Home/Questions/Page 3

Taxchopal Latest Questions

Ramesh Sharma
Enlightened
Asked: In:

  1. CA Dipali Bhatia Beginner

    An executive director is the full-time working director of the company. They look after the affairs of the company and have a higher responsibility towards the company. A non-executive director is a non-working director and is not involved in the everyday working of the company. They might participaRead more

    An executive director is the full-time working director of the company. They look after the affairs of the company and have a higher responsibility towards the company.

    A non-executive director is a non-working director and is not involved in the everyday working of the company. They might participate in the planning or policy-making process.

    See less
    • 1
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    A vendor registered under the MSMED Act, 2006 is called an MSME vendor. There are three categories of vendors in MSMED act which are based on their investment and turnover. Micro manufacturing and services units- Rs. 1 Crore of investment in plant and machinery or equipment and Rs 5 Crore of turnoveRead more

    A vendor registered under the MSMED Act, 2006 is called an MSME vendor. There are three categories of vendors in MSMED act which are based on their investment and turnover.

    1. Micro manufacturing and services units- Rs. 1 Crore of investment in plant and machinery or equipment and Rs 5 Crore of turnover.
    2. Small manufacturing and services units- Rs. 10 Crore of investment investment in plant and machinery or equipment and Rs 50 Crore of turnover.
    3. Medium manufacturing and services units- Rs. 50 Crore of investment in plant and machinery or equipment and Rs. 250 Crore of turnover.
    See less
    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    No, SAI is not considered a local authority under the Income Tax Act. As per Section 10(20) of the Income Tax Act, a local authority includes:✅ Panchayats under Article 243(d) of the Constitution.✅ Municipalities under Article 243P.✅ Municipal Committees, District Boards, or similar authorities respRead more

    No, SAI is not considered a local authority under the Income Tax Act.

    As per Section 10(20) of the Income Tax Act, a local authority includes:
    ✅ Panchayats under Article 243(d) of the Constitution.
    ✅ Municipalities under Article 243P.
    ✅ Municipal Committees, District Boards, or similar authorities responsible for local governance and civic functions.

    Hence, SAI is an Autonomous Body with No Local Governance Role and neither has any Statutory Authority for Local Self-Governance. It operates under the supervision of the Ministry of Youth Affairs & Sports, Government of India.

    See less
    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    If you are purchasing ready-made T-shirts with your company logo printed on them, it is treated as a purchase of goods. No TDS is required under Section 194C (TDS on contracts) or Section 194J (TDS on professional services). GST might apply, but TDS is not applicable under the Income Tax Act.

    • If you are purchasing ready-made T-shirts with your company logo printed on them, it is treated as a purchase of goods.
    • No TDS is required under Section 194C (TDS on contracts) or Section 194J (TDS on professional services).
    • GST might apply, but TDS is not applicable under the Income Tax Act.
    See less
    • 0
admin
Beginner
Asked: In:

  1. sharmas89 Teacher

    The TDS rate on software subscription charges is 2% as per section 194J Fee for technical services.

    The TDS rate on software subscription charges is 2% as per section 194J Fee for technical services.

    See less
    • 0
Ramesh Kumar
Beginner
Asked: In:

  1. CA Vishnu Ram Enlightened

    What is allowed  Cash Payment-up to INR 10,000 Cash receipt- below to INR 2 Lakhs (up to 20,000 for Loan and Advance) Cash Payment of Loan/advance--below 20,000   Now let's discuss the complete provision  Section 40A(3) and Section 43 – Cash Payment Section 269SS and Section 269ST – Cash ReceipRead more

    What is allowed 

    1. Cash Payment-up to INR 10,000
    2. Cash receipt- below to INR 2 Lakhs (up to 20,000 for Loan and Advance)
    3. Cash Payment of Loan/advance–below 20,000

     

    Now let’s discuss the complete provision 

    1. Section 40A(3) and Section 43 – Cash Payment
    2. Section 269SS and Section 269ST – Cash Receipts
    3. Section 269T – Repayment of Certain Loans / Deposits

    1. Section 40A(3)

    Cash Payment

    • Payment for any expenditure of over Rs.10,000 is made in cash, then the expenditure will be disallowed.

    Exemption:

    • Payment though banking channels like debit card, account transfer, cheque or demand draft, digital payments.

     

    Section 269ST

    Cash receipt limit- Receipt of cash amount of Rs 2 Lakh or more not allowed

    • In aggregate from a person in a day; or
    • In respect of a single transaction; or
    • In respect of transactions relating to one event or occasion from a person.

    Exemption:

    • On cash received through an Account Payee Cheque/Draft or through a bank account/post office.
    • To Government, any banking company, post office savings bank or co-operative bank.
    • To such other persons or class of persons or receipts, which the Central Government may specify.

    Penalty under Section 269ST

    • Equal to the amount of receipt is payable.

     Section 269SS

    Cash receipt limit

    • Receipt of cash amount of more than Rs 20,000 not allowed from Loan/Deposit/advance

    Exemption

    • Up to INR 20,000
    • From Government;
    • From any banking company, post office saving bank or co-operative bank;
    • From ny corporation established by a Central, State or Provincial Act
    • From any Government company as defined in section 2(45) of the Companies Act, 2013
    • From an institution, association or body or class of institutions, associations or bodies notified by Central Government in the official gazette.
    • If both the person, have agricultural income and do not have any taxable income then section 269SS will not apply.

    Penalty under Section 269SS

    Equal to the amount of loan or deposit or specified sum accepted.

