deduction u/s 80-ia
sudarshan jain
(Querist) 23 June 2010
This query is : Resolved
IS DEDUCTION U/S 80-IA ALLOWED TO CONTAINER FREIGHT STATION (CFS)
Adv.Aiyer VLV
(Expert) 23 June 2010
It does not come with the definition of covered enterprises
also the following case law concurs
http://www.taxindiaonline.com/RC2/print_story.php?&newsid=8821
"Explanation.-For the purposes of this clause, "infrastructure facility" means,-
(a) a road including toll road, a bridge or a rail system;
(b) a highway project including housing or other activities being an integral part of the highway project; and
(c) a water supply project, water treatment system, irrigation project, sanitation and sewerage system or solid waste management system;
(d) a port, airport, inland waterway or inland port;
(ii) any undertaking which has started or starts providing telecommunication services whether basic or cellular, including radio paging, domestic satellite service, network of trunking, broadband network and internet services on or after the 1st day of April, 1995, but on or before the 31st day of March, 2003;
(iii) any undertaking which develops, develops and operates or maintains and operates an industrial park or special economic zone notified by the Central Government in accordance with the scheme framed and notified by that Government for the period beginning on the 1st day of April, 1997 and ending on the 31st day of March, 2006:
Provided that in a case where an undertaking develops an industrial park on or after the 1st day of April, 1999 and transfers the operation and maintenance of such industrial park to another undertaking (hereafter in this section referred to as the transferee undertaking) the deduction under sub-section (1), shall be allowed to such transferee undertaking for the remaining period in the ten consecutive assessment years in a manner as if the operation and maintenance were not so transferred to the transferee undertaking;
(iv) an undertaking which,-
(a) is set up in any part of India for the generation or generation and distribution of power if it begins to generate power at any time during the period beginning on the 1st day of April, 1993 and ending on the 31st day of March, 2006;
(b) starts transmission or distribution by laying a network of new transmission or distribution lines at any time during the period beginning on the 1st day of April, 1999 and ending on the 31st day of March, 2006:
Provided that the deduction under this section to an undertaking under sub-clause (b) shall be allowed only in relation to the profits derived from laying of such network of new lines for transmission or distribution."
Vineet
(Expert) 24 June 2010
Agree with Prof VLV. A Container Freight Station does not fall under any of the activities or projects which entitle the undertaking for exemption u/s 80IA.
