Latest Expert Exchange Queries

Make 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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: cpt :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: TDS :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: articles on VAT and GST in India :: due date for vat payment :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
News Headlines »
 10 things you should know about Form 26 AS
 How to file income tax return without Form 16
 How to rectify income tax returns
 Income-tax (21st Amendment) Rules, 2017
 Deadline for filing income tax return nears; here are 10 common mistakes that you must avoid
 All you need to know about form 26AS
 How to file income tax return?
 7 changes that affect income tax return filing this year
 How To File Income Tax Return (ITR) Online For FY2016-17? Last Date July 31
 Last date for filing income tax return approaches: What is Form 26AS? How it can help you claim refunds
 Income Tax department to launch mobile app to make life easy for taxpayers

Patni Computer asked to pay up Rs 63-cr tax
January, 05th 2007
Waiver applicable only to new biz in STPI, says IT dept

Patni Computer Systems has been asked by the Income-Tax Department to pay up Rs 63 crore, after being denied tax deduction for its software development units located in Software Technology Parks of India (STPI) area.

Under Section 10A of the Income Tax Act, 1961, companies are provided a ten-year tax holiday for setting up software development units in STPI zones. The company has received an assessment order along with a notice of demand from the Income-Tax officer (Technical)-II, Pune, on December 31, in connection with the regular assessment of the company's income-tax return for the year ended March 31, 2004, said a statement from the company to the stock exchanges on Thursday.

The assessing officer has denied the tax deduction upon the premise that such benefits are applicable for companies whose new units in STPI zones are not in the same business as their existing units. The provisions of Section 10A do not apply to Patni as benefits are for new "business" undertakings and are available only for "new businesses". The assessing officer has also stated that the business has been "split" as the company grew over the last several years. Same businesses in new undertakings shall not qualify for such benefits etc and is therefore disallowed under Section 10A of the Income Tax Act, 1961, said Patni's statement to the BSE. However, company officials refused to elaborate further on this matter.

The company will file an appeal challenging the assessment order before the Commissioner (Appeals), on or before January 30.

Analysts believe that this matter could affect the company's financial results. "If PCS makes provisions against the tax deductions as soon as possible, it will surely affect their next quarter numbers," said an analyst who did not wish to be named. He said that Wipro and TCS had been through similar situations but had obtained orders that were ultimately in their favour.

The company statement also said that if it fails to prevail in its appeal, the company's financial results for such reporting period could also be adversely affected. The company's net profit for the year ended December 2005 was Rs 198.71 crore.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

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