DEDUCTION U/S 801A UNDERTAKING PROVIDING INFRASTRUCTURE FACILITY ·

·         DEDUCTION U/S 801A
UNDERTAKING PROVIDING INFRASTRUCTURE FACILITY

·         CORPORATE TAX PLANNING

·         MEANING OF INFRASTRUCTURE FACILITY

·         INFRASTRUCTURE FACILITY MEANS:-

1. A ROAD,INCLUDING TOLL ROAD,A BRIDGE OR A RAIL SYSTEM
2. A HIGH WAY PROJECT INCLUDING HOUSING OR OTHER ACTIVITIES BEING AN INTEGRAL PART OF THE HIGH WAY PROJECT
3. A WATER SUPPLY PROJECT, WATER TREATMENT SYSTEM,IRRIGATION PROJECT AND SEWERAGE SYSTEM OR SOLID WASTE MGMT SYSTEM
4. A PORT,AIRPORT,INLAND WATER WAY OR INLAND PORT OR NAVIGATIONAL CHANNEL

·         CATEGORY 1: PROVIDING INFRASTRUCTURE FACILITY

·         ELIGIBLE BUSINESS 80 IA(4)(i)

1. DEVELOPING
2. OPERATING AND MAINTAINING OR
3. DEVELOPING ,OPERATING AND MAINTAINING INFRASTRUCTURE FACILITY

·         FORM OF ORGANISATION:-

1. OWNED BY A COMPANY REGISTERED IN INDIA OR BY CONSORTIUM OF SUCH COMPANIES OR W.E.F 2006-2007 BY AN AUTHORITY CONSTITUTED UNDER STATE ACT/CENTRAL ACT
2. CAN NOT CLAIMED BY FOREIGN COMPANY OR OTHER NON CORPORATE ASSESSES

3.     NECESSITY OF AGREEMENT:- WITH CG/SG/STATUTORY BODY

·         SPECIFIC CONDITIONS

4.      

1. DEVELOPING
2. OPERATING AND MAINTAINING OR
3. DEVELOPING ,OPERATING AND MAINTAINING INFRASTRUCTURE FACILITY

4.     DEDUCTION SHALL BE ALLOWED @ 100% OF PROFITS AND GAINS DERIVED FROM SUCH ELIGIBLE BUSINESS

·         PERIOD OF DEDUCTION

·         TRANSFER OF BUSINESS

·         IN CASE THE UNDERTAKING WHICH IS CLAIMING THIS DEDUCTION TRANSFERS ITS BUSINESS ( INFRASTRUCTURE FACILITY) ON OR AFTER 1/4/99 TO ANOTHER ENTERPRISE FOR OPERATING AND MAINTAINING INFRASTRUCTURE FACILITY THE DEDUCTION WILL BE AVAILABLE TO THE TRANSFEREE COMPANY FOR UN EXPIRED PERIOD. PROVIDED THEY MAINTAIN THE INFRASTRUCTURE FACILITY IN ACCORDANCE WITH THE AGREEMENT WITH THE STATE/LOCAL/LOCAL AUTHORITY ETC