India Income Tax Made Simple

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Excerpt: A foreign vendor provided technical assistance to M/s. ABC co. with a payment terms as follows. $30,000 USD and tax is to be borne by the foreign vendor at applicable rate. M/s. ABC Co. made a liability in its books on 31.03.2008 and deducted TDS u/s 195 of IT Act at applicable rate and deposited the same to IT department.(Dollar rate as on 31.03.08 was Rs.40 per USD, say) Now, actual payment is to be made by M/s. ABC Co. to that foreign vendor(i.e. $30,000 USD) . Dollar rate at the time of payment is Rs.46 per USD, say. Question…

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Excerpt: Our client is an insurance company (PSU). The company had taken a premise on rent in New Delhi since 1996-97. The PSU had enhanced rent twice during the FY 2004-05 w.e.f. March 2003. The company had deducted TDS on such enhancement during the year 2004-05. Also it has been came into the knowledge of the company that earlier i.e. since 2001 the company was deducting the TDS @2% only. Hence, branch manager had decided to deduct the difference of prevailing rates of TDS and the amount deducted earlier with intt. Can PSU do it? please also note that the rent…

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Excerpt: Sri Rajaratnam, the famous tax expert from Chennai, in his regular tax column in The Hindu, has opined that a Non resident can submit form no 15G to avoid tax being deducted on interest income, in all such cases where there is no taxable income. This would obviously save the assessee from needless filing of return and running round the income tax officer to get the refund. The form 15G clearly provides by asking a question whether the applicant is a resident or Non resident. N Rabindranath With due respect to the taxation stalwart, in my opinion , a…