Ours is a indian company registered under companies act, has a joint venture with Saudi Arabian Company with a 20% Share capital of Saudi Arabian company. The indian company receives net dividend regularly from the saudi arabian company for the share of 20%. The net dividend crediting to our bank account after deduction of TDS and tax on total profits of saudi.arabian company. Example




Saudi Arabian Company earned a profit before taxes 1000000




Tax at saudi arabia 300000




Profit after Tax 700000




Saudi Arabian Company declared dividend 500000




Dividend of Indian Company @ 20% 100000




Less Tax or TDS @ 20% paid by saudi arabian co. 60000




Net dividend distributed to indian company by saudi co. 40000




Now how to account the entries in indian company and what is the tax treatment for indian company. The indian compay incurring operational losses, but after considering the dividend received from the saudi arabian company, the indian company gaining some net profits. Suppose in a financial year after receiving the dividend of Rs 100000/- the indian company gained taxable income of Rs 20000/-.




Kindly advise how to account the entries in books and what is the tax treatment and how do claim the deduction of tax Rs 60000/- by the saudi arabian company ?




Regards




S Anjaneyulu

does icai help us in choosing firms as said in the following url of icai

http://www.icai.org/icairoot/publications/complimentary/cajournal_aug02/p198-202.pdf

Can be service Tax Charged at Lower Rate?

A firm is authorised service centre of LG AC. It provide repair and maintenance to all those customer which have purchased AC and falls under guarantee period, on behalf of the company. It receive certain fixed monthly ckarges from the company for this. It also do its on repair and maintenance work of all AC which is not under guarantee period or otherwise. It got registered with service tax department last year and paid service tax though its toal receipt was much less than Rs 4 lac. This year the firm did not pay any service tax nor it collected from the LG Company nor from custormer in the impression that the limit has been increased to Rs 8 lac and it is entitled for the basic exemption limit. Now when it submitted a letter of surrender of its registration with service tax department, they informed that this firm is not entitled for basic exemption due to some circular i.e. the Authorised Service Centre are not entitled for basic exemption. Please clarify the correct legal position with circular if any.

R K Dhandia

Is FBT applicable on expenses incurred by the directors of the company?
Will your answer differ on whether the director is executive or non executive or whether he is paid salary or proffessional fees?

some one made a partnership firm with name as "ABC Pvt Ltd.", He had received Pan as well as sales tax registeration for the same name.

As adding Ltd word without forming co is violation of co law, so now what should be the course of action now.

can he change the name and submit an application for change in PAN data and sales tax reg. Data? or convert the firm to PVT LTD company or Discard the firm???

WHILE ACCOUNTING ASSET ITEMS BELOW RS. 5000
IS THERE ANY STATUTORY REQUIREMENT TO TREAT THESE ITEMS AS ASSET AS WE CAN SET OFF THE ENTIRE AMOUNT BELOW 5000/= IN THE SAME FINANCIAL YEAR AS EXPENSE. WHEN WE ARE ACCOUNTING SMALL FAN, PHONE OR OTHER SMALL ITEM IS IT NECESSARY TO TREAT THESE AS ASSETS AS WE ARE NOT CLAIMING DEPRECTION

Whether Gratuity and Leave Salary becoming due on the death of an employee is taxable in the hands of nominee? Please explain with reasons.

Dear All,

As per rule 26 of Income Tax Rules, the SBI's TTB rates to be taken for converting foreign currency.

Where to find SBI's TTB rate without going SBI (Foreign Branch) daily for getting the same.

Please reply

Thanks
AJ

TAN Number is Compulsory in case of Comancy