SECTION 10A SUBSECTION 1-1A

having seen that it is necessary to have an export done and there must be profits or gains on such exports and the same shall be out of manufacturing goods and computer software, we shall she what are the conditions provided for,
1. the first proviso says where the business has been in exisistence prior to the arrival of this act then the deduction shall be for a period specified beginning from the year of commencement of production and not from the date on which approval is received.
2. the second proviso specifies that where a business has been situated in either ftz or epz layer on converted into sez then the same shall deduction not from the date of conversion but from the date of manufacturing commencement in such ftz or epz. but if the conversion takes place after 2005-06 then the provisions of section 10AA shall apply to the sez undertaking. prir to insertion of such a clause only section 10A provisions of sez shall apply. further stated that if this takes place prior to April 1 2003 then only 90% of such pgbp from exports shall be available for exemption.
3. the next proviso talks about the winding up of the deductions availed by this exemption section, it states that no deduction shall be availed by any enterprise for the assessment year beginning from 2011 April. thus this section is nearing its scrapping off period.subsection 1A:this subsection talks about the deductions available to sez for commencement of production after 1.4.2003.
the same shall be eligible for 100% deduction of profits and gains from business and profession for the first 5 years from the year in whic the firm begins to manufacture the said items. for the next 2 years the deduction shall be 50% of such pgbp. for the next three years so much amount of profits equivalent to 50% of total income from pgbp shall be debited to p&l a/c and the deduction shall be allowed and credited to a reserve a/c namely sez reinvestment allowance reserve a/c to be utilized as per subsection 1B of this section.it is provided that if 139(1) is not complied with no exemption shall be availed which means 139(4) belated return shall cancel this exemptioni would like to continue with subsection 1B in my next version.
once again a thanks to all who made me do it.shambo mahadeva.