hello all,

My sister (living abroad) bought a villa for 50lacs in hyderabad. The builder is asking her to pay VAT(@4%)and ServTax(@4.12%) on the "Cost of Construction=41 lacs" component. Is this correct???

So the point is, I was reading the site/forum and found few articles relating to the exemption given to homebuyers in terms of ServTax by the Govt of India. Is this still applicable as on Jan 2009, I quote the following for easy reference:

1. "https://www.caclubindia.com/news/2007/9/service_tax_relief_for_home_buyers.asp"

2. "https://www.caclubindia.com/news/2007/9/home_buyers_get_service_tax_waiver_.asp"

From these above articles I understand that she doesn't have to pay ServTax as demanded by the builder.

Please enlighten me on the issue and dont hesitate to ask me if u need any clarifications from my end.

Also can anybody tell the Circular Number issued on 23Aug,2007 regarding the same.So that it would be handy to have a printout and show the builder if needed.

I found one link pertaining to the above, i really dont know if it matters to the case above or not. Anyways all u learned people go thru and let me know where is it mentioned??

http://www.servicetax.gov.in/circular/st-circular07/st_circ_96-2k7.htm

Sai

I want to give gift to son of my mother Rs.60000/- tax free gift , son of mother is my relatives or not as per definition ?.
2.Spouse of the individual is relative as per definition but if husband give gift to wife Rs.5,00,000/- for reducing his tax liability but if same amount is investing in FDR by wife and income is earning whether same will be added in husband income as per clubbing of income, if it is taxable tax liability of husband not reducing i want to know any provision under the act is there husband can give gift which is not tax for clubbing provision.
Regards Dhaval Desai

If Non resident Indian sale House Property,do i claim deduction U/s.54 say Individual or HUF have to invest in residential house property within year 1 before.
Q.2 if N.R.I HAVING LONG TERM CAPITAL GAIN INCOME ON SALE OF HOUSE PROPERTY HOW DO I CALCULATE income tax liability, Eg.PROPERTY PURCHASE DT.6.2.95 Amt Rs.525000 cost and sale on dt.31.12.08 Amt Rs.21 lacks
Regards Dhaval Desai

Is purchase of foxed assets deducted & sale of fixed assets added in cash flow statement in investing activities?
If yes then why?

Please give your views on the follwoing matter:

Mr. A has booked a Flat on Jan 2004 and paid 1 lacs as booking advance:

He has received the allotment letter in May 2004 and he paid 90% consideration of the total Flat on July and Aug'2004.

Till Aug '08 he has neither received the possession nor the agreemnet has been executed.

Now if Mr A sells/ transfer the nomination to other person with the consent of the builder he will incurr Capital gains.

My Query/ clarifiaction

The Capital Gains shall be Long Term as the allotment was made in May 2004.

Indexation will be available on the basis of the payments made .

Exemption shall be claimed under section 54 and not 54F as the assest will be treated as "CAPITAL ASSET" and not House Property.

Please give your views if you all differ.

Hi Everyone,

When we get a foreign exchange remittance from oversea the banks usually provide a credit note stating the total amount (in Rupees) less bank charges. This amount is credited in the customer's account.

But being a customer of the bank, How can we verify that the amount credited was actually realized by the bank? They may credit less amount although they may have realized higher amount due to foreign exchange fluctuation.

Dear all, I need your help. Case is that we had to sale our property for 50 Lac and we had received Rs. 5 Lac as an advance. Now the party has cancelled the deal and accordingly we have forfeited the advance amount of Rs. 5 Lac. My entity is properietorship. I am taking depreciation on this property.
My query is that whether Rs. 5 Lac is my Other sources Income or its capital receipt and will adjust whenever I will sale this property.

Pl express your opinion with supporting case laws if any
A widely held Public Limited Company (Say A Ltd, a holding company of several other companies) invests Rs.30 Lakhs in a private limited company (Say B Pvt Ltd) by way of equity capital out of proceeds of its own equity (not from borrowed funds) say in AY 2003-04. B Pvt Ltd is regular in paying dividend to its shareholders incl. A Ltd.
In AY 2006-07, A Ltd for its general business purposes including investment in capital of various private limited companies, borrows money on interest from B Pvt Ltd Rs.20L at the ruling market interest rates on the basis of a loan agreement with all usual terms and conditions

The Assessing Officer (AO) while assessing the income of A Ltd would like to invoke the provisions of Sec 14A holding that the loan is nothing but withdrawl of capital investment in the guise of loan and investments are made in other companies after taking this loan.

IS THE ACTION OF AO JUSTIFIED?

Sir i am an articled clerk.Presently i am auditing in a pvt co.The co. has spent some amount for sending message through mobile and treated it as sales promotion exp.
pls explain the difference between the above duo.and kindly clarify the above mentioned situation considering FBT

Should we deduct tds on followings Expenses, if yes in which section:-
1. Repair & Maintenance to Motor Car
2. Design & eng Charges
3. Exhibition & seminar
4. Export & Clearing charges
5. Internet Charges
6. Legal Exp
7. Machinery hire Charges
8. Repair & Maintenance other than Motor Car
9. Traveling exp
10. Water Charges