Fixed Assets

The government is likely to ease the incidence of minimum alternate tax, or MAT, on infrastructure companies. The department of revenue plans to change the proposed direct tax code to exempt these companies from MAT for the first few years since they execute projects with long gestation periods. The code, in its current form, says all companies must pay MAT based on their gross asset value. In the case of infrastructure companies, this is very high since their asset base.. Full Article

The government may retain profit as the key condition for levying minimum alternate tax (MAT) in the final draft of the direct taxes code after its asset-based approach proposed earlier ran into a storm of protests from industry. Other options being considered by the government include tax exemptions for asset-heavy infrastructure companies and start-ups, and a lower rate for MAT, a senior government official told. Full Article

CASE LAW DETAILS Decided by: ITAT, BENCH `C’, CHENNAI,In The case of: Srivatsan Surveyors Pvt. Ltd. v. ITO,Appeal No.: ITA No. 1899 (Mds.)/2007, Decided on: December 12, 2008 RELEVENT PARAGRAPH 3. We have heard the rival submissions in the light of the material placed before us and the precedents relied upon. The assessee company was carrying [...] Full Article

Press Note No. 6 (2009), dated 4-9-2009 1.0 FDI into SSIIMSE 1.1 A Small Scale industrial undertaking (SSI) was defined in terms of: (i) investment in fixed assets in plant and machinery and (ii) equity participation (both domestic and foreign) in the SSI, by other industrial undertakings prior to 2006.  Full Article

Reliance Communications has had a change of heart, in just three months, on the accounting treatment for reflecting changes in the rupee value of foreign currency loans raised to finance purchase of fixed assets. Full Article

Depreciation allowance for use at any time: Depreciation for assets ‘owned’ by assessee and ‘used’ by him in the business can be claimed and allowed if the asset is purchased and used or if it is kept ready for use at any time during the previous year. Therefore, if an asset is purchased and put [...] Full Article

Reporting is an integral part of any audit through which an Auditor expresses his opinion. In case of Companies, the auditor of the company is required to report on the 21 clauses as given in the Companies (Auditor’s Report) Order (CARO), 2003 issued by Central Government u/s227 (4A) of the Companies Act, 1956.   In this [...] Full Article