santhosh (CA) (636 Points)
28 September 2009Hi Friends
Our Client is a small Private Limited company!. It declared dividend for FY 2008-09.The company is liable to pay Dividend distribution tax of Rs 1087000/. But for the Financial Year 2008-09 they are getting a refund of Rs 1458000/-.
Now they are questioning whether they can set off this DDT with Income tax refund (just like FBT )
Explain with reference to any case laws if any
Thank You!
AMIT KAPOOR
(SELF EMPLOYED)
(491 Points)
Replied 28 September 2009
achha yaar mujhe ye batao ki ye kahan law me likha hai ki income tax payable can be set off from the refund of FBT please
CA. ANKUR JAIN
(CA.....)
(2800 Points)
Replied 28 September 2009
HELLOW SANTOSH ITS MY THINKINGN AND M NOT REFFERING ANY PROVISION AS M NOT AWARE,
AND NOW A QUESTION FOR YOU
PLS TELL ME THE SOURCE WHR U GOT U KNW THAT FBT PAYABLE CAN BE ADJSTED AGAINST INCOME TAX REFUND.
santhosh
(CA)
(636 Points)
Replied 28 September 2009
NO EXPLICIT PROVISION IN ACT BUT PRACTICALLY ALL CLIENTS DO THAT , i.e adjust FBT with IT Refund
CA. ANKUR JAIN
(CA.....)
(2800 Points)
Replied 28 September 2009
HOW WILL YOU SHOW THIS ADJUSTMENT IN RETURN FORM AS SCHEDULE " TTI" AND TAX TAX CALCULATION IS LINKED WID OTHERS AND THEY AUTOMATICALLY FILLED UP.
I MEAN TO SAY IN TAX COMPUTAION COLOUMN IN RETURN THERE IS NO OPTION LIKE THIS TO SET OFF REFUND AGAINST FBT PAYABLE
santhosh
(CA)
(636 Points)
Replied 28 September 2009
I agree in ITR we cant adjust ,but they dont pay FBT they explain this to AO during Assessment, and i have seen many cases where it is done like this and even department don t question!
CA. ANKUR JAIN
(CA.....)
(2800 Points)
Replied 28 September 2009
YOU MEAN TO SAY WE WILL FILE THE RETURN WID FBT PAYABLE AND INCOME TAX REFUND..
IN YOUR REFUND CALCULATION IN RETURN THE AMOUNT WILL BE BEFORE ADJUSTMENT OF FBT PAYABLE .
AND IF THERE IS NO ASSESSMENT ORDER THEN THEY WILL GIVE YOU THAT REFUND????????????
santhosh
(CA)
(636 Points)
Replied 28 September 2009
How for any assessee there will be at least summary assessment !. How can there be no assessement.
CA. ANKUR JAIN
(CA.....)
(2800 Points)
Replied 28 September 2009
OKKKKKKKEZZZZZZ YAR THANKS WEL FINALLY WE HAV ALSO PLANNED TO FILE THE RETURN OF ONE OF OUR CLIENT CO. LIKE THIS. i.e FBT PAYABLE AND IT refund.
Thanks yar
santhosh
(CA)
(636 Points)
Replied 28 September 2009
now at last i have given one idea, but not got answer for my question.............
Debashis Mandal
(Business & Tax Consultancy)
(341 Points)
Replied 28 September 2009
Dear Santhosh
your question is still pending - It is my personal openion that as this are related with same accounting year, setting of is possiable, but firstly u r to ask that companies ITO
Thanks
Debaashis
CAclubindia
