The nature of the expenditure treated as a deferred revenue expenditure in the books needs to be properly analysed before taking a view on its allowbaility or otherwise under the provisions of the Act,where such expenditure results in the creation of any capital asset – tangible or intangible – a case can be made out to treat the same as a capital expenditure with corresponding allowability of depreciation in accordance with law,in cases where the nature of the revenue expenditure is such that the same can be clearly and unambiguously identified over specified future time periods (e.g. discount on issue of debentures) akin to prepaid expenses, the same would be allowable over the period to which these relate proportionately, applying the matching principle.
8. The term technical service has come for the consideration before the Hon’ble Delhi High Court in the case of Estel Communications Pvt. Ltd. (supra). In the said case, the assessee was providing internet bandwidth for providing access to its subscribers. The main server, based on which the internet services were provided were located in USA. In that case, the Assessing Officer was of the opinion
1 Raju Raju sat on the wall Raju Raju had a great fall Balance sheet died Shareholders cried Raju Raju made a fraud 2 Raju Raju Yes baba Cheating us No baba Telling Lies No baba Open the balance sheet HA HA HA
The Institute of Chartered Accountants of India (ICAI) will not spare the auditors of Satyam Computer Services if they are found to be guilty. It could even debar them from the profession. ICAI president Ved Jain said, “The disciplinary committee of the institute will lead the investigation and will ask for documents pertaining to Satyam’s […]
A number of trusts, societies and other organization avail exemption under Section 11 or Section 10(23C) by virtue of having income derived from property held under trust wholly for charitable or religious purposes, to the extent of the application of such income. Background of amendment Section 2(15) of the Act defines the term ‘Charitable Purpose’, […]
The Reserve Bank on Friday announced steps to inject an additional Rs 20,000 crore (Rs 200 billion) into the system, a move that would pave the way for further cut in interest rates and more funds for credit disbursal. As part of decisions, forming the second stimulus package finalised jointly with the government, RBI announced […]
Dismissing an appeal filed by the income-tax department recently, a bench headed by Justice S H Kapadia upheld the Delhi High Court judgement, which said the compensatory interest received as subsidy by the Punjab National Bank (PNB) from the RBI for giving concessional loans to exporters did not amount to interest tax chargeable under the Interest Tax Act, 1979.
MUMBAI: From now on, tax cannot be levied on the money paid by a builder to a housing society or private individual for redevelopment of property, the Income Tax Appellate Tribunal (ITAT) has said in a recent order. The verdict is expected to give a boost to the redevelopment business in Mumbai which has over […]
Follow these tips and you will definitely have a much faster and more reliable PC! Most of the below tips works for windows XP. 1. Wallpapers: They slow your whole system down, so if you’re willing to compromise, have a basic plain one instead! 2. Drivers: Update your hardware drivers as frequently as possible. New […]
This is the era of high spending. The truth is today people spend more than their grandparents or parents ever did. Increasing incomes, the desire to own a house in one’s early twenties, the availability of variety in lifestyle and brand choices, a booming economy, a growing number of entrepreneurs, new business establishments, etc, are […]
