Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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: Central Excise rule to resale the machines to a new company :: VAT Audit :: VAT RATES :: due date for vat payment :: form 3cd :: ACCOUNTING STANDARD :: cpt :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: list of goods taxed at 4% :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4%
 
 
News Headlines »
 The penalties for not paying tax on time
 How to make your salary tax efficient
 I-T Department may go into overdrive this quarter
 Ways to reduce the TDS deduction from your salary
 4 Tips for choosing who prepares your 2017 Tax Returns
 Processing of income-tax returns under section 143(1) of the Income-tax Act which were filed in Forms ITR-1 to 6 & applicability of section 143(1)(a)(vi)
 Price Waterhouse gets 2-year ban in Satyam case
 How to save income tax under section 80C
 These four expenditures can help you save tax under section 80C
 How to avoid excess deduction of TDS from salary income
 Income-tax deduction from salaries during the financial year 2017-18 under section 192 of the Income-tax Act, 1961

Start-ups need not begin life with taxes
December, 19th 2006

Start-up projects, hassled by tax authorities, will now get some breathing space. The income-tax department has been insisting that such firms cough advance tax and pay it along with all other old and established companies. The start-ups, on the other hand, have been at pains explaining that they do not generate income in the first few quarters of operation and it makes little sense for them to pay the tax.

However, tax authorities have been adamant that advance tax should be paid based on the projection of the full-year earnings, just as any other company.

Now theres good news for start-ups. The Income-Tax Appellate Tribunal recently ruled that start-up projects are exempt from the mandatory provision of assessing the income of the accounting year and remitting the tax in advance.

Thus, the new entrepreneurs can remit the tax only after receiving the income and tax authorities cannot levy interest and penalty for not paying the earlier instalments of advance tax.

Advance tax is paid in four instalments: 15% in June, 30% in September, 30% in December and the balance 25% in March, after making a projection of the income for the given fiscal.

For example, if a corporate estimates a tax outgo of Rs 1 crore based on the earnings estimated for the full financial year, it is liable to pay an advance tax of Rs 15 lakh in June, Rs 30 lakh each in September and December, and Rs 25 lakh in March. The tax is paid by the 15th day of the concerned months.

According to ITAT, Law does not oblige the tax payer to do something which is impossible. The fundamental point the ruling deals with is whether a firm is liable to pay tax in advance (say, in June) even if its first income, after incorporation of the company, is received at a later stage during the fiscal, as late as December or March? However, the question crops up whether the start-up should be exempt from paying an advance tax in the first quarter even if the firm generates income as early as March.

The order has wide implications and will have a bearing on all new enterprises, senior chartered accountant Narayan Verma said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

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