Aarav Ltd. has two units - one unit located in a Special Economic Zone (SEZ) and the other unit in a Domestic Tariff Area (DTA). The SEZ unit was…
CA Intermediate · Taxation · MTP · September 2026
Aarav Ltd. has two units - one unit located in a Special Economic Zone (SEZ) and the other unit in a Domestic Tariff Area (DTA). The SEZ unit was set up and commenced manufacturing on 12.5.2017, whereas the DTA unit was set up and commenced manufacturing on 15.6.2019. The following details are available for the relevant year: Particulars SEZ Unit DTA Unit Export sales ₹3,50,00,000 ₹2,25,00,000 Net profit ₹ 95,00,000 ₹ 80,00,000 The total turnover of Aarav Ltd. is ₹ 12,50,00,000, while the turnover of its DTA unit is ₹ 4,50,00,000. Out of the export sales of the SEZ unit amounting to ₹ 3,50,00,000, an amount of ₹ 2,00,00,000 has been received in, or brought into, India in convertible foreign exchange by 30.9.2026. Based on the above information, Aarav Ltd. would be eligible for deduction under section 10AA for –
Suggested Answer and Working Notes:
Correct Answer: Option (C)
(c) ₹ 11,87,500
Topics: Paper 3B: Goods and Services Tax, Paper 3A: Income Tax Laws
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