Do you have streak of writing column ? Why don't you share your expertise and knowledge for readers and let them have the benefit of your knowledge. Click the page "Guest Blogging " show the world your talent. - taxworry.com answers QUERIES done through ASK ME link only. Question by comment system is OPEN to READERS .
You are here: Home / Archives for December 2007

Who Is To Tax If A Non Resident Sells Indian Company’s Shares To Another Non Resident ?

December 31, 2007 By taxworry Leave a Comment

Archived; click post to view.
Excerpt: Who will be liable to tax if a non resident sells shares of Indian company to another non resident and all dealing including payments are facilitated outside India ? The general perception is that since the non resident who sells and who buy the shares are having no permanent establishment with India, none is liable to tax. However , the Authority For Advance Ruling recently decided an application on similar issue which will clear the air now. In recent time, Vodafone bought share from Hutchison . Both are based outside India .Off course I do not know the full facts…

Google Buzz
Filed Under: TDS, capital gains, non-resident Tagged With:

Is Consultancy Fee Paid To Non Resident Director Taxable In India?

December 30, 2007 By taxworry 1 Comment

Archived; click post to view.
Excerpt: A non-citizen of India based in the US is a Director of a PVT LTD company in India. The Director also provides consulting services to the Indian company but such services are solely carried out outside India.If company wishes to pay such Director a consulting fee, are there any special tax consequences to be aware of on the company side ? (Of course the Director will have to include that income in her US tax returns). What, if any, taxes should be deducted by the Indian company for overseas consulting fees for this situation.The…

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

Is TDS Required on Service Charges Related To Rented Property?

December 28, 2007 By taxworry 1 Comment

Archived; click post to view.
Excerpt: Partnership Firm is receiving rent from tenants. We are raising Service tax and Cess on gross rent w.e.f 1.6.07 as per Notification given by Service TAx Dept.Our tenants deducting TDS on Net amount payable to us (Gross Rent and Service Tax). Now we are told to tenants TDS should not be deducted on Service TAx due to it is not our income and we are liable to pay to Gorn.dept.Our question iswhether TDS can deducted(Companies) on only Gross rent / Net payable(inclusive of Service Tax) ?What is the TDS rate on Maintenance charges received from tenants (Companies) as per lease…

Google Buzz
Filed Under: TDS Tagged With:

Why Full Amount Of Insurance Premium Not Allowed Deduction u/s 80C?

December 25, 2007 By taxworry Leave a Comment

Archived; click post to view.
Excerpt: I have invested Rs. 54000 in LIC (US 80C ) and my company has qualify tax rs 24000 only . Please let me know the reason for the same. Pradeep DeoWhile exact reason can be told by your company only, I presume that they might have invoked sub-section 3 of section 80C of the I T Act. In easier terms , general perception that any amount of insurance premium is allowed deduction subject to RS 1 lkhs is wrong .Under the 80C provision , the amount of insurance premium, other than deferred annuity plans, are having…

Google Buzz
Filed Under: Deductions Tagged With:

Can An NRI Invest In Firm?

December 24, 2007 By taxworry Leave a Comment

Archived; click post to view.
Excerpt: Can an NRI become a partner in a partnership firm in India and invest in that firm? V S A PRASAD, Hyderabad Any thing related to foreign investments or exchange , RBI is the authority for framing rules. The Master Circular on Foreign Investment in India date 2/7/2007 issued by RBI contains following provision regarding investment in firms . The facility is divided on repatriation basis and non repatriation basis .The excerpts of the circular which is very clear is given below Investments with repatriation benefits A non-resident Indian or a person of…

Google Buzz
Filed Under: FEMA Tagged With:

What Is The Consequance Of Failure To Deliver 15H Declaration?

December 24, 2007 By taxworry Leave a Comment

Archived; click post to view.
Excerpt: What is the consequence if a Deducting authority (for TDS purposes) receives Forms 15G/H, but fails to forward the same to the Jurisdictional CIT or CCIT. Rule 29-C only provides to forward the declarations before the 7th of the next month, but is silent about the consequences if the person fails to forward the same.Ravi Shankar S. , Jaypur The provision regarding lower deduction of tax is given in section 197A under which the scheme of Forms 15G/H are prescribed. The tax deducting authority are liable to any penalty equal to the TDS on the amount if they fail to…

Google Buzz
Filed Under: TDS Tagged With:

CBDT Issues Circular On FBT on ESOP With 25 FAQs .

December 22, 2007 By taxworry Leave a Comment

Archived; click post to view.
Excerpt: The Central Board Of Direct Taxes has released a circular Circular No 9/2007 dated 20/9/2007 which contains 25 frequently asked questions on ESOP. The excerpt of the circular is given below for the benefit of readers Frequently Asked Questions A number of issues have been raised by trade and industry at different fora after the presentation of the Finance Bill, 2007, after its enactment and also after the notification of Rule 40C. The questions and answers in the following section seek to clarify these issues: 1. Whether a foreign company is liable…

Google Buzz
Filed Under: Uncategorized Tagged With:

Should You Deduct Tax At Source On Interest Paid To Bank?

December 20, 2007 By taxworry Leave a Comment

Archived; click post to view.
Excerpt: Taken Vechicle Loan from ICICI Bank, HDFC Bank , Kotak Bank & OD on Axis Bank , Monthly we are paying Principal & Interest .Whether we have to Deducted TDS for the Interest paid to the above bank. Siva Sankar , Pennadam Interest paid on loan is covered u/s 194A . Subsection 3 of section 194A provides cases where the provision of TDS u/s 194A do not apply. Clause (iii) of sub section 194(3) provides that tax is not required to be deducted in case interest is paid or credited to banking or financial institutions.The said provision u/s …

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

Will You Get Exemption U/s 54 On Sale Of House ,If You Own More Than One House ?

December 11, 2007 By taxworry 1 Comment

Archived; click post to view.
Excerpt: The assesse owns three residential properties. out of which he sells one residential property and invests the profit on sale of property in another residential property within two months of date of sale. Is the assessee liable to pay the long term capital gain? Jamuna ,Chennai Yes, you will get the exemption u/s 54 t the extent the capital gains is utilised. The provision u/s 54 is as under 54. (1)Subject to the provisions of sub-section (2), where, in the case of an assessee being an individual or a Hindu undivided family], the capital gain arises from the…

Google Buzz
Filed Under: capital gains

Is Compensation Awarded By Court Taxable?

December 9, 2007 By taxworry Leave a Comment

Archived; click post to view.
Excerpt: Like to know if compensation amount decreed by the court on account of very delayed release of benefits by employer attract income tax. It is only an amount not exchanged against any value. Also, what must be deducted as TDS? The facts of the case was that the person was paid his pension with all arrears by his employer after a long delay of some 7 years. After receiving his pension along with arrears,he filed a civil suit for compensating him for the unjust enrichment received by his employer, a public sector undertaking during the delay period of 7 years….

Google Buzz
Filed Under: A of Your Question, Salary
More Twitter Followers
Subscribe taxworry.com!

Parse error: syntax error, unexpected T_VARIABLE in /home1/taxworry/public_html/wp-content/plugins/genesis-simple-hooks/plugin.php(92) : eval()'d code on line 107