What are the income tax implecation while converting ECBs into equity shares?

Hello,

The company (A Ltd.) has only two staff on deputation from other group company (B Ltd.). There are no other staff in A Ltd. B Ltd. raises a debit note on A Ltd. for travelling expenses, staff welfare expenses incurred by staff on deputation while on duty. Whether FBT is to be paid by A Ltd. or B Ltd.?

If the executives of the company are provided re-imbursements of following as part of their salary:
1)Sales promotion expenses.
2)Books and Periodicals.
3)Conveyance.
4)Telephone.
5)Petrol Expenses.
6)Medical Expenses.
So in such cases fringe benefits would be valued at 100% or 20%?
Also give me reference to the section?

Will it covered under Sec115B(1) or under Sec115B(2)i.e as Deemed Fringe Benefits.

Please solve my query urgently.

Thank You.

One of our client in SEZ wishes to hire a a person residing in U.K on salary basis to look after their marketing activity out there. Please advise whether tax is to be deducted on payments to be made from India.His residential status in India would be non resident.

As per Section 145A the purchases, sales and inventories to be valued inclusive of taxes, duties, cess, etc incurred or paid. VAT introduecd during the FY 2006-07. Sales effected out of opening stock also and that stock is on declaration of forms or exempted goods. Is the closing stock to be valued with VAT on such stock as well as the opening stock also. Is Vat receivable only to be added in closing stock or the actual VAT paid on closing stock should be added. Further as per new ITR in the P& L a/c the Purchase, sales, closing stock etc to be inclusive. Can we do adjustment in computation only and the net effect can be shown in adjustment. If this method is followed then will it not be treated as defective return as the P& L not prepared as required in the form.

Regards
R K Dhandia

As per Section 145A the purchases, sales and inventories to be valued inclusive of taxes, duties, cess, etc incurred or paid. VAT introduecd during the FY 2006-07. Sales effected out of opening stock also and that stock is on declaration of forms or exempted goods. Is the closing stock to be valued with VAT on such stock as well as the opening stock also. Is Vat receivable only to be added in closing stock or the actual VAT paid on closing stock should be added. Further as per new ITR in the P& L a/c the Purchase, sales, closing stock etc to be inclusive. Can we do adjustment in computation only and the net effect can be shown in adjustment. If this method is followed then will it not be treated as defective return as the P& L not prepared as required in the form.

Regards
R K Dhandia

hi friends
an individual had purchased two residential house property 10 years back, which were adjacent to each other.He combined the properties and started using the same as a single house with common entrance, living room, etc. He had purchased them vide two separate agreements. He now sold them vide two separate sale deeds and has invested the entire proceeds in a single house property. Can he claim exemption under section 54 in respect of long term capital gain arising on sale of old two houses.

Three persons in their individual capacity entered into a deal as detailed below:

One landlady entered into an agreement with husband for development of her plot of land bought at Rs. 30 lacs sharing profit 40:60.
40% wife & 60% Husband.

Husband developed the same and sold one floor to their son for Rs. 50 lacs.

Now the total project is being sold at Rs.3.00 crores.

They will get :
Wife Rs.90 lacs
Husband Rs.135 lacs
Son rs. 75 lcs

Whether they will come under Tax Audit?

wheather future&option treated as bussiness income or capital gain