Whether Gift received by some one (as permissible u/s. 56)is a Capital Receipt or an exempted Income?

One of my client has credited its P&L a/c with the amount of MAT credit as per AS 22.And while computing Book profit u/s 115JB he deducted this amount from the Profit as per P&L a/c(Below the line).I require some support (case Laws etc)for the treatment done by my client while computing book profit.

Hi All

Pls resolve my query and mail it to nitinkapoorca@gmail.com

My Query is that if a Company A situated in India is providing services to Company B in USA(New York)using the software manufactured by Company B. In a sense the company A in India is a debtor as well as creditor for Company B and vice Versa.

Now Company A in India has to pay withhoding Tax on payments made to Company B and since it is provising services it also recieves payments from Company B. The payments recieved in INDIA are much more than payments made to Company B.

QUERRY: Is there a possibility to knock off the payments receivable and payable between the companies to lessen the burden of withholding Tax???

Pls Reply

As pr circular no. 97/2007, persons who are not liable for service tax need not to file ST-3. Please go through the following para of the said circular:-



6. Service tax return

6.1 The service tax return is required to be filed under Section 70 of the Act read with rule 7 of the Rules, by 'any person liable to pay the service tax'. This return is required to be filed on a half yearly basis, in Form ST-3. For the periods from April to September and October to March, it must be filed by the 25th October and the 25th April respectively. Further, ‘Input Service Distributor’ is also required to file this return. Persons who are not liable to pay service tax (because of an exemption including turnover based exemption), are not required to file ST-3 return.



6.2 A single service tax return should be filed (in Form ST-3) in respect of all taxable services provided by an assessee. Detailed instructions for filling the return are given in the return form itself.

As pr circular no. 97/2007, persons who are not liable for service tax need not to file ST-3. Please go through the following para of the said circular:-



6. Service tax return

6.1 The service tax return is required to be filed under Section 70 of the Act read with rule 7 of the Rules, by 'any person liable to pay the service tax'. This return is required to be filed on a half yearly basis, in Form ST-3. For the periods from April to September and October to March, it must be filed by the 25th October and the 25th April respectively. Further, ‘Input Service Distributor’ is also required to file this return. Persons who are not liable to pay service tax (because of an exemption including turnover based exemption), are not required to file ST-3 return.



6.2 A single service tax return should be filed (in Form ST-3) in respect of all taxable services provided by an assessee. Detailed instructions for filling the return are given in the return form itself.

Dear Sir,
Recently I have joined a net work marketing business i.e. rcmbusiness run by fashion suitings pvt.Ltd. of bhilwara. I want to ask what is the current position of this company and also what is the future of the net work marketing business in India.

Pooran Chandra

Letter of Credit(LC)is opened by the buyer in favour of the supplier for supply of goods, which ensures the payment to the supplier at the end of the period of LC.Since the money is not immediately received, the supplier discounts LC with bank and realise the money. The supplier pays LC discounting charges.

As per the terms agreed, the buyer reimburses the LC discounting charges to the supplier.

Queries:
1. The LC discounting charges reimbursed by the buyer is in the nature of interest. Is it correct?
Please clear the facts in terms of Circular: No. 65 [F. No. 275/97-ITJ], dated 2-9-1971
2. If it is correct, is it subject to TDS?
3. The buyer in his books of account does not show the Suppliers account in creditors but shows the LC account under acceptance creditors since the LC is opened in favour of the supplier? Is it correct?

I have a query regarding ACD. After issuance of customs notification no. 102/2007 dated 14/09/07, Can additional custom duty on imported goods be passed on the consumers through cenvatable invoices.? Here in the market, there is rumour that w.e.f 14/09/07, Importer can not pass on ACD through Cenvatable invoices. Is it correct?? Please reply my query...

I have a query regarding ACD. After issuance of customs notification no. 102/2007 dated 14/09/07, Can additional custom duty on imported goods be passed on the consumers through cenvatable invoices.? Here in the market, there is rumour that w.e.f 14/09/07, Importer can not pass on ACD through Cenvatable invoices. Is it correct?? Please reply my query...

Dear sir/madam,
My query is as follows:-
1.X Ltd.got the approval of a BOT Project from State govt. agency in sept.2005.

2.X Ltd.formed a SPV Y Ltd. in Nov. 2005 having 70% share and rest 30% held by other entity. Agreement executed between SPV and govt. agency for contract cost maximum of Rs. 150 crore in Nov. 2005.

3.X ltd. made an agreement with SPV Y Ltd. for taking the same contract on 202.00 Crores in Sept.2006.
In between the period of sept.2005 to sept.2006 X ltd. was doing all formalities for the project.

4. For Dec. 2006 quarter X Ltd. shows contract completed 35% and books profit of Rs.60.00 crores in compliance with AS-7.

Here my question is that can X lTD.show such profit in short term where the BOT Project taken by SPV is for 20 years and SPV can earn revenue after completion of project by charging toll charges etc?

Here 70% funds of SPV financed by X ltd itself,so in reality X Ltd is showing inflow of revenue from SPV which is nothing but its own fund invested in SPV.
Is it possible ?