The issue is whether accounting treatment of a particular item of income or expenditure in its books of account decide whether the same can be treated as income or expenditure. For example , an assessee can treat an expenditure as revenue in nature and debits its P & L account . Whether his treatment as expenditure is final for computing his income.
At present Minimum Alternate Tax is paid as per section 115JB of the I T Act. In simple terms , section 115JB provides that in the case of a company, the income-tax, payable on the total income as computed under I.T. Act in respect of any year is less than fifteen per cent of its book profit, such book profit shall be deemed to be the total income of the company and the tax payable by the said company on such total income shall be the amount of income-tax at the rate of fifteen per cent
Exemption under Income Tax Act to entities doing businesses under Special Economic Zones were given 100% of tax break. These SEZ were based on location with the hope that setting up such SEZs will increase the local economy and balances the economic growth with respect to other economically developed area.
Institutes Run By Even Trusts , Non Profit Organisation Are Liable To Service Tax Clarifies CBEC Circular.
CBEC issues circular F.No137/23/2007-CX.4 dt 28/01/2009 stating that even institutes run by no profit organization or Trusts are liable to Service Tax . Only colleges approved by AICTE or deemed university and vocational courses institutes are out of service tax .The excerpt of circular is given below COMMERCIAL NATURE OF INSTITUTE Service tax is leviable [...]