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.

dear Sirs,

kindly clarify the following:

While issuing duplicate share certificates……how the numbering will be done…..??

Suppose last share certificate no. 112

Lost share certificate (the one against which duplicate share certificate is to be issued) No. 56

Now what will be duplicate share certificate no.... 56 or 113 ?

Is tds is deductible on Freight & forwarding charges payable to non-resident co.The payment is to be made in foreign currancy.If yes @ what rate & the applicable section & procedure for the same.

Regards

Hi all,

I was verifying the SEZ compliance of one of the client. On discussion, client said that there are certain restrictions in movement of employees like:

a) Transferring old employee from Non - SEZ unit to SEZ unit (within the company)
b) Transferring newly joined employee from SEZ unit to Non-SEZ unit.
c) Movement of employees between 2 SEZ units of the company.

We were also informed that only "On Bench" employees can be transferred as said above and for other categories of employees, to the extent of 20% alone can be transferred.

They are applying 80:20 criteria as applied to P& M in SEZ.Even on discussion with other client in SEZ we are informed the same.

Is it Correct? Is there any such restrictions? Is there any such provision / case law / notification?

Kindly help on the above issue also provide us the list of State government (Tamil Nadu) benefits available to SEZ unit (Particularly the VAT, Electricity duty, stamp duty etc).

Thanks and Regards

V.S.Sugan
E-Mail: v_s_sugan@yahoo.com

Hello all, I just got the news that the karnataka state goes for poll on 10th May 08.The last paper for CA Final exam in on 10th May 08.Is there a chance for postponement of the last paper?