what is the tax treatment in case when the employer paid the tax to the it department on behalf of the employee.Whether this expences made by the employer can be allowed or disallowed in the hands of the employer and what will be the case in the hands of the employee as well.

Fact:
A limited company engaged in providing Tower Installation Services by using certain materials which are ultimately transfer to the contractee.

As the installation service includes the transfer of property in goods, the company is charging VAT @ 12.5% on 80% of the Gross Amount Charged (Including Material) according to the provisions of DVAT. As per DVAT provisions 20% abatement will be available in case of composit work contract.

Further, the company is charging Service Tax after availing 67% Abatement under notification 1/2006 i.e. service tax is charged on 33% of the Gross Amount Charged.

By following the above procedure, company is paying tax (both VAT and Service Tax) on 113% of the gross amount charged.

Query:
Can the company pay Service Tax on balance 20% of the Gross Amount Charged by following the Notification No. 12/2003 or Rule 2-A of the Service Tax (Determination of Value) Rules 2006, rather than paying service tax on 33% of the gross amount charged.

An agreement entered into by a resident company with a non-resident foreign company situated in Dubai(UAE) for providing management consultancy/technical services by later for a project to be undertaken in India.

Whether remittances to the non-resident foreign company that does not have a permanent establishment in India impose TDS liability on the payer in light of section 195,Double taxation avoidance agreement with UAE & section 115A of Income Act

An agreement entered into by a resident company with a non-resident foreign company situated in Dubai(UAE) for providing management consultancy/technical services by later for a project to be undertaken in India.

Whether remittances to the non-resident foreign company that does not have a permanent establishment in India impose TDS liability on the payer in light of section 195,Double taxation avoidance agreement with UAE & section 115A of Income Act

I have the follwoing query -

A company has bought back it;s FCCB ( Foreign Currency Convertible Bonds ) at a discount from non resident sellers as per RBI permission. The seller may have some capital gain on such bonds, however the buying back company is not having any infomration about the seller or his purchase price or period of holding. In such a scenerio there would be any withholding tax liability on the paymemt made to non resident sellers. if yes under what section and what rate?

Respected All,
I have received a PO in which Customer has mentioned that service tax is not applicable to education institute?

if yes then what is the process for that?

We the service provider and also traders under KVat -2003. my quary is that can claim the input service tax on telephone charges , coureir charges Etc.at the rate of 100% . we are using the telephone for both trading and service . if we cannot claim 100% means what is the persantage we can claim.

Dear All,

Can you tell me that whether the bsr code provided by bank is different when we deposit tds challan no.281 and through e-payment. I found that bsr code is different when i deposit the cheque with challan 281 and E-payment.

Waiting for your reply'

what is the difference between 'presume' and 'assume'....

please send exact definition of 'under taking'