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

I have a query with regard to Union Budget 2008 changes.

The explanation to sec.67 has been amended to include the following:

(7b) "associated enterprise" has the meaning assigned to it in section 92A of the Incometax Act, 1961;

(c) "gross amount charged" includes payment by cheque, credit card, deduction from
account and any form of payment by issue of credit notes or debit notes and book adjustment, and any amount credited or debited, as the case may be, to any account, whether called “Suspense account” or by any other name, in the books of account of a person liable to pay service tax, where the transaction of taxable service is with any associated enterprise.’

In view of the above change, let us consider a scenario. I am a service provider. I provide services to A (related party) and B (not a related party). I send an invoice for services rendered to both A and B. The invoice is for 100000 service rendered and service tax @ 12% which is 12000, for a total of 112000.

Now, should i pay the service tax on the transaction with A immediately, without waiting for A to pay me the amount?

In respect of B, i would be paying the amount of 12000 service tax, only after B pays me the amount of 112000.

Because of the budget changes, am i liable for service tax as soon as i treat A as my Debtor (being a related party)?

Can someone please clarify? That would greatly help.

Thanks in advance.

Best Regards / VIjay

Dear Sir / Madam,

I am not in receipt of mails from CACLUBINDIA. Please help me in this regard.

Thanks & Regards

Hitesh
My emial id is kothari_hitesh04@rediffmail.com

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

one of the our client is engaged in activity of share trading, only source of his earning. should it be treated as income from business profession or anything else? How the income will be treated, pl. make note that our client is senior citizen.

All of us know that the value of a newly passed out CA is that yearly passing out of CA is 12ooo approx against the requirement of 50000+ by the burgeoning indian economy. This thing is loaded in the favour of indian CA students which helps them secure nice fat packages if they opt for Campus placement.

Now with this new skill "acc. technicians" arising, will this reduce the
prevalent of CAs in India?

Please tell us what we need to take care while writing off slow moving inventory.