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: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: due date for vat payment :: VAT Audit :: list of goods taxed at 4% :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: cpt :: empanelment :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES
 
 
« News Headlines »
 Income tax returns (ITR) filing guide: 10 excellent tax-saving options other than Section 80C to save money
 TDS Rate Chart for AY 2018-19
 Last date to submit third installment of advance tax is December 15
 5 tax-saving funds that have given stellar returns in the past 5 years
 Find out which ITR Form is suitable for you
  Pr CIT vs. Baisetty Revathi (Andhra Pradesh High Court)
 What is income tax?
 Refund procedure initiated under GST
 Income tax returns (ITR) filing: How to get capital gains tax benefits on assets in own name
 7 avenues to help you save tax under Section 80C of Income Tax Act
 How to make income tax law less taxing

I-T slaps Rs 400-cr notice on DLF
May, 08th 2009

The company understated its income for 2005-06.

DLF, the countrys biggest real estate developer, said the Income Tax

(I-T) Department, had raised an additional demand of Rs 300-400 crore for understating its income for the fiscal year ended March 31, 2006.

The tax demand comes at a time when DLF's profit has shrunk by 41 per cent to Rs 4,629 crore for the fiscal year ended March 2009.

The demand for payment of additional taxes was raised by the department on May 6, 2009, after conducting a special audit, the New Delhi-based company said in a statement to the Bombay Stock Exchange.

The I-T department had provided to the company a report from the Special Auditor commissioned by the department in December 2008 to evaluate the tax fillings for the company for FY05-06.

The special report had recommended that the tax department (re)assess approximately Rs 1,200 crore as additional income, the company said in the statement.

The discrepancy arose as the company had used the percentage of completion method (PoCM) for recognising its revenues and profits for the fiscal year ended 2006, prior to which all accounts were prepared in accordance with conveyancing method. The Institute of Chartered Accountants of India had prescribed the PoCM accounting standards for all construction and real estate companies from FY06. The PoCM recognises sales and tax only after a certain percentage, about 30 per cent of cost, is incurred. Under the conveyancing method tax is paid after the property is transferred to the buyer.

DLFs revenue in the fiscal year ended March 2006 was Rs 1,145 crore while its net profit for the period was at Rs 227.4 crore, according to the red herring prospectus filed by the company with the stock market regulator.

The companys revenue climbed to Rs 1,429.50 crore in the fiscal year ended 2007 while profit nearly doubled to Rs 417.80 crore in the period, according to its filings.

DLF is expected to appeal to the appellate authorities against the assessment made by the I-T departments special audit report.

The company has got an expert opinion on the enhanced taxable income and is confident that this addition will not be sustained by the appellate authorities, DLF said in the statement.

In an unlikely event if the said order is not reversed by the appellate authorities, it can result in a contingent liability of approx Rs 300 to Rs 400 crore, DLF admitted.

DLF has also issued notices to shareholders to pay up the balance amount of money (Rs 375 along with 12 per cent interest per annum) against the shares allotted at the time of its initial public offering. The company did not give details of the number of shares on which the demand for balance of payment were being raised. DLF in June 2007 raised about Rs 9,200 crore from sale of 175 million shares at a price of Rs 525 apiece.

Meanwhile, DLF today said it has bought back about 7,640,000 shares, less than 1 per cent of the company's total outstanding shares, as part of an offer launched seven months back to arrest the slide in share price.

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

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