Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: ACCOUNTING STANDARD :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: form 3cd :: empanelment :: VAT Audit :: VAT RATES :: ACCOUNTING STANDARDS :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India
« News Headlines »
 7 Tax-saving investments for the risk averse
 5 Tax tasks you should complete before March 31
 March 31 deadline nears: Check out these last-minute tax-saving investment options
 How to file income tax returns online without having Form 16 in 10 simple steps
 Deadline For Filing Income Tax Return (ITR) Is Just 11 Days Away: 10 Latest Details To Know
  10 incomes you need not pay any tax on
 How To File Income Tax Returns In Three Steps By March 31, 2018
 10 things about income tax every taxpayer should know
 What to do if your TDS is not deposited with the government
 What if you forget to verify your Income Tax return?
 TDS on rent and other tax tasks to complete before March 31

Firms defer advance tax payments
November, 10th 2008

Interest charged by govt lower than bank rates.

Cash-starved Indian companies have begun to defer their advance tax liabilities in order to tide over the liquidity crisis in the financial markets. While they are required to make advance tax payments in four instalments based on their profit estimate for the year, a growing number of companies are now choosing to pay only at the end of the year.

Companies need to pay 12 per cent annual interest on these deferred payments, which they dont mind because the prime lending rate of most banks is between 13 per cent and 16 per cent. Thus, they end up saving at least 1-4 per cent in annual interest costs.

Self-assessment tax, which shows the deferred advance tax liabilities, paid by companies stood at Rs 13,527 crore during April-October 2008-09, up 86 per cent from Rs 7,253 crore in the same 7-month period of the previous financial year. Personal self-assessment tax paid by individuals during the same period went up 45 per cent to Rs 8,947 crore.

A chartered accountant told Business Standard that mid-cap companies were more prone to this kind of a practice.

Such deferments have come to the notice of the Central Board of Direct Taxes (CBDT), which plans to clamp down on firms which have sharply increased their self-assessment tax.

We are looking at provisions made for advance taxes and the taxes ultimately paid. Wherever provisions are much lower, we are asking the company to pay more, said CBDT Member (revenue) Saroj Bala. The CBDT may take legal action wherever necessary to ensure that companies do not carry forward advance tax payments.

Zonal income tax offices have been instructed to monitor advance tax payments of top 100 cases in each region as well as their quarterly results to look for such deferments.

According to Income Tax rules, companies pay advance tax in four instalments depending on their profit projection. Accordingly, they pay 15 per cent by June 15, 45 per cent by September 15, 75 per cent by December 15 and 100 per cent by March 15.

Individuals pay 30 per cent by September 15 and the remaining amount in two instalments on December 15 and March 15. If they do not pay taxes in proportion to their annual tax liability, they have to pay it with interest.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions