I am a businessman.I purchase goods from calcutta, chenai, delhi, banglore payment of purchased bills are made by sroff(Financer) to the relevant parties by cheques and thereafter the same is repaid by me to the sroff (financer) by cheque after 10 to 15 days with interest.

Now my auditor raising a query that the above amount will be treated as loan which is not accepted by account payees cheque and hence the transaction is against the provision of Income Tax Law i.e. section 269SS.

The second query reised by the auditor is that the payment to the parties against purchased is not by account payee cheque which is also against the provision of Income Tax Laws i.e. section 40A(3)

Kindly give me the solution about the above queries and let me know whether the auditors view is correct or not

Dear All,
I am working in an IT enabled service provider organisation.We provide AMC & maintainance services to customers.
While making monthly payment of service tax, we adjust input service tax paid & pay net amount.However there is one problem i am facing that service tax input paid on services like telephone, communication, banking & finance , transportaion,repairs & maintainance etc. is more than service tax collected .
Now question arises that should we pay service tax for the particular month or claim for refund ?

Dear All,
I am working in an IT enabled service provider organisation.We provide AMC & maintainance services to customers.
While making monthly payment of service tax, we adjust input service tax paid & pay net amount.However there is one problem i am facing that service tax input paid on services like telephone, communication, banking & finance , transportaion,repairs & maintainance etc. is more than service tax collected .
Now question arises that should we pay service tax for the particular month or claim for refund ?

We have parternership firm, I got late in depositing the amount of service tax, but I deposited the amount with interest after due date, and also filed the return well in time, Now Central excise authority says that they will charge penalty @ 200 per day by issuing show cause notice on our firm, kindly resolve my this query with proper reference and background.

Surinder

1.whether vat can be levied on the sale of the fixed assets which is not regular business of the aseesee?


2.in service tax on transportation,there is a provision that on 25% of the total frieght,service tax can be levied. my query is that whether the person who has paid such service tax ,can he claim credit of such service tax?

pls reply as soon as possible.
with regards,
C.A.NISHIT DOSHI

Payment should be made by Account payee cheque only, for Purchase of goods whether it means that payments should be made to the Purchaser only, and not to third party on behalf of purchaser.

By amendment in the Taxation Law (amendment) Act, 2006, the word "an account payee cheque or an account payee draft" was substituted for the word "a crossed bank cheque or a crossed bank draft"

In the banks balance sheets, the advances which were mentioned are Gross Advances or Net Advances? Definition of net advances is Gross advances – gross NPA.

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