The Taxable profit for FY 2008-09 of the Company is Rs. 2 Crores.

The Company is having disputed debtor M/s XYZ amounting to Rs. 9 Crores which are accounted in Books of accounts. These consists of Rs. 5 Cr. as principal amount of debtors and Rs. 4 Cr. as interest charges thereon upto 2001-02.
However, case is pending before arbitrator for total claim of Rs. 15 Cr. i.e. Rs. 5 Cr as principal and Rs. 10 Cr interest uptodate i.e. Rs 4 Crs. accounted in books and Rs. 6 cr unaccounted.

Now, the company desires to write off interest of Rs. 1.50 Cr from above mentioned amount, on the ground there is no possibility of recovery of the same and to show taxable profit of FY 2008-09 as Rs. 0.50 Cr. [Rs. 2 Cr – Rs. 1.5 Cr.]

The query is:-

1. Now the question is whether the write off of prior period interest amount Rs. 1.50 Cr is allowable under Income Tax for the year 2008-09.

2. If the partly write off of prior period interest amount Rs. 1.50 Cr is not allowable, whether whole of interest ie. Rs. 4 Cr. is allowable under Income Tax for the year 2008-09 as change in policy of company i.e. not accounting the interest on disputed Debtors and account for the same only when it is actually realized.

Please comment in reference to Tax Audit Report and allowability of prior period interest income written off.

Hi



I want to know can i (from Mumbai branch)transfer my VAT input or output credit to my delhi branch or vice versa ,what is the requirement for this transfr(including sales tax office).& tell me entry for that

waiting for reply


thanks & regards

Nilesh

Can I have any guidance notes on internal audit and internal controls of a company engaged in dairy farm and selling dairy products?

what is the mening of capital asset

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what is the legal formalities to be seen while introducing a foreigner as a director and allotment of shares of a pvt ltd company,pl advice compliance to
1) ROC, 2) RBI

Dear All
Yesterday, i have posted my querry- which is__

Can a company file revised return of allotnment under the companies act. ? If yes, under which section it is provided?

In response to this querry, i have got three replies, In two replies it is replied in affirmative and in third reply it is said NO, it can not be revised.
I am more confused now. Can any one with authority give proper reply.

Regards
NKD

DEAR SIR/MADAM

AN INDIVIDUAL RECENTLY SOLD ONE HOUSE PROPERTY.SALE VALUE NEARLY Rs23 LAKHS. IT'S A ANCESTRAL PROPERTY. TILL TO DATE HE DIDN'T FILE ANY RETURN TO IT DEPARTMENT. HE IS LIVING IN URBAN AREA. IS HE SUBJECTED TO LTCG OR NOT? IS HE HAS TO PAY ANY TAX ON THIS SALE?

THANKS IN ADVANCE

in CARO Point 10 What is the meaning of Cash Loss what items added in loss eg Dep & any othe please give an example.

thanks

Hi,

I want to under what section I am suppose to deduct tax on Data Processing Charges? The Consignor is an individual.

Thanks,

Gurmeet