Dear Sir,
A Prop firm raised supplementary invoices in the month of april may 2008, for increase in the prices of steels, the original sales were made in the financial year 2007-2008. My query is whether we can make provision for income related to supplementary invoices in the financial year 2007-08. what is the tax implications whether this income is taxable in the ass. year 2008-09 or in nxt assessement year. As per accounting standards issued by ICAI AS -4 it is an event occuring after the balance sheet date according to that we have to make adjustments in assets and liablilites in the balance sheet for the f.y. 2007-08.
Please resolve my query it ll highly obliged
1. can v make changes in assets & liabilities in the balance sheet as at 31.03.2008 if yes should we make provision for excise receivable as well as per AS-4
2. what are the tax implications whether this income will be taxable in ass. year 2008-09 as per mercantile system of accounting u/s 145
3. can there be any implications under punjab vat act.
Thanks & Regards
CA Rajpreet Singh
2.

Dear Experts,

One of our client paid TDS excess & professional tax short & later they are all this excess or short paid taxes trf. to miscellaneous expenses & claim as expenditure.

I just want know whether this type of expenses are allow or not while computing the total income as per IT Act? if yes or no then what section?

They are also written off certain advances which is not recoverable & trf. to Misc.Expenses.

Pls.reply ASAP.

Regards,
Prakash Jasani

When someone, who maintains accounts on cash basis, receives a TDS on 31st March on professional fees, should the amount of TDS alone be considered as income for the current year and the rest of it next year or the entire amount shown as income for that year.
Say
Income - Rs.1,00,000/-
TDS on above - Rs.10,000/-
TDS deducted on 31.03.2008
Accounts - Cash Basis
Can Rs.10,000/- be taken as income for this year and Rs.90,000/- for next year OR
SHOULD RS.1,00,000/- BE SHOWN AS INCOME IN CURRENT YEAR

When someone, who maintains accounts on cash basis, receives a TDS on 31st March on professional fees, should the amount of TDS alone be considered as income for the current year and the rest of it next year or the entire amount shown as income for that year.
Say
Income - Rs.1,00,000/-
TDS on above - Rs.10,000/-
TDS deducted on 31.03.2008
Accounts - Cash Basis
Can Rs.10,000/- be taken as income for this year and Rs.90,000/- for next year OR
SHOULD RS.1,00,000/- BE SHOWN AS INCOME IN CURRENT YEAR

IF WE PAID RS 16000 TO A TRANSPORTER FOR TRANSPORTATION CHARGES IN APRIL, & RS 18000 IN JULY AND RS 18500 IN OCTOBER,
IS TDS IS DEDUCTED OR NOT?

IF WE PAID RS 16000 TO A TRANSPORTER FOR TRANSPORTATION CHARGES IN APRIL, & RS 18000 IN JULY AND RS 18500 IN OCTOBER,
IS TDS IS DEDUCTED OR NOT?

that as per will deed of my father the ancestral house is shared between all 5 brothers equally. that the said property was registered in our favour through gift deed in 1998. that in 2006 we constructed commercial and residential complex and i sold my share of flat in 2008. whether i am liable to short term capital gain or long term capital gain. how to computer the same.

Will tds be deducted or not on the service tax element included in the bill.Circular 4/2008 of CBDT deals only about rent what about other items on which service tax is levied

Waiting for the reply

CA.Girish Kumar Mittal

Should I consider the service tax for the calculation of TDS? Please solve by the example of TDS On contract payment.

A specific section of Inome tax act excluded co-operative societies(bank) from the surcharge on income tax. But in case of FBT co-opertive societies are not seperatly defined in Finance Act 2008.

Surcharge on FBT is governed by the 4th proviso of section 2(3) of the Finance Act, 2008 that reads as follows:

"Provided also that in respect of any fringe benefits chargeable to tax under section 115WA of the Income-tax Act, income-tax computed under this sub-section shall be increased by a surcharge, for purposes of the Union, calculated,—
(a) in the case of every association of persons and body of individuals, whether incorporated or not, at the rate of ten per cent of income-tax where the fringe benefits exceed ten lakh rupees;

(b) in the case of every firm, artificial juridical person referred to in sub-clause (v) of clause (a) of section 115W of the Income-tax Act, and domestic company, at the rate of ten per cent of such income-tax;

(c) in the case of every company, other than a domestic company, at the rate of two and one-half per cent of such income-tax."

If we refer some books on FBT and Income tax and some programmes calculating income tax/FBT liability they indicates no surcharge on FBT for Co-operative banks. But if we read the above extract of Finance Act its plain menaning is as Co-operative societies (Banks) are assessed as Artificial Judidcial Person they are chargeable to surcharge of 10% on FBT.

I am working in a co-opertiave bank. One assessment of the Asst year 2006-07 is already comleleted and AO had not charged any surcharge on FBT.


PLease clarify wether surcharge on FBT is capplicable to Co-operative banks or not.
Waiting for reply.