Assessee purchase a property below the guideline value prescribed by the State Government. But the Stamp duty is paid by the assessee as per guideline value.

whether the buyer has to pay tax for the difference amount.

i am in a contract with an educational institution, whereby the educational institution provides raw material- vegetables, dairy, and rice. We provide gas, and other cooking material including staff for cooking the food for the students.We give them a bill for providing Professional services for running the mess.
Please suggest whether we shall be able to claim exemption under entry no. 9 of mega exmption notification under auxillary educational services.

I m an IATA agent, As a freight forwarder I booked Space with Airlines & Sell it to My Exporters.

after every booking Airline gives me 5% IATA commission plus 10% Discount.

Service tax is applicable to 5% IATA commission.

Kindly advice that the 10% Discount will attract to service tax as per new service tax rules e.f. 1st July'12.

Thanks
Jyotsna

Dear Sir,

My father in law purchased a house in March 2001 for 4 lakhs. Upon his death in Sep 2011, my wife inherited the house (sole heir). We sold the house in July 2012 for 30 lakhs.

My query is regarding the tax implication for the sale of this house.

Since my wife came into possession of the house in 2011 and sold it in 2012, does the gain arising from the sale qualify as a short term capital gain or does it qualify as a long term capital gain?


Assuming that the cost of indexation is taken from the year 2001 onwards (the original date of purchase), I calculated the indexed cost of acquisition to be:

(Purchase value * CII for 2011-12)/(CII for 2001-02) = 400000*785/426 = 737089.

So, the capital gain would work out to be:

Sale price - indexed cost of acquisition =
3000000 - 737089 = 2262910

My wife does not have any other income, so removing the zero slab limit from the long term capital gain, the net LTCG would be 2262910 - 200000 = 2062910

So, the tax liability would work out to 0.2 * 2062910 = 412582


My questions are:

1] Assuming that we treat this transaction as a long term capital gain, is the derivation above correct?
2] How would the calculation be modified if this transaction were to be treated as a short term capital gain?
3] Will investment into PPF reduce the LTCG tax liability?

Looking forward to your help on the same.

Dear All,

Is there will be service tax liability of company on Bills of renting of motor vehicle if the bills are issued on the name of employee and bill amount is reimbursed by the company.

in this case The tax evasion may took place.


My doubt is raised because the actual expenditure is on the behalf of company

Does a CA need permission from ICAI or need to inform them if he intends to do Masters in Business Law in distance course from NLU, Bangalore?

The service provider is covered under reverse charge mechanism and thus the service recipient is liable to pay service tax.

What is the treatment of the service tax paid by the service provider in the course of business?? As he wont be able to take credit for the same as he is not liable to pay service tax to the government.

Why we deduct 10% Tds of the salary and what is the condition when we have to calculate taxable income and then divided by 12 to calculate Tds.

D sir,

The Income Tax dept has written My name (Suresh jain) on Name column and also written the same name (Suresh jain) at Fathers Name column.I do not want to change by PAN number once allotted because utilizing at many departments .Please advice how i can get the corrected PAN card on same number.

Suresh Jain

Dear sir,

We are found defaulter u/s 201(1)/206C(7) of Income Tax Act, 1961 for Amount deducted/ collected but not paid with government, though we have deposited the same amount within due time for the FY 2008-09.


Now what we should do in this regard!