FACTS OF THE CASE

H Pvt Limited is a company holding 99% shares in S Pvt Limited. Balance 1% shares are held by individual shareholders who also hold shares in H Pvt Limited.
S Pvt Limited wishes to declare dividend of Rs.10,000.00 during the Financial year ending 31.3.08 and resultant dividend tax u/s 115O of the Income Tax Act will be Rs.1402.00.
H Pvt Limited will receive Rs.99,000.00 from S Pvt Limited as its share of dividend.
If H Pvt Limited wishes to declare dividend of Rs.1.00,000.00, dividend tax of Rs.14,025.00 will be levied.

QUERY

(i) Since the dividend income of Rs. 99,000.00 received by H Private Limited forms part of total income from which dividend is declared and dividend tax is paid , whether Rs.99,000.00 suffers double incidence of dividend tax.
(ii) If the answer is in the affirmative whether any relief is available.
(iii) Whether it is possible to transfer H Pvt Limited’s holding of 99% in S Pvt Limited to individual shareholders. In the event of such transfer what will be the mode of valuation of such shares.
(iv) In the event of above transfer whether the difference between fair value and face value will be treated as deemed income in the hands of shareholders.



CA Sumit Sarkar

Membership No.55816

A factory is producing some excisable goods. It is billing in two manners a) for customers availing modvat credit and b) for customers not availing modvat credit.
'A' 'B'
Basic price 10000 10000
Excise duty @ 16% 1600 1600
E. cess & SHED @ 3% 48 48
_______ _______
Sub Total 11648 11648
VAT @ 4% 466 402
_______ _______
Total 12114 12050
Less :- Cenvat 1600
_______ _______
Net payable 12114 10450

In situation 'A' - VAT is charged on total of Basic price & BED whereas in situation 'B' VAT is charged on Basic price & E.cess as the entire duty has been refunded to the customer. Whether the treatment is correct ?

hi.
can anybosy suggest me what are criteria of revenue sharing basis to claim the service tax exemtion under this claue.

Sir,

We have shown all expenses ie air ticket, hotel, lunch, dinner, outstation conveyance etc. under the head Tour & travelling and paid FBT @5% on all Expenses. I would like to know:-

1. Is it correct ?
2. whcih type of boarding & loading expenses taxable in FBT. What is the % of Taxable of Boarding & lodging exp.

Please advise us.
Regards,

Baljinder Singh

hello friends,
could u pls. send me the tax implications of construction contract:-
1.treatment of Income and expenses of construction contract.
2.sales tax impliction of such contracts.
3.service tax implication as also input credit availment by the contractor.
4.TDS on the contract and sub-contract.

my e-mail is ash_ok2002@yahoo.com

thanking you,
ashok

I left India and came to Abu Dhabi,UAE for a job on 18th November 2007.So as per IT Act,1961 I am Resident for F.Y.2007-08.A.Y. 2008-09.
So whether I have to pay tax on the salary I earned in UAE from 19th November2007 to 31st March 2008?
Whether there is any Double taxation Treaty bet the countries so that I do not have to pay tax?
Please guide me.
Thanking you
Rajesh H. Mantri.

Whether the investment in Mutual Funds are taxed after maturity ?? OR whether Deferred tax will be applicable MF ??

Do we need to deduct TDS on payment to government...specifically sponsorship to indian navy for new year ball ?

Dear Sir/Madam,
A company takes service of a electrician in it's premises and electrician is not registered under ESI.Whether ESI is deductible by the company being immediate employer,If yes at what amount ESI should be deducted when material is also used by the electrician.(Electrician is a firm)

Please reply soon and refer relevant sections/provisions.

Thank you,
Sachin garg

Dear Sir/Madam,
A company paid participation fees for Pakistan Book Fair amount is USD550.Now I want to ask whether TDS should be deducted by the company u/s 195 or under any other section?

Please reply soon and give the relevant provisions justifying your view.

Thank you.