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(a) Commencing on or after the 1st day of April, 1981, in any free trade zone; or (b) Commencing on or after the 1st day of April, 1994, in any electronic hardware technology park or, as the case may be, software technology park;
2) Section 10 B
Special provision in respect of newly established 100% export oriented undertaking .
3) Section 10 C
Special provision in respect of certain industrial undertakings in north eastern region subject to the provisions of this section, any profits and gains derived by an assessee from an industrial undertaking, which has begun or begins to manufacture or produce any article or thing on or after the 1st day of April, 1998 in any Integrated Infrastructure Development Centre or Industrial Growth Centre located in the North-Eastern Region (hereafter in this section referred to as the industrial undertaking) shall not be included in the total income of the assessee.
plant or furniture, being tangible assets; (ii) Know-how, patents, copyrights, trade marks, licences, franchises or any other business or commercial rights of similar nature, being intangible assets acquired on or after the 1st day of April, 1998, owned, wholly or partly, by the assessee and used for the purposes of the business or profession, the following deductions shall be allowed - (i) In the case of assets of an undertaking engaged in generation or generation and distribution of power, such percentage on the actual cost thereof to the assessee as may be prescribed;
Section 35
(1) In respect of expenditure on scientific research, the following deductions shall be allowed - (i) Any expenditure (not being in the nature of capital expenditure) laid out or expended on scientific research related to the business.
Section 32(1)
Expenditure on acquisition of patent right or copyrights : Any expenditure ofa capital nature incurred by a small entrepreneurs on or after 1/4/98 will qualify for depreciation @25%
TAX Incentives for Exports y The term "export turnover" under the existing provisions, means the sale proceeds (excluding freight and insurance) receivable by the assessee in convertible foreign exchange. In other words, the FOB value of exports.The Finance Act, 1990 has restricted the definition of the term "export turnover" to mean FOB sale proceeds actually received by the assessee in convertible foreign exchange within six months of the end of the previous year or within such further period as the Chief Commissioner/Commissioner may allow in this regard.
"Total turnover" was not defined earlier. There has been lack of uniformity amongst the assessing authorities and many assessing authorities are treating export incentives to be a part of the total turnover. The Finance Act, 1990, has, therefore, clarified the position by inserting a definition for the term "total turnover" in the explanation below section 80HHC. According to this definition, "total turnover" shall exclude cash compensatory support, duty drawback and profit on sale of import entitlement licences.
Incentives for
Handicapped NRIs Retired defence personnel Women Entrepreneurs Exemptions from: Income tax Property tax Stamp duty Sales tax
Sickness Definition : The definition of sickness in SME sector has been changing over time. The Third Census on SSI Sector Kohli Committee: "A small scale industrial unit is considered as sick when if any of the borrowal accounts of the unit remains substandard for more than six months, i.e., principal or interest, in respect of any of its borrowal accounts has remained overdue for a period exceeding 6 months OR There is erosion in the net worth due to accumulated losses to the extent of 50 per cent of its net worth during the previous accounting year, and The unit has been in commercial production for at least two years."
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Internal
1. 2. 3. 4. 5.
External
Anatomical causes Underestimation of Project cost Old Technology Wrong Site Unwanted investment in Fixed assets Defective Plant & Machinery Operational causes Defective Financial planning No R&D planning Incapable Management
Shortage of supply in inputs Rise in raw material cost Radical change in govt. policy Recession in Industry Foreign exchange fluctuations
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Discover new Products & Markets Enhance accessibility to market Information More thrust on R & D More Professionalism Planned training Modernising Operation More attention to Marketing Frequent use of advertisement Efforts to collect dues from buyers
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