brokerage

Section 40(a)(ia) cannot be read in isolation but must be read along with its proviso and when it is read in that manner, there would be no scope to hold that there will be any harsh treatment meted out to any assessee in the matter of dis-allowance of any expenditure validly made by them. Full Article

As we all aware there were two budgets presented in year 2009. One was interim Budget presented by Finance Minister in Februar 2009 and other one was Final budget Presented by Finance Minister in parliament in July 2009. Normally Final Budget get presendted in parliament in February and Govenment made changes applicable from April. Since budget presented in February was interim budget so in that budget government not made any changes in provisions related to TDS. Full Article

The assessee, a share broker, purchased shares on behalf of its client and paid for them. The brokerage on the said transaction was offered to tax. As the client did not pay for the shares, the assessee wrote off the amount due and claimed the same as a bad debt u/s 36 (1) (vii). The AO rejected the claim on the ground that as the said “debt” had not “been taken into account in computing the income”, Full Article

CASE LAW DETAILS Decided by: CESTAT, SOUTH ZONAL BENCH, BANGLAORE,  In The case of: DHL Lemuir Logistics Pvt. Ltd.  V Commissioner of Service Tax , Appeal No.:, Service Tax Appeal No. 389/2007, Decided on June 29, 2009 RELEVENT PARAGRAPH 6. We have gone through the records of the case carefully. The appellants had furnished a flow chart [...] Full Article

51. Whether expenditure incurred during in-house employee training would be considered as conference expense and liable to FBT? The FBT is not envisaged for levy on the expenditure incurred for the purposes of imparting in-house training to employees. However, FBT would be payable on any expenditure incurred towards food and beverage, tour and travel, and [...] Full Article

32. Whether gross expenses or net expenses (i.e. net of recovery) are to be considered for the purposes of FBT? For example, part of the expenses on various items like travel, may be recovered from the employees. Therefore, whether FBT would be levied on the gross travel expenditure or on the ‘net’ travel expenditure’? Where [...] Full Article

SUMMARY OF CASE LAW The relationship between the assessee-airlines and the travel agent is one of principal and agent; the supplementary commission which is the amount retained by the travel agent is commission within the meaning of section 194H read with Explanation (i) to the said section; the difference between the full value of the [...] Full Article

Stockbrokers who have been taking advantage of the ambiguity in the Income Tax Act rules to reduce their tax payouts could be in for a rude shock. The Bombay high court has ruled that brokers cannot set off losses in the trading business against their other income and that these losses can only be neutralised [...] Full Article