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No TDS on payment to Non resident Consultant!

November 30, 2006 By taxworry 5 Comments

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Excerpt: Someone Asked on This blogIs TDS applicable to foreign consultant who renders service outside India (namely in USA). Foreign consultant is US based and does not have PE in India. From: sundar.prakash@hotmail.comNote : On account of an Explanation given under section 9 with effect from 1/6.1976 by Finanance Act 2007 , the answer is valid only if the payments do not fall under the definition of royalty and technical fees defined under sub section vi & vii of section 9 of the I T Act.Read this posting along with this one for proper understnding.In my view , TDS is not…

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Filed Under: A of Your Question, TDS, non-resident Tagged With:

Agents of Non Resident exempt from obligation to file Returns electronically

November 30, 2006 By taxworry Leave a Comment

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Excerpt: The CBDT issued circular no 12/2006, Dated 27-11-2006 that for Agents of Non Resident , filing Return electronically is not mandatory . The relevant portion of circular is give below”2. It has been brought to the notice of the Board that the agents of non-residents, within the meaning of section 160(1)(a) of the Income-tax Act, are facing difficulties in electronically furnishing the returns of non-residents. This is because of the reason that there may be more than one agent for a non-resident in India for different transactions or a person in India may be an agent of more than one…

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Filed Under: A NEWS u can USE, Filing of Return

Confused over 194C and 194 I ?

November 27, 2006 By taxworry Leave a Comment

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Excerpt: Someone Asked on This blogWe have given contract for shifting of material in plant from one place to another by Loaders,Trucks, Dozzers,Dumpers, Tipller etc on rate contract basis i.e either Rs/per hour, Rs/per trip , or Rs./ per ton of material.The main condition in the contract are s follows1) It is clearly written in the contract that the party would deploy so & so numbers of equipment for a particular work.2) Also in some cases we are providing the diesel to the party i.e rate is excluding diesel.3) Their is a penalty clause for non availability of the equipment in…

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Filed Under: A of Your Question, TDS Tagged With:

Stipend may or may not be tax free.

November 27, 2006 By taxworry Leave a Comment

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Excerpt: Whether the stipend paid to trainee is taxable if taxable under which section or head of income… If exempted, section please… ….From: ramprasad_mba@…..com Stipend may be taxable or may not be taxable based on the fact of the case.First visit the scope of total income which is defined in section 5 of the Act. It says “5. (1) Subject to the provisions of this Act, the total income…

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Filed Under: A of Your Question, Exemption Tagged With:

Salary in Cash over Rs 20000 falls under Section 40A[3].

November 27, 2006 By taxworry Leave a Comment

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Excerpt: If a person is receiving a salary of around Rs 20,000 per month can he be paid in cash ? His TDS etc will be deducted as per the existing norms and will his employer face any problems if the person is paid fornightly, after the requisite TDS deductions, in Cash ? From: ………………kuttimukund@…..comSection 40[A][3] of the I T Act which make it mandatory to make payment in case of business expendiure above Rs 20000 in cash , is also applicable on Salary. Thus ,if the payment is made above Rs 20000 ,…

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Even Autonomous bodies of States are subject to TDS!

November 25, 2006 By taxworry Leave a Comment

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Excerpt: Advanced TopicIs Panchayat Udyog exempt from Income Tax, if yes on what grounds, If there is any section/direction/ notification, kindly give detail, TDS has been deducted wrongly by some dept. on furniture supplied by Panchayat Udyog which I think is exempt on mutual benefit concept. Total Turnover of P/U for the f/y 2005-2006 is 56.00 lacs.Now if P/U is exempt from income tax would it be possible to file return to claim refund of tds with out Tax Audit. …………vyakatitivemittal@ … in I had a similar query whether municipal corporation is liable to tax? what if we have to deduct…

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Filed Under: A of Your Question, TDS Tagged With:

Enjoy The Gift! Gift Tax Act Is Dead Long Ago.

November 23, 2006 By taxworry Leave a Comment

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Excerpt: Does there arise a gift tax for A.Y-92-93,in respect of a quoted shares alloted to a major shareholder of a Ltd company ‘X’, by way of a family partition (where such shareholder is the member of the family that controls the closely held limited company ‘X’ )? gspk@..mail.comGift Tax Act is abolished long ago. So no gift tax can be charged now. Even if during 1992-93 there was Gift Tax Act, there can not be any gift tax assessment on account of time limitation .The proceeding is barred now. If you are asking whether the Gift in…

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Filed Under: A of Your Question, Gift Tagged With:

TDS in Case of payments to Non Resdent Shipping Companies.

November 22, 2006 By taxworry 1 Comment

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Excerpt: Someone Asked on this BlogA company imported scrap from USA and paid shipping charges to shipping companies (Indian and also foreign) Whether tax on shipping charges is required to be deducted and if so at what rates. …

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Filed Under: A of Your Question, TDS Tagged With:

No TDS on distribution of assets on liquidation

November 21, 2006 By taxworry Leave a Comment

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Excerpt: Someone Asked On This blog A Pvt Ltd Company is under Liquidation and there is excess of assets over liabilities( due to accumulated Profits) which the liquidator wants to distribute among the shareholder. What are the implications with reference to Section 194 read with sec 2(22)(c) and also under sec 115-O Will both the sections apply since this dividend u/s 2(22)(c) is not in the normal course of business s_mirji@…..com If there is “accumulated profits”, to that extent the distribution of assets whether capitalised or not, shall be taken as Dividend but not subject to TDS since…

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Filed Under: A of Your Question, Company, capital gains Tagged With:

Don’t Worry.Be Happy!You arn’t Scrutinized.

November 20, 2006 By taxworry Leave a Comment

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Excerpt: Someone Asked on This blogFor the assessment year 2005-2006, IT dept. asked me to furnish the Form-16 again. When I inquired in detail I found out that they are are looking at source of income for buying a house (that I registered in 2005)?They have not come back asking any more documents. What I want to know is:1. For assessment year 2005-2006, till when the scrutiny can go on? Is there a time limit by which the scrutiny needs to end? 2. For the property purchased and registered in 2005, till what time can they ask me to furnish the…

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Filed Under: A of Your Question, Assessment Tagged With:
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