    Section 269T

    • Repayment of Loans / Deposits with Interest (in his name or jointly with another person)- INR 20,000 or more not allowed otherwise than by an account payee cheque or account payee bank draft
    • Applicable to any branch of a banking company or a co-operative society, firm or another person

    Exemption:

    When the loan is repaid, or deposit taken or accepted from below mentioned person:

    1. Below to INR 20,000
    2. Government;
    3. Any banking company, post office saving bank or co-operative bank;
    4. Any corporation established by a Central, State or Provincial Act
    5. Any Government company as defined sec 2(45) of the Companies Act, 2013
    6. An institution, association or body or class of institutions, associations or bodies notified by Central Government in the official gazette.

    Penalty under Section 269T

    Equal to the amount of loan or deposit repaid is payable.

     

     

     

     

    See less
    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    Yes, TDS @10% shall be deducted from the membership fee U/s 194J. Membership fees collected by an association usually include access to managerial, technical, and consultancy services, reflecting the benefits provided to members. Consequently, such fees are subject to TDS at 10% under Section 194J.Read more

    Yes, TDS @10% shall be deducted from the membership fee U/s 194J.

    Membership fees collected by an association usually include access to managerial, technical, and consultancy services, reflecting the benefits provided to members. Consequently, such fees are subject to TDS at 10% under Section 194J.

    Exemption: where the amount of such sum or, the aggregate of the amounts of such sums credited or paid during the financial year does not exceed by INR 30000.

    As per Section 194J, professional fee means:

    (a) “professional services” means services rendered by a person in the course of carrying on legal, medical, engineering or architectural professions or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes of section 44AA or of this section;

     (b) “fees for technical services” means rendering of any managerial, technical or consultancy services

    See less
    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Manish Kumar Gupta Enlightened
    This answer was edited.

    TDS shall be deducted under section 194J@10% if the payment exceeds the threshold limit i.e. INR 30000 on certification charges like ISO, Great Place of Work, Best Coach, etc. Here is the detailed analysis of sec 194 J   TDS under section 194J is deducted on payments exceeding the threshold limRead more

    TDS shall be deducted under section 194J@10% if the payment exceeds the threshold limit i.e. INR 30000 on certification charges like ISO, Great Place of Work, Best Coach, etc.

    Here is the detailed analysis of sec 194 J

     

    TDS under section 194J is deducted on payments exceeding the threshold limit for below payments.

    Type of Payments Rate of tax deduction Threshold Limit
    Technical service 2% Rs. 30,000
    Payment of royalty for sale, distribution or exhibition of cinematographic films. 2% Rs. 30,000
    Other Royalty 10% Rs. 30,000
    Professional Services 10% Rs. 30,000
    Non-compete fees or fees paid not to share any technical knowledge or know-how 10% Rs. 30,000
    Payments made by the company to directors by way of fees, commissions or remuneration 10% Nil

     

    Professional services include following services:

    • Legal
    • Medical
    • Engineering
    • Architectural
    • Accountancy
    • Technical consultancy
    • Interior decoration
    • Advertising
    • Film artist
    • Company secretary
    • Authorised representatives
    • Profession of information technology
    • Sportspersons
    • Commentators
    • Event managers
    • Anchors
    • Umpires and referees
    • Physiotherapists
    • Coaches and trainers, team physicians, and sports columnists

     

    Fees for technical services include the following payments:

     

    • Services that involve technical expertise or expertise in technology.
    • Managerial services and management of the client’s business.
    • Consultancy services and business advisory services.

    Note: Technical service does not include services provided by machines or robots.

    Royalty means the payment made for:

    • Transfer of rights or usage of an invention, model, design, trademark, patent, etc.
    • Use of patents, inventions, designs, etc.
    • Provide any information related to using an invention, patent, formula, etc.
    • Transfer of rights related to scientific findings, literary work, films or videotapes for radio broadcasting but does not include consideration for the sale, exhibition, or distribution of cinematographic films.
    • Providing any information related to technical, industrial, commercial or scientific knowledge, experience or skill

     

    Non-compete fees include the payment made for an agreement for not sharing any license, patent, trademark, franchise, know-how, commercial or business rights, or information to any other person for processing, manufacture, or provisional service.

    Thanks

     

    See less
    • 0
girishgadiya108@gmail.com
Beginner
Asked: In:

  1. CA Manish Kumar Gupta Enlightened

    Hi, An elevator is treated as a part of the building. An elevator is an integral part of the building and doesn't have a separate identity i.e it cannot be sold as individual peace. It is designed and assembled as per the requirement of a building which makes it an integral part of the building. WeRead more

    Hi,

    An elevator is treated as a part of the building.

    An elevator is an integral part of the building and doesn’t have a separate identity i.e it cannot be sold as individual peace. It is designed and assembled as per the requirement of a building which makes it an integral part of the building.

    We can refer to the explanation of section 17 (5) of the CGST Act as  the expression “plant and machinery” means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes-

    (i) land, building or any other civil structures;

    (ii) telecommunication towers; and

    (iii) pipelines laid outside the factory premises.

    Section 17(5)(d) does not allow to take ITC on goods or services or both received by a taxable person for the construction of an immovable property.

    See less
    • 0
girishgadiya108@gmail.com
Beginner
Asked: In:

  1. CA Manish Kumar Gupta Enlightened

    Yes, ITC is allowed in the Air conditioner subject to the condition that it is not accounted as Land & Building and used in the course or furtherance of the business. Assessee should disclose it as Plant and Machinery. ITC is not allowed on immovable property as per section 17(5)(d).  

    Yes,

    ITC is allowed in the Air conditioner subject to the condition that it is not accounted as Land & Building and used in the course or furtherance of the business. Assessee should disclose it as Plant and Machinery.

    ITC is not allowed on immovable property as per section 17(5)(d).

     

    See less
    • 0
Load More Questions