1).Concept of MODVAT with example.
2).Concept of CENVAT with example.
3).Application of the above two in the practical matters.
4).Important points to be remembered while doing TAX AUDIT u/s 44AB.

Pleaase Send me understandable rply with proper example regaring consideration of turn over criteria for tax audit covered u/s 44AB.This is because Iam not clear about the wording of Income tax Act,1969.
1)Gross receipt
2)What things are included in turnover

Double Taxation Agreements on globle

The company is having only directors. there are no employees.Will the expenses incurred by director considered for FBT ?
Mention with provision,circular.....

Whether Gift received by some one (as permissible u/s. 56)is a Capital Receipt or an exempted Income?

One of my client has credited its P&L a/c with the amount of MAT credit as per AS 22.And while computing Book profit u/s 115JB he deducted this amount from the Profit as per P&L a/c(Below the line).I require some support (case Laws etc)for the treatment done by my client while computing book profit.

Hi All

Pls resolve my query and mail it to nitinkapoorca@gmail.com

My Query is that if a Company A situated in India is providing services to Company B in USA(New York)using the software manufactured by Company B. In a sense the company A in India is a debtor as well as creditor for Company B and vice Versa.

Now Company A in India has to pay withhoding Tax on payments made to Company B and since it is provising services it also recieves payments from Company B. The payments recieved in INDIA are much more than payments made to Company B.

QUERRY: Is there a possibility to knock off the payments receivable and payable between the companies to lessen the burden of withholding Tax???

Pls Reply

Letter of Credit(LC)is opened by the buyer in favour of the supplier for supply of goods, which ensures the payment to the supplier at the end of the period of LC.Since the money is not immediately received, the supplier discounts LC with bank and realise the money. The supplier pays LC discounting charges.

As per the terms agreed, the buyer reimburses the LC discounting charges to the supplier.

Queries:
1. The LC discounting charges reimbursed by the buyer is in the nature of interest. Is it correct?
Please clear the facts in terms of Circular: No. 65 [F. No. 275/97-ITJ], dated 2-9-1971
2. If it is correct, is it subject to TDS?
3. The buyer in his books of account does not show the Suppliers account in creditors but shows the LC account under acceptance creditors since the LC is opened in favour of the supplier? Is it correct?

With regard to claiming Deduction in respect of medical insurance premia under Section 80-D of the I.T Act, the Section provides, inter alia, that premium should be paid by any mode other than cash. Such condition of making payments by any mode other than cash is not prescribed for other purposes such as Deduction under Sec 80-C for LIC Premia etc. I would like to know what could be the intention in prescribing other than cash mode of payment. Is it to curb black money, if so, why similar condition is not prescribed in all Sections allowing Deductions.

In some book, author has given an opinion that disallowances u/s. 40(a)(ia)is applicable only on the amount (expnses) payable at the end of the year.
I would like to invite comments of seniors on this interpratation of the Jodhpur based author.