According to a circular released by the Central Board of Direct Taxes (CBDT) to all Income Tax offices in the country, it has instructed the Income Tax department to permit export oriented units (EOU), approved by Development Commissioners in the respective states, to claim tax exemption.
The approval from the Development Commissioner, adds the communiqué will have to be further ratified by the Board of Approvals, which is constituted by officials from different ministries like commerce, finance, etc. An EOU is considered a 100 percent export unit and is eligible for a multitude of tax benefits.
In earlier days, the Income Tax department was denying the tax benefits to EOUs approved by the Development Commissioner, which was opposed by the trade bodies and in turn the issue was raised by the Ministry of Commerce and Industry with the revenue department in the Ministry of Finance.
Fibre2fashion News Desk - India
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