Sir, can activity like calibration and testing amount to manufacture and come under excise duty?

An educational institution, which is expempt under income tax,made fixed deposit with a private bank. The bank had deducted TDS for 2007-08 and issued a TDS certificate.
When approached they said since it has alredy deposited with the income tax authorities and informed that for the year 2008-09, we should submit exemption certificate so that the bank does not deduct tax at source for 2008-09.

Query

(i) Is there any possibility we can ask bank to refund the deducted amount.
(ii) If not, how and what manner we should take up the matter with Income tax authorities so that the deducted amount is recovered.
(iii) The education institution recoveres TDS from different payments(contractors, professional services etc.). Can we adjust with this amount (for say August 2008) against the tax deducted by bank during 2007-08 and pay less for August 2008.i.e to say TDS recovered during August 2008 by the educational institution Rs.1000
Less : TDS deducted by bank Rs.100
Paid to August 2008 Rs.900.

Payment has been made to UK Kimited as Exhibition Expenses for organising Exhibition at countries outside India.
Regd. Office is in UK.

Whether TDS Liability u/s 195 arises on the part of the party receiveng services or not.

If no, how can we verify about the Permanent Establishment of the UK based Co. as per DTT with UK.

what is stamp duty exactly?wat r the modes of payment of stamp duty?if we purchase a 100 rs stamp paper,is that mean that we have paid 100 rs stamp duty..?on what amount its depend on?how to calculate.?tell me clearly...
who r responsible person to calculate stamp duty?

A Doctor is running a Pathology Testing lab. His receipts during a year is 25 Lacs.
Will be liable to Tax Audit under 44AB.
In case he is not liable can you court some decided cases in this favour

Please refer to the query below and the response of Mr. Sarma wherein he has stated that for the recognised PF Trust no tax is to be deducted to the extent of exempted rate of 8.5(present rate) when the payment of interest is made on withdrwal of PF monney even after the date of leaving the employer.

My ex-employers have however, deducted tax at source @10% from the date of leaving the company to the date of payment of withdrawal amount even though the PF withdrawal took place after 5 years of PF membership.

They seem to have drawn inference where in the case of ONGC Ltd. v Income-tax Officer (TDS), Dehradun ITAT Delhi Bench ‘A’ observed, “Accumulated balance due to employees ] as provided in rule 2(f) of Part A of the Fourth Schedule, to the Income Tax Act 1961, would mean the balance due or claimable by an employee on the day he ceased to be the employee of the employer maintaining the provident fund and, therefore, such balances would imply amounts credited to the accounts of employees during their employment. It was only these balances that were exempt from tax u/s 10(12). The assessee, a recognised provident fund, had made the impugned credits to persons who were no longer employees of ONGC. The cessation was not due to their ill-health, the discontinuation of the employer’s business or for any other cause beyond their control. The amounts credited in the accounts of former employees would not be exempt from tax.”

Even though ITAT ruling was prompted by the fact that employee would leave their accumulated balance with the PF trust to earn tax free interest. While in my case there was no impugned credit but a settlement by way of withdrawal. Further the settlement has happened in the same financial year immediately after the statutory period for withdrawal was over and the formalities of withdrawal were completed.

Kindly advice if I could apply for refund of the TDS and if yes what diclosure needs to be made in the return of income.

Thanks & regards


author : shreyansk
Posted On : 7/3/2007 7:16:54 AM
If a person retires, but does not withdraw his PF and interest paid to him is liable to TDS or not. Please reply at shreyanskavdia@yahoo.com

Expert : Vinod
Posted On : 7/3/2007 11:40:34 PM
You need to specify the nature of PF. Whether it is a Recognized PF, Unrecognized PF or Statutory PF ?

Expert : SUBRAMANIA SARMA G
Posted On : 7/11/2007 12:03:59 AM
In the case of Statutory Provident Fund, interest credited to the account of the employee is exempt. In the case of recognised provident fund, the interest credited to the employee account upto a limit speified [ in the current year 9.5%] is exempt. In the case of un recognised provident fund, interest credited is exempt in the year of credit, but when the balance in the fund is returned the interest on the employees contribution would be taxable under income from other sources, interest on the employers share would be taxed under the head salarie as profit in lieu of salary

Hello, i am getting labour job for electronic industry, i have my TIN for trade & manufacturing in electronics. how i can give them tax bill, more clearly can i give him Work Contract Tax Bill , if yes at what percentage? If you fill i am asking too much in one question otherwise i am having lots of question like this, expecting response by expert in field, thanks in advance

please send me procedure for calculating provision for gratuity, whether a provision for gratuity is necessary or not ?

Please let me know whether newly inserted Sub section (1A) is applicable for Financial year 2007-08 i.e ., AY 2008-09 or FY 2008-09 and AY 2009-10 as it is said that it is effective 1-4-2008. It is not spelt clearly that whetehr it is FY or AY. This kind of confusion arises in my mind always as to the applicable FY and AY.

Please let me know whether newly inserted Sub section (1A) is applicable for Financial year 2007-08 i.e ., AY 2008-09 or FY 2008-09 and AY 2009-10 as it is said that it is effective 1-4-2008. It is not spelt clearly that whetehr it is FY or AY. This kind of confusion arises in my mind always as to the applicable FY and AY.