Latest Expert Exchange Queries
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: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: VAT Audit :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: cpt :: empanelment :: ACCOUNTING STANDARD :: due date for vat payment :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
News Headlines »
 Are multiple service tax rates in the offing?
 All you need to know about claiming tax break on HRA
 How much income tax you should pay on investments in gold?
  Best ways to save tax in 2017
 8 unknown stocks that could yield huge returns
 Government may set threshold for probe into deposits to prevent harassment of taxpayers
 How to calculate capital gains tax
 April 1 still the target for GST: FM
 How to respond to CBDT’s tax compliance notice
 Goods & Services Tax (GST)(As On 01-01-2017)
 Excise, service taxpayers to migrate to GST portal by January 31

Tax sleuths on Satyam trail
January, 09th 2009

When it rains, it pours. The Central Board of Direct Taxes (CBDT) has launched an investigation into Satyam Computer Services, joining a  growing list of authorities investigating the company whose fate hangs in the balance following an admission of financial irregularities by its founder-chairman.

The company, which is likely to be issued with a show cause notice by tax authorities, is being investigated by markets regulator Sebi, the registrar of companies and a host of agencies, including the Andhra Pradesh police.

The income-tax office in Hyderabad, where Satyam is based, has sent in a preliminary report on the company which will set the stage for a more detailed investigation, said a finance ministry official, who asked not to be named.

The company, among Indias top five software exporters in terms of revenues, is likely to be issued with a show-cause notice by tax authorities as they look at the returns filed by the company. The investigation could also include verification of tax payments by the company and its actual liabilities.

Authorities are expected to examine the tax benefits enjoyed by the company over the years on its export income. The company is understood to have drawn benefits under Section 80 HHC of the Income Tax Act which was scrapped in 2005 and allowed companies to avoid paying taxes on export income. The company now enjoys tax exemptions available to software exporters under Section 10A or the Software Technology Park Scheme.

The investigation will see as to how much additional tax benefit accrued to the company on account of inflated income from software exports, the finance ministry official said.

Satyams former chairman B Ramalinga Raju admitted to inflating the companys revenues and profits on Wednesday as part of an elaborate deception for years.

Taxation experts said tax authorities could also examine if additional expenses or credits were claimed by Satyam. These expenses will qualify as unaccounted income, making the company liable to a reassessment by tax authorities, the expert said.

Provisions in the income-tax law allow authorities to go back and open assessment of tax returns of up to six years. Tax returns are based on original accounts and once the company restates its accounts, it will have to amend its tax returns as well. However, companies are allowed to amend tax returns of the previous two years.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Bath SEO Company Birmingham SEO Company Bradford SEO Company Brighton and Hove SEO Company Bristol SEO Company Cambridge SEO Company Canterbury SEO Company Carlisle SEO Company Chester SEO Company Chichester SEO Company Coventry SEO Compan

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