I've query on ESOP Trust. Pls guide me me on this.
My client is a listed company. They have created a ESOP Trust ( Employee stock option trust) for alloting shares under ESOP scheme. Shares have been alloted to the trust in the year 2006 at Rs .51/-. Now the shares are transferred to the eligible employees at Rs. 211/- as per the Esop scheme. I would like to know how the difference between Rs. 211/- and Rs 51/- will be dealt in the books of the trust. Is it taxable as long term capital gain.

I'm of the opinion that it is not taxable by applying the principle of mutuality. Since the beneficiaries are employees and the transfer is being made to the employees, the difference of income is not taxable. Is my view correct? Kindly give your opinion.

Dear Experts,

According to AS-5 Prior period items is to be disclosed separately. What is the impact of these items under Income Tax Act and Companies Act? Whether it will be allowed if tds is deducted under I.T. Act, and what is the significance under Companies Act?

Regards,
Shashi

There are three snario:

1) Expenses booked under the head rent during April ,2008 and TDS deducted on the same at the time of booking the expenses but deposited during April 2009.

2) In the above case the assessee has depoisted part of TDS on due date and balance during April , 2009
3) In the above case only CESS and Surcharge remains to be deucted during April ,2008 which has been deducted on 31.03.2009 and deposited ON 07.04.2009

What will be tax treatment in all above cases.

A company has acquired plant and machinery, in the py 2006-07 eligible for additional epreciation u/s 32. however company did not take additional depreciation in the PY.
can the company now claim additional depreciation?

is there any provision or judgement which says that additional depreciation can be claimed in the initial year of its acquition only??

Respected Sirs ,
One of my clients rcd show cause u/s 271(1)b of the act , after rcving we realised that notice was served u/s 143(2) on the wrong address and returned back . since notice was not served in limitation period at the right address , we didnt attend scrutiny proceedings , assessee filed affidavit stating no notice has been received . AO says he will issue show cause u/s 148 . my question is ...can a show cause be issued u/s 148 , when initiation ( by issuing a notice ) of proceedings is commenced u/s 143(2) . can he start 148 before completing 143(3) . His issue is he cant complete 143(3) cos we have challenged his notice and not attending . i told him 144 is a better choice by taking us as assesse in default . Any advices ?

Dear All,

One of my client (Individual) had paid for installation of electricity transformers, ownership of which was transfer to mseb immigiatly. Now the subject matter is that, whether is it treated as capital or revenue expenditure?

If it is treated as capital expenditure at what rate depreciation is to be charged?

Dear All,

What is the kind of Gratuity (approved / unapproved)provision that is disallowed u/s 40A(7) and 43B?

In Form 3CD if we disallow gratuity provision u/s 40A(7),do we need to show the same amount in annexure related to items disallowed u/s 43B.

Thank you

I want to know that if my company pay money to our buyer( outside india) for rewarding the work of our supplier ( india) or contractors.

Then what entry i have to provide in my books of account for payment to buyer (outside india) in that matter

Kindly reply me as soon as possible.

My quetion is
Whether TDS should be deducted in case of Hotel Lodging if a person stays in hotel for more no. of days or a person is a regular customer of that hotel & therefore lodging expense of such hotel in the year exceeds Rs.50000 in aggreegate or Rs20000 in single bill.ASSUME THAT THERE IS NO ANY ANNUAL CONTRACT.

Please provide the ans. with examples. If there is any cerculation on the clarification of this quetion please give me the reference.

Thanks in Advance.
Ashwini