As the above query is solved the reply is as follows:-
Expenditure incurred by service provider on behalf of the service recipient and reimbursed to the provider can be deducted from the value of taxable services(including the said exps.)only if the service provider is acting as a pure agent of the service recipient. Other wise gross amount(including reimbursed amount) is liable for ST. Pl refer explanation(1) to rule 5(2) and CBEC circular F.N0.B1/4/2006-TRU

Explain mening of pure agent and explain the above with help of example.....please

Dear Experts,

Rs.70,000/- was deducted from my freind VRS benefits forwards Income Tax in the year-2001.Form-16 still not issued by Employer(HMT)
Kindly advice to me how to claim back from employer/ITO.

Dear Experts
Me & my collegue both cleared our CA final exams in Nov 08,both was granted 100 days leave but my collegue had taken earlier a leave of around 50 days for personal reasons
he was registered on 17.10.2006 for articleship & now wants to move to his friends firm,our principal is telling if he takes transfer he will write excess leave of 22 days which leads to extension of his articles by around 22 days (i.e articleship completes on 10.11.2009)
now my question is can he take transfer will this not affect in anyway as my prinipal has signed that he will complete his articles before 31.10.2009 at the time of exam?

PS:I have requested my friend not to take any decision till he gets positve answers,kindly help.

There is concept of deemed export under excise. Accordingly we have received an order from Maharashtra state electricity board for erection of sub-station but the project is funded by world bank, so it is covered undered deemed export. How shall the turnover from this order appear in the financial statements, wether it will be shown as domestic turnover or export turnover.

we hav started a new business as partnership ,
two partners are there fixed Capital 25000 per head.
other than this they paid 500000 per head to start a business .

This 500000 should i consider as current a/c or loan a/c

if the same i will consider as loan then how much percent interest on loan i have to pay

please advice me accounting treatment for the same

Is TDS is deductible on Buses which is being given on hire basis to schools? & if yes, then under which section will it be deductible. whether Under 194(I) considering buses to be a plant & machinery or 194(C).

we are importing mobile acessories. the prices are in dollars. please advise me entry for same. in invoice they have included only prices for product excluding freight. we paid custom duty i want the entry for this also.

how to treat this situation in accounts please guide me

Dear All,
My Company is received notice from income tax deptt. , regarding TDS& TCS for non complance of TDS Challan & Return .Department Has Aked Reply for non Complaince of TDS As on Paticular Date .
, But My both M.D is Out of State , due to health problem , we are wanting for extention of date from the dept. please give me suggestion &sent format of extention letter

(Q-1)Reimbursement of Mediclaim Premium in respect of policy approved for section 80D of the Income tax Act.

I have paid the Mediclaim premium for my wife, my daughter and for myself. My employer has reimbursed me the said premium. I understand that the said reimbursement is not treated as perquisite in my hands in view of clause (iv) of proviso to section 17(2). Thus, no tax is payable my me, however, my employer may have to pay FBT.

My query is whether I can claim the deduction u/s. 80D in respect of Mediclaim premium initially paid by me but later on it is reimbursed by my employer. I understand that section 80 D speaks about individual and HUF and only requirement is that the premium shall be paid out of income chargeable to tax and it need not necessarily be the out of salary income. I feel that I have complied with the requirement of section 80 D by paying the premium out of my salary income. The event of reimbursement is occurred subsequently.

In view of above, please state whether am I correct in above understanding? Please also state your view to give correct treatment.

(Q-2) Transport allowance u/s. 10 (14)(ii) and reimbursement of running & maintenance of Car Expenses.

My company has given me the transport allowance of Rs.9,600 p.a.. Further, the company has given me the car for using it for official as well as personal purpose. At present my company reimburses me for servicing & repairs expenses for the said car and pay the FBT on such reimbursement. The car is owned by the company.

I am using the said car for commuting between office and residence, for office purpose and for other personal purposes.

I have proposed my company to reimburse me the petrol bills, cleaning expenses not restricted to repairs expenses being the running expenses of car.

The above petrol bills are inclusive of expenses incurred for commuting between office & residence.

Further, the company additionally reimburses me @ Rs. 4 per k.m. in respect of local travelling for office purpose, which is not part of my pay package.

From the above, I want to know that whether I can claim transport allowance of Rs. 9,600 and further submit the petrol bills to take salary in the form of reimbursement.

(Q-3) Children Education Allowance & deduction of tuition fee u/s. 80C.

At present I have one child. I pay Rs. 10,000 towards tuition fee. My employer gives me education allowance of Rs.1,200 which I claim as exempt allowance u/s. 10(14)(ii) and also claim tuition fee of Rs.10,000 in section 80C.

From the above, I want to know whether my both claims are correct or I am claiming the double benefit of Rs.1,200. Should I have to exclude Rs.1,200 from Rs.10,000 while claiming deduction u/s. 80C.


(Q-4) Children Education Allowance & Hostel Allowance.

My company gives me children Education Allowance & Hostel Allowance as part of my salary. I have a child but neither studying nor staying hostel.

In above circumstances, I want to know can I claim Rs. 100 per month and Rs.300 per month towards children education allowance and hostel allowance respectively. I understand that section 10(14)(ii) exempt such allowance regardless of incurrence of expenditure.

Please clarify.

(Q-5) Reimbursement of personal telephone including mobile phone expenses.

At present I am incurring Rs.12,000 per year towards my personal telephone & mobile expenses.

I have proposed my company to reimbursement me the said amount by converting my salary as reimbursement.

I understand that as per section 17(2)(vi) read with proviso to rule 3 (7) (ix), the above said reimbursement is not treated as taxable perquisite in my hands, however, company has to pay FBT. Further requirement of “actually incurred” shall meet even if instead of direct incurrence, the same is incurred by way of reimbursement.

Further, my apprehension is can department take recourse of section 17(2)(iv) and treat the said reimbursement as taxable perquisite in the hands of employee in spite of clear provision of section 17(2)(vi) and rule 3 (7) (ix).

Please clarify.


****

SIR,

I AM WORKING WITH ONE LIMITED COMPANY BEING A BRANCH ACCOUNTANTN. WE HAVE TAKEN SERVICE TAX NUMBERS UNDER "TRANSPORT OF GOODS BY ROAD" SINCE LAST 4 YEARS. SINCE LAST 3 YEARS THERE IS NO TRANJECTION i.e. SERVICE TAX PAID LIABILITY IS NIL - NO SET OFF.

SO, KINDLY ADVICE US WE ARE LAYABLE TO SUBMIT NIL RETURNS & THERI IS ANY PENALTY FOR NIL RETURNS.

THANKS & REGARDS