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Taxchopal Latest Questions

Ramesh Sharma
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    Resignation is also treated as retirement and section 10(10AA) provides certain exemptions from the amount of leave encashment. This section applies equally to a case of voluntary retirement on account of resignation. In the following manner it will be exempted: Resignation by Government Employee: TRead more

    Resignation is also treated as retirement and section 10(10AA) provides certain exemptions from the amount of leave encashment. This section applies equally to a case of voluntary retirement on account of resignation.

    In the following manner it will be exempted:

    Resignation by Government Employee:

    The full amount of leave encashment is exempted.

    Resignation by other employees:

    The least of below amount is exempted from income tax:

    1. Leave encashment actually received
    2. 10 months “average salary”
    3. Cash equivalent of unveiled leave (Maximum 30 days leave X Completed Year of service).
    4. Maximum Amount as specified by the Govt i.e. Rs. 3,00,000

    Here

    1. Salary” means “Basic + Dearness Allowance” including commission received if any based on a fixed percentage of turnover.
    2. “Average Salary” means the average salary drawn by the employee during the period of 10 months immediately preceding his retirement.

    One important thing is to be required to keep in mind that in the above case Maximum limit of Rs 300000 is cumulative means if the employee has availed the exemption of leave encashment received from any one or more employers, then the limit of Rs. 3,00,000 specified above shall be reduced by the amount of exemption availed earlier.

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    • 1
RAVINDRA DASHORE
Beginner
Asked: In:

  1. CA Vishnu Ram Enlightened
    This answer was edited.

    Hi, Services under heading Manufacturing services on physical inputs (goods) owned by others are covered under SAC Code 998821. This service code includes textile fiber manufacturing services, textile weaving services, textile finishing services, knitted and crocheted fabric manufacturing services,Read more

    Hi,

    Services under heading Manufacturing services on physical inputs (goods) owned by others are covered under SAC Code 998821. This service code includes textile fiber manufacturing services, textile weaving services, textile finishing services, knitted and crocheted fabric manufacturing services, made-up textile article manufacturing services, carpet and rug manufacturing services, cordage, rope, twine, and netting manufacturing services, and other textile manufacturing services.

    Following is the description of this code:

    Job Work for Textile and Apparel Manufacturing

    S.No. SAC Code Services
    1 SAC Code 998821 Textile manufacturing services

    Following is the list of job work GST Rate applicable thereon for your ready reference:

    Job Work GST Rate %
    Dyeing (Grey cloth to dyed cloth) 5
    Bleaching (Grey cloth to bleached cloth) 5
    Rotary Printing (All overprinting on dyed cloth) 5
     Raising Brushing and shearing (Removing shrinkage in cloth) 5
    Fabric Cutting (Fabric is cut in cloth bit) 18
     Chest Embroidery (Embroidery on cloth bit) 18
     Chest Printing (Printing on cloth bit)  18
    Sewing (Swing on cloth bit) 18
    Garment washing (washing of stitched garment ) 18
    Kaja/Buttoning (Kaja preparation or fixing button in the garment) 18
    Hand Embroidery (Embroidery on garments) 18
    Checking, ironing, and packing (Checking, ironing & Packaging of garments) 18
    Other Job Work 18

    In your case, GST on Chest Printing will be 18%.

    Regards.

     

     

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    • 5
Ramesh Sharma
Enlightened
Asked: In:

  1. Kirti Agarwal Beginner

    a) Uncommuted pension:- Under uncommuted pension, employees choose to receive a fixed amount of pension on monthly basis. and in Commuted pension, the employee received a lump sum amount as an advance of his total pension. This means he surrenders a portion of his pension say 50% and receives an advRead more

    a) Uncommuted pension:-

    Under uncommuted pension, employees choose to receive a fixed amount of pension on monthly basis. and in Commuted pension, the employee received a lump sum amount as an advance of his total pension. This means he surrenders a portion of his pension say 50% and receives an advance lumpsum amount this is called commuted pension. The pension may be fully or partly commuted.

