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Rule 6AA of Income Tax Rules 1962: Prescribed activities for export markets development allowance

Rule 6AA - Prescribed activities for export markets development allowance

Prescribed activities for export markets development allowance.—For the purposes of sub-clause (ix) of clause (b) of sub-section (1) of section 35B, other activities for the promotion of the sale outside India of the goods, services or facilities which the assessee deals in or provides in the course of his business shall be as follows, namely :—

(a) conducting of pre-investment surveys or the preparation of feasibility studies or project reports :

Provided that the pre-investment surveys are conducted or the feasibility studies are made or the project reports are prepared on the request in writing made by the Central Government or a foreign party to whom such goods, services or facilities are likely to be sold or provided by the assessee ;

(b) maintenance outside India of a warehouse for the promotion of the sale outside India of such goods ;


(c) maintenance of a laboratory or other facilities for quality control or inspection of such goods :

Provided that in a case where only part of the sales is made outside India, the amount of expenditure incurred on the maintenance of such laboratory or other facilities which shall qualify for deduction under clause (a) of sub-section (1) of section 35B shall not exceed the amount which bears the same proportion as the value of the turnover in respect of such exports bears to the turnover of the business in respect of which the laboratory or other facilities are maintained ;

(d) purchase of foreign trade periodicals or journals related to the business of the assessee ;

(e) litigation outside India for the purposes of the protection of the business interests of the assessee or of trading activities relating to the goods, services or facilities which the assessee deals in or provides in the course of his business.’



Extra Notes for Readers:

- Rule 6AA was omitted by the Income Tax (Thirty Second Amendment) Rules, 1999, w.e.f. 19-11-1999.



Reference/Source: Check at Income Tax site for latest version of the Rules - link

This page was last updated on 17th October 2016.
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