Anna (Director) (29 Points)
27 November 2011Hello! Could anybody help me by answering, please? I have Pvt Ltd Company, it was incorporated 1,5 years ago. During this time the company didn't have any income. It had pre-operation expenditures only. Turnover was less than 1 Crore. Do any taxes applecable for such company?
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 27 November 2011
On one side u say it didnt hve any income and in next line u say it has turnover but less den 1 crore... sir pls decide properly abt dis so that cci embers can an ur querry properly....
Anna
(Director)
(29 Points)
Replied 27 November 2011
Sorry, for it's mistake. It had pre-operational expenditures less than 1 crore. Nothing else.
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 27 November 2011
income tax is charged on income and it has to be an income as per sec 2 (24) otherwise any other thing is not txable at all under income tax act ....
Hope ur querry is solved.
Anna
(Director)
(29 Points)
Replied 27 November 2011
Thanks for your reply, Sir. TDS and PT are also not applicable for company in my case?
Kamal
(article)
(165 Points)
Replied 27 November 2011
Anna
(Director)
(29 Points)
Replied 27 November 2011
TDS - i mean company pays rent for office which exceed the limit of 180000 RS/per year. As company without income do we have to pay TDS? If yes, so how often we have to pay it?
Priya Mehta
(CA & CS FINAL Article Assiatant)
(219 Points)
Replied 27 November 2011
Yes, it doesnt matter wther ur company has any income or not for deducting tds as tds provisdion are attracted if exp limit as mentioned under sec 194 is exceeded.
so in ur case u have to deduct tds n credit it to govt a/c otherwise u will be deemed to be assessee in dedfault under sec 201(1A) and interest under said sec will be applicable when u actually deposit.
Anna
(Director)
(29 Points)
Replied 27 November 2011
Priya Mehta, thanks so much for your reply. One thing is not clear for me yet: yes, i understand now that we have to pay TDS tax and it is applicable for rent paid exceeded 180000 Rs. In current financial year we have already paid for rent 130000 RS. Should we strart to pay TDS when it will actually exceed the limit or we have to pay it immediately?
Anna
(Director)
(29 Points)
Replied 27 November 2011
and what is about th professional tax? do we have to pay it or it is applicable for company's income only?
phanindra
(Senior Associate Ford Motors)
(39 Points)
Replied 28 November 2011
Anna, if you aware that you'r limit is going to be exceeded for the financial year we have to deduct from the first installment itself. In your case as per the above stated facts it will exceed the stipulated limits for the financial year. Good pracitse is deduct and remit immediately as of now.
With regards to Professional tax applicability it has nothing to do with the turnover or income. Also the provisions varies from state to state. You have not cited in your case which state your company is situated. Hope this is clear.
phanindra
(Senior Associate Ford Motors)
(39 Points)
Replied 28 November 2011
Anna, if you aware that you'r limit is going to be exceeded for the financial year we have to deduct from the first installment itself. In your case as per the above stated facts it will exceed the stipulated limits for the financial year. Good pracitse is deduct and remit immediately as of now.
With regards to Professional tax applicability it has nothing to do with the turnover or income. Also the provisions varies from state to state. You have not cited in your case which state your company is situated. Hope this is clear.
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