TAX & COMPLIANCE
Tax benefits
INCENTIVES AVAILABLE UNDER CUSTOMS:
- • Having been efficient compliance consultants we help IT industries from dealing with exemptions from paying import duty on import of capital goods by taking STPI registration and duly complying with the STPI compliances.
INDUSTRY SPECIFIC INCENTIVES UNDER GST:
- • The IT industries can apply for letter of undertaking under GST and can exempt itself from paying GST on export services provided by the company.
- • To promote the export of goods and services GST department has given option of applying GST refund of Input Tax Credit availed against services used for export supplies.
INCENTIVES AVAILABLE UNDER INCOME TAX ACT
| Section 80-IAC | Section 54EE | |
|---|---|---|
| Eligibility | Start-up companies & LLPs | Any Assessee including Start-up Companies |
| Nature of deduction | 100% tax rebate on profit of 3 years out of a block of 10 years. | Exemption against long term capital gain arising out of transferring capital asset |
| Tax holiday | Profit for 3 years out of a block of 10 years will be exempted from paying tax. | Amount of investment made in the notified fund will be allowed as a deduction against long term capital gain. |
| Conditions for Eligible Deduction |
- The entity should be a company or an LLP - It should be incorporated after 01.04.2016 but before 01.04.2021. - The turnover of the entity should be less than Rs 100 crores. - The start-up should have been recognized under DPIIT (Department for promotion of Industry and Internal Trade) |
- Part of the amount of capital gain shall be invested in a fund notified by central government. - The maximum amount of investment allowed is Rs 50 lakhs. - The amount invested shall be locked in for at least 3 years. |
GST Refund
As tax consultants GST Refund plays a crucial role for the companies which are exports oriented technology companies, as most of their Input Tax Credit gets accumulated, as it helps in meeting the working capital requirements of the company. We provide our services for:
STPI Compliances & Benefits
STPI (software technology park of India) is the designated authority to certify the export of IT and ITES services through data communication links. Followings are some benefits available under such scheme: -
- 1. 100% Foreign Equity is permitted.
- 2. All the imports of Hardware & Software in the STP units are completely duty free, import of second-hand capital goods also permitted.
- 3. Re-Export of capital goods is also permitted.
Non STPI Compliances & Benefits
Companies have to take registration as Non-STPI unit for getting the Softex certified. Certifying Softex is mandatory for the companies who are into development of Export oriented computer software and IT Enabled Services.
Non-STPI units have the benefit of setting up the unit anywhere in India. Following are the compliances applicable to non-STPI units:
- 1. Softex.
- 2. Monthly Performance Report
- 3. Annual Performance Report