following example will clarify the position (figures
assumed):
Rs.
Rs.
FOB value of trading goods
6,50,000
Export incentives
80,000
}
Miscellaneous income ... Assessees working of deduction under section 80HHC :
Rs.
Rs.
FOB value of exports
6,50,000
Less: Direct costs
5,00,000
Proportionate indirect
DEPB), an exporter may
supply for credit, as a specified percentage of FOB value of
exports, made in freely convertible currency. The credit shall ... provisions of
paragraphs 7.2 shall be applicable for DEPB also. The FOB value in
free foreign exchange shall be converted into Indian rupees
permitted to sell rejects as
well as goods upto 50% of the FOB Value of exports subject to
payment of duty and fulfillment of minimum ... other than gems and jewellery units, may sell goods upto
50% of FOB value of exports subject to fulfillment of positive
NFE on payment
receivable by the assessee in convertible foreign
exchange. In other words, the FOB value of exports. The Finance
Act, 1990 has restricted the definition ... term "export
turnover" to mean FOB sale proceeds actually received by the
assessee in convertible foreign exchange within six months
product. Under DEPB, an exporter may apply
for credit as percentage of FOB value of exports made in freely convertible
currency. Credit is available only
Finance Act, 1992 ,
restricted the term "export turnover" to FOB sale
proceeds. However, the said Act excluded CCS, Duty
Drawback and profit
result, in CIF transactions, while the export turnover was taken as FOB value, the total turnover
included sale proceeds of exports at CIF value. With
para 9.9 (b) refers to DTA sales up to 50% of the FOB value of
exports. In our view, the Tribunal had erred in relying
business
profits
: Rs.16.05 crores
Total turnover
: Rs.52.20 crores
FOB Value of Export Sales
: Rs.64.08 lakhs
Thus, Deduction under Section ... income
: Rs.6.42 crores (Approx.)
Total turnover
: Rs.52.20 crores
FOB Value of Export Sales
: Rs.64.08 lakhs
Thus, Deduction = 64.08 lakhs
lakhs clips
bolts for a total value of US$.6,15,200, FOB Calcutta. Under
the said contract 20% of the total value
