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Income tax query

MUKESH PAREEK (service) (64 Points)

09 January 2012

Dear all,

We have purchase some packing material from one of our vendor but when this consignment arrive

at our end we found that 10% goods are in bad condition due to some dusting marks. So we

dicided with our vendor that we will clean these dusting mark in our factory and will raise a debit

note to you as a shorting charges.

i want to know that any service tax liable on this shorting charges.

Pls.confirm

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2 Replies

CA.kaya (Chartered accountant) (3990 Points)
Replied 09 January 2012

Deduction for house loan /installment available up to Rs.100000 /-
the limit of one lac as above is total limit u/s 80C for all type of savings ,plus section 80CCC(pension policy) plus u/s 80CCD.Means the aggregate amount of deduction under above referred sections can not exceed Rs. 1,00,000.
the payment of loan should be made towards cost of purchase/construction of new residential house property.
The house property income should be assessable in the hand of asseessee in simple term assessee should be the owner of the house property.
The payment should not be for addition or alteration to,or renovation or repair of house property done after completion of house.
Completion of house means

completion certificate in respect of the house property by the authority competent to issue such certificate or
house property or part has been occupied by the assessee or any other person on behalf of assessee or
has been let out;

Housing loan for more than one house can also be claimed.
All the benefit of tax u/s 80 c will reversed if house property is sold with 5 year from purchase of house property
The tax benefit under section 80C is available on residential house property only and not available on commercial house property.
Loan should be taken from Specified institutions/deptt only given below

Central or State Government
any Bank including co-operative bank
LIC or National Housing Bank
public company formed and registered in India or co-operative society with main object to provide long term finance for construction purchase of houses in India.
Assessee Employer if public company or public sector company or university established by law or a college affiliated to such university or local authority or co-operative society.

The benefit is available only to Individual assessee and to HUF assessee.
The above benefit is available even assessee already has another house property.
The benefit is available on payment basis ,no matter to which year payment is relates to or payment overdue or not.
From total amount of installment paid of house loan reduce amount availed under deduction section 24.(INTEREST)
The Benefit under this section is available whether residential house property is rented or self occupied,but it should be completed as define above by end of the previous year in which loan is repaid.
Pre EMI are also eligible for deduction if house property is completed by the end of previous year.
Stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee is also eligible for deduction under this section even assessee has not taken any loan .
There is no requirement that for loan ,house property should be mortgaged to the institution from which the loan has been taken ,but it should be used for the purpose of purchase /construction of house property.

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Francis Mtambo (Student) (24 Points)
Replied 09 January 2012

I undestand dividend from an India company is exempt from tax. What should be the treatment of "gross dividend from an Indian firm" when assessing a firm. I though the exemption assumed that the dividend received would be net and that tax had already been deducted by the dividend paying company?

Should it be treated the same as any dividend?

Please help. I need to apply your judgement on an assignment problem I am working.

Urgency: Very high.

question:

Kwality Electronics Ltd. Furnishes you the following information for the assessment year 2008-09, 2009-10, and 2010-11 for advice as regards set off and carry forward of losses:-

2008-09 2009-10 2010-11

Interest on debentures 20000 25000 15000

Dividend from Indian company(gross) 18000 45000 25000

Income from house property(computed) 20000 20000 -20000

Profits or losses from business before depreciation

-10000 30000 23000

Depreciation 8000 10000 14000

Profits or losses on sale of securities(long term)

9000 -15000 10000

Speculation profits or losses 50000 -25000 15000

You are required to compute gross total income of the company for the assessment year 2008-09, 2009-10 and 2010-11.