Non Compete Fees
This query is : Resolved
08 December 2009
Non Compete Fees received by a Promoter and M.D. of a Private Ltd. co. from incoming shareholder for non compiting the said business, for this he reduced his shareholding also, he entered in Non Compete Agreement with the incoming shareholder, can this non compete fees received is treated as capital receipt as per section 55(2)(a), but section 28(va) contradict the provision of section 55(2)(a)?
Please give any recent case laws related to this.
I'm waiting for the response from your side.
Thanks.
Please give any recent case laws related to this.
I'm waiting for the response from your side.
Thanks.
08 December 2009
There was a controversy about the taxability of the non-compete fee. The controversy was put to an end by the amendment to Section 28 of the Income-Tax Act made by Finance Act, 2002 w.e.f. April 1, 2003.
Under Section 28 (va), such non-compete fee is taxable as profits and gains of business or profession.
Under Section 28 (va), such non-compete fee is taxable as profits and gains of business or profession.
08 December 2009
It is profits and gains of business or profession. TDS is applicable under Section 194 J for making this kind of payment by the company.
08 December 2009
Agree with expert
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- Itr 1 processing
- Showing Gift from relative in ITR for this year
- Reporting Income under Section 44ADA
- ITR returnFY25-26
- ITR selection for salaries and capital gain less than L
- Share accounting-->fifo - capital gain - period as per fifo?
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR 2 Short Term gain & Long term gain
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
