Dear Sir

Who is liabale for TDS on freight in following cases.

(1) A trader who is from Indore and dealing in grains and purchases grain from a station i.e. Kota and directaly sold Grains to Pune and bilty of freight is in the name of Indore trader. partial payment of bilty was made by agent of trader at kota and partial was made by trader of pune and recovered from trader of Indore.

My vendor has raised a invoice for a prior period Interest...will this be a allowable expense in my books...

If L&T RMC sells RMC to a Developer, who is selling the structure (no separate billing for various components), is the Developer eligible to claim input tax credit?

We were told this is possible, but have recently received inputs saying it is not possible.

We are looking at the following states - WB, Maharashtra, Rajasthan, AP, TN, Punjab, Goa

If L&T RMC sells RMC to a Contractor, who is doing item-wise billing (separate billing for RMC, bricks, labour, etc.) with his customer, is the contractor eligible to claim input tax credit?

We were told this is possible, but have recently received inputs saying it is not possible.

We are looking at the following states - WB, Maharashtra, Rajasthan, AP, TN, Punjab, Goa

Please guide me to appreciate the following wrt to the supramentioned subject
1. My employer is not adjusting Rs. 2 lacs i.e. the amount it has recovered from me in lieu of notice pay, in my tax computation. It contends that the same cannot be adjusted against the salary income accrued to me as per the terms of the employment. It says that the amount has been adjusted against the leave encashment and the salary for the month of Sept,07 in which i worked with them.

I have the following to submit as per the income tax act salary is defined as "
salary is the remuneration received by or accruing to an individual periodically for service rendered as a result of an express or implied contract".

Accordingly net inflows against the contract of employment is what should be brought under the ambit of tax and the total salary paid net of notice pay received should be used for tax computation. To simplyfy my observation, I want your opinion for a scenario where the employment contract outlines for a payment of 2 months basic pay to an employee in case he achieves his objectives by the end of the year otherwise the employee is responsible for paying 2 months basic pay to the company. In my opinion in the above scenario salary will be adjusted with 2 months basic pay in both scenarios i.e. in case of payment by employer it'll be added in the tax compuation of the employee and vice versa. Please help me because i am getting hugely impacted due to this stance of my employer.

2. Further, i want to check with you that will there be any difference in tax for me in case my present employer pays the notice period directly to my previous employer.

Many thanks for your thoughtful advise.

Our cliant is going to start a business of Oil Exporting, for this thay are purchasing a machinery of rs. 5000000 but our business will be set up after 2 or 3 year, can we claimed additional dep.?

If yes than in which year?

During the course of I.T.Asst.proceedings, if AO issues summons to third parties for confirming the transaction and such third parties fail to respond to summons, what shall be the stand of the assessee on account of failure on part of third parties

Please explain me cammon inputs to claim input credit under apvat

We are providing maintenance services to our clients and we are charging maintenance charges for that.We are charging service tax on service fees which is 15% of our actual expenditure on maintenance.Are we doing the right thing or we should charge the service tax on the whole amount i.e. including our actual expenditure.

Dear All,

Thanks for your support extended to me.
Further i required clarification regarding Transfer pricing. Can any give me an idea that is there any change in the eligibility of Turnover to take up the scrutiny assessment by Transfer Pricing Officer.(TPO). (Previousely scrutiny will be taken up by the TPO if the Turnover of a company exceeds Rs.5 Cr.) Please Clarify .

Rgds
Arun.P