Service tax is exempt if turnover is less then Rs. 10 Lacs.

For which year this 10 Lacs criterie is applicable? like Our Turn over for 2007-08 is Rs. 7 Lacs and till Apr-Sep, 08 Billing is rs. 15 Lacs. So is service tax applicable for this year?

QUERY:

1. ABC Ltd is a public ltd. co. incorporated under the companies Act, 1956.

2. DEF Ltd. is also a company incorporated in India under the Companies Act. The ABC Ltd is holding the majority shares of DEF Ltd. Thus, ABC Ltd. is holding co. of DEF Ltd. and DEF Ltd. is a subsidiary of ABC Ltd.


3. GHI Ltd. is also a company incorporated in India under the Companies Act. and is also a subsidiary of ABC Ltd.

4. JKL Ltd. is also a company incorporated in India under the Companies Act. and is also a subsidiary of ABC Ltd.

5. MNO Ltd. is another company incorporated in India under the companies Act which is also a subsidiary of ABC Ltd.

6. PQR Ltd. is another company incorporated in India under the companies Act which is Associates Company of ABC Ltd.

With a view to augment the business operation of all these companies, as a measure of mobilization of funds amongst the companies it is proposed to transfer the shares of the companies referred to at serial no. 3, 4, 5, & 6 to the Company mentioned at Sr. No. 2.

After implementation of the swapping of shareholding as above, the shareholding pattern of the company at Sr. no.2 may be modified. The ABC Ltd. will be holding 100% shares of DEF Ltd. However, later on DEF Ltd. may issue new shares in such a way that ABC Ltd. will continue to have 85% of the authorized & issued & Subscribed share capital and remaining 15% will be allotted to the outside parties. For 15% shares of DEF Ltd., the share applicant will pay Rs.100 crore.


Now the question that arises out of the above transactions is,

1. What are the implications of the transaction of swapping of the shares by the subsidiary company, so far as liability of capital gain is concerned?

2. Whether the transaction would amount to transfer within the meaning of section 2(47) of the Income Tax Act. ?

3. Whether the transactions of swapping of shares of the subsidiary companies will be covered by the exemptions provided u/s 47(iv) & (v) of the Income Tax Act. ?

4. Whether, in view of the provisions of section 47A (1), 47A (2), DEF Ltd. can alter its share capital structure and issue new shares to the extent of 15% of the authorized capital. ?

5. Whether this transaction will attract capital gain tax in the case of ABC Ltd.?

6. Is there any other mode by which share held under serial no 3,4,5 & 6 can be transferred to company of serial no. 2 against issue of share by DEF Ltd. to ABC Ltd. so that capital gain tax can be avoided ?

Dear All

Can you provide Me the latest list of exempted services list. Particularly from Insurance Industry

eg for what type of Insurance policies the service tax is exempt???

Your reply will be highly helpful to me as I am a Insurance Professional

can i claim the roc filing fee for increasing authorised capital, if yes, please mention the under which sec and otehr supporting caselaws

dear all,


i have two queries
1) how is Inventory of Jewellery Valued and Disclosed in F/S.-is there any specific method apart form AS 2

2) How are live stock and animals valued , depreciated and disclosed?

( say a Co in hill station uses Horses or other cattle to Transport goods.
are these cattle a Fixed asset to the Co? if Yes how are these Fixed assets Depreciated? as AS6 does not cover live stocks? is there any other method applicable to live stock )

Under which head would, the income earned by way of intraday transactions entered on a recognised bourse, be charged and what about transactions entered on the F&O segment of the market?

What is the criteria for tax audit if an assessee has commission income earned as a canvassing agent?

What is the penalty for submission of return after ue date i)in cases where tax audit is compulsory and ii) in other cases.

I would like to know the procedure that is needed to be followed to declare an interim dividend by a private limited company.

Assessee sold an asset on 25th March 2008 and booked long term capital gain of Rs 5 lac.

As per Section 54EC to claim exemption he needs to invest Rs 5 lac in NHAI/REC bonds within 6 months i.e. before 25th Sept 2008.

But he needs to file his return by 31st July. So can he open Capital gain A/c in July'08 and deposit that 5 lac for time being? Subsequently in Sept'08 he will invest that 5 lac in stated bonds.

I am asking this because I heard - to claim exemption u/s 54EC, assessee doesnt have the option to open Capital gain A/c. He has to compulsorily invest it in stated bonds before the due date of filing return.