Section 10AA(7) — the law in short
What the courts have decided on section 10AA(7), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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Statutory position — s.10AA: what "export turnover" excludes, and the six-month realisation condition in s.10AA(4A)
CBDT Circulars & InstructionsCuts both ways
The Assessing Officer has reduced my client's s.10AA export turnover by freight and insurance. What exactly does the definition exclude, and is there a time limit for bringing the money in?
Both the current definition of "export turnover" and the six-month realisation condition date from the Finance Act 2023 and apply from AY 2024-25. "Export turnover" in Explanation 1 to s.10AA is the consideration for export by the Unit of articles or things or services received in, or brought into, India in convertible foreign exchange in accordance with s.10AA(4A), and it excludes four things: freight, telecommunication charges and insurance attributable to the delivery of the articles or things outside India, and expenses incurred in foreign exchange in rendering services (including computer software) outside India. Separately and independently, from AY 2024-25 s.10AA(4A) makes the section apply to a Unit only if the sale or service proceeds are received in, or brought into, India in convertible foreign exchange within six months from the end of the previous year or such further period as the Reserve Bank of India (or the authority regulating foreign exchange) may allow.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.