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    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Manish Kumar Gupta Enlightened

    Hi, Under Defined-benefit Plan a defined sum of the amount is paid after the retirement of the employee when the employee becomes a pension member.  For this Employer and Employee choose to contributes to a pension fund for paying pension to its employees. It's called funded pension plan. It can alsRead more

    Hi,

    Under Defined-benefit Plan a defined sum of the amount is paid after the retirement of the employee when the employee becomes a pension member.  For this Employer and Employee choose to contributes to a pension fund for paying pension to its employees. It’s called funded pension plan. It can also be unfunded means the benefits are paid for by the employer by himself at the time of retirement.

    Under Defined-contribution Plan, An annuity is paid to the member of an investment scheme. The contribution is made by employee from his salary or by the employer into a pension fund. This pension fund works as an investment fund. At the time of retirement, the pension will be paid out from this fund’s return. Unlike to defined benefit plan, the annuity is not fixed and guaranteed. It may vary as per the performance of the pension plan.   

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    • 1
CA Sanjiv Kumar
Enlightened
Asked: In:

  1. CA Manish Kumar Gupta Enlightened

    Hi, The taxability of Pension depends on two factors. First Type of Pension and second type of Employee. The pension is taxable under the head of “Salary” in the hands of the receiver and in the year of receipt and tax is calculated in the following manner: Uncommuted pension i.e. periodical pensionRead more

    Hi,

    The taxability of Pension depends on two factors. First Type of Pension and second type of Employee. The pension is taxable under the head of “Salary” in the hands of the receiver and in the year of receipt and tax is calculated in the following manner:

    Uncommuted pension i.e. periodical pension It is fully taxable in the hands of all employees, whether government or non-government.
    Commuted Pension a) Government employee or employee of local authorities or statutory corporation: Fully Exempted [section 10(10a)(i)] 

    b) Non-Government Employee

    Any commuted pension received is partially exempt from tax in the following manner:

    If the employee is in receipt of gratuity

    Exemption = 1/3 X (100% of Commuted Pension*) *if the employee has commuted the whole of the pension.

    If the employee does not receive a gratuity

    Exemption = 1/2 X (100% of Commuted Pension*) *if the employee has commuted the whole of the pension.

    Caution: Exemption shall be allowed to the extent it is allowed to be commuted and the balance uncommuted Pension received periodically will be fully taxable.

    For example:- Mr. A is drawing a salary of Rs. 20,000 p.m. at the time of retirement and retires from service and becomes entitled to receive a pension of Rs 10,000 p.m. He gets half his pension commuted and receives Rs. 1,50,000/- as lump sum payment. Henceforth, he shall be entitled to a pension of Rs. 5,000 p.m. (If Ram commute his full pension then he will receive Rs 3,00,000)

    Taxability:- 

    1. Uncommuted Pension of Rs 5000 P.M is fully taxable.
    2. Commuted Pension of Rs 1,50,000/-

    If A is a Government Employee: Rs 1,50,000 is fully exempted.

    If A is a non-Government Employee and also receiving Gratuity:

    Exempted pension will be =  Rs 1,00,000 (1/3 X 3,00,000) and the taxable amount will be Rs 50,000/-

    If A is a non-Government Employee and not receiving Gratuity:

    Then Exempted pension will be =  Rs 150,000 (1/2 X 3,00,000) and the taxable amount will be Rs Nil.

     

     

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    • 1
Swati
Teacher
Asked: In:

  1. Vikas Beginner

    Luca Pacioli is regarded as the Father of Accounting. He published the first book on double-entry accounting in 1494. While Friar Luca is regarded as the "Father of Accounting," he did not invent the system. Instead, he simply described a method used by merchants in Venice during the Italian RenaissRead more

    Luca Pacioli is regarded as the Father of Accounting. He published the first book on double-entry accounting in 1494. While Friar Luca is regarded as the “Father of Accounting,” he did not invent the system. Instead, he simply described a method used by merchants in Venice during the Italian Renaissance period. His system included most of the accounting cycle as we know it today. The first accounting book actually was one of five sections in Pacioli’s mathematics book, titled Summa de Arithmetica, Geometria, Proportioni et Proportionalita (Everything About Arithmetic, Geometry and Proportions).

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    • 0
V Mantri
Beginner
Asked: In:

  1. sharmas89 Teacher
    This answer was edited.

    The term accounting refers to the process of recording the financial transactions of the company .

    The term accounting refers to the process of recording the financial transactions of the company .

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    • 0
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