What is 80HHC?
Section – 80HHC : Deduction in respect of profits retained for export business.
Is export income tax free in India?
2) Act, 1962 provides for a tax concession in the case of profits derived from the export of goods or merchandise out of India. This tax concession will be admissible in the case of all assessees except companies which have not made the prescribed arrangements for the declaration and payment of dividends within India.
What is total turnover and export turnover?
(b) “export turnover” means the sale proceeds of any goods or merchandise 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).
Is GST compulsory for export?
GST on Exports: How Will It Be Levied? The export of goods or services is considered as a zero-rated supply. GST will not be levied on export of any kind of goods or services. A duty drawback was provided under the previous laws for the tax paid on inputs for the export of exempted goods.
Which tax is exempted for export?
No sales tax is involved under export sales. If you source out any materials from a third party seller for your export purpose, the said supplier is exempted from sales tax as the materials he supplies to you is for ‘export purpose’.
What is turnover limit for GST?
Rs.20 lakh
Persons providing services need to register if their aggregate turnover exceeds Rs. 20 lakh (for normal category states) and Rs. 10 lakh (for special category states).
Is GST included in turnover?
Aggregate turnover in GST can be described as the taxable value of supplies of goods and services, exempt supplies of goods and services, the export of goods and services and inter-state supplies. Hence, accumulated turnover for GST includes supplies of goods or services, supplies exempt from GST and exports.
Can export invoice be raised in INR?
As per the RBI Master Directions (RBI/FED/2015-16/11), there is no restriction on export invoices to contain foreign currency only. They may be presented in INR as well. The invoices may be presented in either freely convertible currency or Indian Rupees.
Can we export without GST?
What is export under Lut?
The full form of LUT is Letter of Undertaking. It is a document that exporters can file to export goods or services without having to pay taxes. Under the new GST regime, all exports are subject to IGST, which can later be reclaimed via a refund against the tax paid.
What if my turnover is less than 20 lakhs?
The traders, who have turnover below Rs 20 lakh and supply goods and services within the state, can also go for voluntary registration to avail input tax credit. “But once registered, the traders will have to pay taxes on all supplies, even if turnover is less than Rs 20 lakh,” Adhia said.
Can we export without Lut?
If you don’t meet the conditions for an LUT, you can still export without paying IGST – by furnishing a bond on non-judicial stamp paper. The bond must cover the tax liability on the export as assessed by you (the exporter). If it falls short, you can furnish a fresh bond to cover the additional liability.
Can export be done without Lut?
An exporter furnishing LUT’s is required to furnish fresh LUT for each financial year. If the conditions mentioned in LUT are not satisfied within the time-limit, the privileges are revoked and the exporter will have to furnish bonds.
Is LUT required for export of services?
Why LUT is required?
An LUT is required to be filed on the letterhead of the registered person who intends to supply goods/services without the payment of integrated tax. The LUT must be duly applied for in the prescribed GST RFD-11 form. It can be filed by the MD, company secretary, or other authorized people.
Is GST required for turnover less than 20 lakhs?
GST registration is not required for businesses whose turnover does not exceed 20 lakhs annually. 2. You cannot apply for GST cancellation except after a year from the date of registration.
What is section 80hhc(3)?
Section 80HHC (3) is the sub-section which provides how profits are to be worked out in computing total income. For purposes of such computation both profits and losses have to be taken into account.
What does the word ‘profit’ in section 80hhc(3) mean?
Section 80HHC (3) is the sub-section which provides how profits are to be worked out in computing total income. For purposes of such computation both profits and losses have to be taken into account. Thus, the word ‘profit’ in section 80HHC (3) will mean profits after taking into account losses, if any.
What is section 80-ab of Income Tax Act?
Section 80-AB makes it clear that the computation of income has to be in accordance with the provisions of the Act. If the income has to be computed in accordance with the provisions of the Act, then not only profits but also losses have to be taken into consideration.