is also a great help to the industry. This is a great step forward by the Government and we are hopeful that other such matters which have been long up for discussion are taken up and worked towards achieving swift closures
