The company acquired industrial license from Govt to produce certain commodities. How to depreciates / amortised the license amount as there is no specific usage period. There is no specific rates in schedule XIV. Cost of License is in Lacs

In a Contract between “Payer” (a small Company registered under the Companies Act, 1956) and “Payee” (a large PSU established under a Central Act), the nature of work is such that payment has to be made after affecting TDS u/s 194-C in the normal course. The Agreement entered into between the two parties, contained a specific Clause requiring the “Payer” Company not to affect TDS. This Clause did not adversely affect the interest of the “Payer” Company so far because the “Payee” Corporation has been every year obtaining Certificate u/s 197 from its (Payee) Assessing Officer not to deduct tax since the objective of “Payee” Corporation was held long ago to be of charitable nature and hence exempted from Income Tax.

In the Finance Bill 2008, it is proposed to restrict the scope of charitable purpose (Refer Pages 1634 and 1646 of Apr 08 issue of the Chartered Accountant). So the “Payee” Corporation would henceforth lose the Tax Exemption status hitherto being enjoyed and become liable to pay Income Tax like any other Company involved in commercial activity.

Now that the “Payee” Corporation has become liable to pay Income Tax from FY 2008-09 onwards, it would not obviously be able to hereafter obtain Certificate u/s 197 from its (Payee) Assessing Officer not to deduct tax. So the “Payer” Company has to affect TDS u/s 194-C before making payments to the “Payee” Corporation; else the entire expenditure becomes inadmissible in its (“Payer” Company) assessment.

Please provide references to any Case Law or Departmental Circulars on this point to enable the “Payer” Company to convince the “Payee” Corporation that it is not fair to impose such condition.

Can anyone of you pls tell me what r the consequances of leaving the job without notice.
I did not sign any bond but i signed my appointment letter according to which i have to pay one month salary in lieu of notice.
But if i don't want relieving letter than it is necessary to pay the notice period salary.

i have completed 15 months of articleship and as my c.a. is not giving me enough leaves to appear in PCC Nov. 2008, i want to leave articleship in july, so can i leave articleship for the time being and what will be the effect of leaving it? will i be elligible to appear in exams?

I AM A ARTICLE ASSISTANT .IHAVE A PROBLEM
.I M SUBMIT MY FORM 103BUT IN THE FORM IM NOT WRITE MY Ist YEAR STATUS BY MISTAKEN BUT MY CA IS WRITE IN THE APPROPRIATE BOX THAT HE IS A CORRESSPONDANCE COLLAGE STUDENT . SO IN THIS CASE I ANY HAVE PROBLEM WITH MY EXAMS OR NOT . OR IF WE TAKE A LEAVE FOR MY COLLAGE EXAMS SO THIS LEAVE IS COUNTED LEAVE OR NOT .HOW MUCH LEAVE I CAN TAKE . I CAN TAKE A LEAVE FROM 10APRIL TO 1JUNE . IS IT POSSIBLE OR NOT

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