M.Giridhar (tax consultant) (49 Points)
04 August 2008Q1.Assessee, a firm, is an associate of HDFC Bank receiving a commission after TDS deduction u/s 194H. Turnover is Rs.12 lacs. Is it comes under the compulsory audit u/s44AB (turnover exceeds 10 lacs)? if not is Sec 44AD applies? clarify?
Q2. Cost inflation index for the financial year 2008-2009 for calculation capital gains ?
CA RAMESH KUMAR AHUJA
(CA, DISA, LLB)
(5452 Points)
Replied 05 August 2008
The gross receipts being less than 40lacs, Tax Audit in the instant case is not required. It does not appear to be a case of section 44AD as the firm has received commission only.
Cost Inflation Index for FY 2008-09 has not been notified till now.
An employee of a foreign enterprise is rendering services in Indian Branch. He is in India for less than 182 days. His salary is credited to his account outside India by the Head office. No remittance is made from Indian company with respect to his salary i.e., the profit and loss account of the Indian branch is not debited with his part of salary.
Is his income with respect to services rendered in India is taxable In India??
Kindly answer the query with reasonable explanations and sections.
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