Taxation queries [Resolved] [548]

FBT is not a tax on Income

FBT is a tax on expenses

Is FBT applicable when some one is not claiming those expenses at all?

Two scenarios:

01. When a company's total income is exempted, the company can prepare memo of Income by disallowing the expenses subject to FBT and arrive at profit / loss. Suich profit is escalated to the extent of expenses subject to FBT. However, the profit is not taxable, since exempted.

02. When a company's Carry Forward Loss is huge and by not claming expenses subject to FBT the profit can be arrived.

Since this action doesn't have any impact on Book Profit, the status of MAT liability may not undergo any alteration.

Please clarify

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Yogesh Sachdeva 13 October 2008 at 15:23

Service Tax

Dear Sir(s),

Director's remuneration is paid in the form of :-

a) Sitting Fee

b) Fixed monthly Remuneration, and

b) Commission.

The directors do not raise any bill for such remuneration and the remuneration is calculated by the company under permissible limits given as per company law. Is there any service tax liability on the above under the Management or Business Consultants Services / Business Auxiliary Services?

Is the treatment same in case of Nominee / Independent Directors?

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Ram 05 October 2008 at 23:35

query regading imposition of penalty under VAT act

Dear sirs,
under the karnataka VAT Act a single day delay in filing of monthly retuns directs the VAT officers to levy 10% of penalty on tax amount by using the word "Shall".

we have a business in udupi and our monthly VAT tax for July 08 was of Rs 556000/-. we usually file the returns on 20th day of every month. on aug 08 ie the last date for filing vat retuns for July 08 there was a nationwide strike called by left parties. so we have filed returns on 21st day of aug 08. now after a month we have received a notice proposing penalty of 10% ie Rs 55600/- with seven days time to Show cause.

officer claims to have acted under law. is there any judgement/ cases were i can claim that penalty can be waived during unavoidable circumstances, even though the Act is strict about ts levy?.

Please reply at the earliest.

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R.Rajendran 30 September 2008 at 14:16

TAX FOR POWER OF ATTORNEY

Dear Sir,
We are 4 sons .Our parents are not alive.All the heirs of our family (4 sons) have decided to sell the house belonging to our mother by writing Power of Attorney in my name and then share the money.The house is likely to be sold for Rs. 15 lakhs.Each son will get a share of Rs.3.75 lakhs.Please reply my following queries:
1.Simply because POA is written in my name,
I am afraid I may be subjected to tax for Rs.15 lakhs. Will I be subjected to tax for Rs.15 lakhs?
2.What should I do so that I pay tax only for my share of money?

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Ananjan Mukherjee 29 September 2008 at 23:08

Income tax on selling shares

If I sell off some shares that I own, how is that income going to be treated? How will I be taxed?

Thank you,
Ananjan Mukherjee

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Ananjan Mukherjee 29 September 2008 at 23:06

Income of dependant spouse

If my wife is a housewife but has some income through investment interests, will I be taxed for that income? If I gift my wife some money which she invests on her name, would the interest earned be considered my income?

Thank you,
Ananjan Mukherjee

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