26 October 2009
Dear Friends I am a Employee of Reliance Industries Ltd Petrolium Outlet. We had a contarct between RIL & US to supply Petrol & Diesel, RIL suppose to supply the products at our Outlet after Advance Payment of Product Price including Freight. We haven't deducted any TDS on Frieghtand we haven't included that Freight Cost in our Purchase cost while preparing Balance Sheet. Now the case got under Scrutiny and the ITO have disallowed such Expenses which arising a lot of TAx with Penalty, Kindly look this matter and show some tips to avoid this tax with some accurate cases.
27 October 2009
Dear Mr. Santosh if you want to avoid the tax burden then you have to show it as reimbursment to reliance. Further took a invoivce of freight for same amount from reliance which has been raised on them by third party. Futher you tell me where you have shown the freight expenses in your P&L accountas you are specifying that purchase cost does not include freight amount.
CAclubindia
