if a manufacturing concern is using its own product for extracting another product does vat apply to them

WHETHER A UNIT ORIGINALLY FORMED AS EOU IN F.Y.2003-2004 CAN AVAIL DEDUCTION UP TO F.Y.2009-2010 ?

If I have raised bill for electroplating to a customer in which I have not specifically charged VAT but charged service tax & VAT on the net amount, is it correct to deduct tax at soucre?

XYZ PVT. LTD. HAS ENTERED INTO AN LEASE AGREEMENT WITH ABC.LEASE PERIOD 60MONTHS(2lacs*60).EVEN IF THE LESSEE WANTS TO TERMINATE IN BETWEEN CO HAS TO PAY RENT FOR BAL LEASE PERIOD. AFTER 12 MONTHS XYZ LTD WISHES TO TERMINATE THE AGREEMNT.THUS WAS BINDING TO PAY THE LEASE RENT FOR BAL PERIOD OF 48 MONTHS(2lacs * 48).AFTER NEGOTIATING THE LESSOR AGREED TO TERMINATE THE AGREEMENT WITHOUT CHARGING ANY PENAL RENT FOR BAL LEASE PERIOD PROVIDED THE CO. WILL NOT BE COMPENSATED FOR THE FURNITURE WORK DONE(60 lacs) AND THE DEPOSIT(5lacs) WILL NOT BE REFUNDED.
QUERRY:-
1.UNDER WHICH PROV OF THE IT ACT THE ASSET CAN BE DELETED FROM THE BLOCK?THERE ARE OTHER ASSETS IN THE BLOCK.
2.IS THE TRANSACTION LIABLE FOR TDS?IF YES, A) What should be the amount?(penal rent or book value + depoit)B) Under which section 194I or 194C?

In a Contract between “Payer” (a small Company registered under the Companies Act, 1956) and “Payee” (a large PSU established under a Central Act), the nature of work is such that payment has to be made after affecting TDS u/s 194-C in the normal course. The Agreement entered into between the two parties, contained a specific Clause requiring the “Payer” Company not to affect TDS. This Clause did not adversely affect the interest of the “Payer” Company so far because the “Payee” Corporation has been every year obtaining Certificate u/s 197 from its (Payee) Assessing Officer not to deduct tax since the objective of “Payee” Corporation was held long ago to be of charitable nature and hence exempted from Income Tax.

In the Finance Bill 2008, it is proposed to restrict the scope of charitable purpose (Refer Pages 1634 and 1646 of Apr 08 issue of the Chartered Accountant). So the “Payee” Corporation would henceforth lose the Tax Exemption status hitherto being enjoyed and become liable to pay Income Tax like any other Company involved in commercial activity.

Now that the “Payee” Corporation has become liable to pay Income Tax from FY 2008-09 onwards, it would not obviously be able to hereafter obtain Certificate u/s 197 from its (Payee) Assessing Officer not to deduct tax. So the “Payer” Company has to affect TDS u/s 194-C before making payments to the “Payee” Corporation; else the entire expenditure becomes inadmissible in its (“Payer” Company) assessment.

Please provide references to any Case Law or Departmental Circulars on this point to enable the “Payer” Company to convince the “Payee” Corporation that it is not fair to impose such condition.

Hi,

We are paying 50000/- per month as director remuneration to MD.Can you suggest salary structure to reduce tax burden.

Interest On Housing Loan U/s.24
I am a member of housing society.I have taken loan for payment of construction cost to society.Subsequently,I obtained loan from employer & repaid the bank loan.I have paid Interest of Rs.50000 during the period 01-04-2005 to 31-3-2007.Further I have paid Rs.25000 as interest for the period 01-04-2007 to 31-03-2008.Allotment letter was issued by society in Sep-07.However possession was yet not been given.
Can I Claim deduction U/s.24 in the F.Y-2007-08 for interest paid & 1/5th of interest for earlier years.

WE HAVE TO PAY A 2500 US$ AS LICENCE TRANSFER FEES TO A COMPANY OF ARGENTINA. IS IT SUBJECTED TO TDS? IF YES, THAN HOW IT WILL BE IMPLICATED AND AT WHAT RATE?

I have the following question:

During 2007-08, the rates for TDS were changed for some sections, with effect from 1st June 2007. In this connection, i would like to understand the following:

Lets assume the rate for Sec.194J was 3% upto 31st May and has been changed to 5% from 1st June onwards.

I have a transaction with a party for 10000 in April 2007. I did not deduct any TDS since the amount was less than 20000. In January 2008, i have another transaction with the same party. This is for 100000. Now i have to deduct TDS on the full 110000 (including the earlier 10000). Now should i deduct TDS @ 5% on the entire 110000 or should i deduct 5% on 100000 and 3% on 10000. Can someone please clarify? (Please note that the rates given above are hypothetical rates and not the actual rates for Sec.194J. However, the rate change indeed did happen with effect from 1st June 2007).

Thanks in advance.

Best Regards / Vijay

Plz guide me on this topic.
If Pvt. Ltd. Co. has made payment towards Rent of office premises Rs.4000/- p.m. the aggregate amount for the year Rs.48000/- will be disallowed under section 40A(3) of the Act.
Payment made in inst. Rs.16000/- p.m. in 3 months