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: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: VAT Audit :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: due date for vat payment :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: form 3cd :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: ACCOUNTING STANDARDS
« General »
 Tax and the dilemma of the self-employed
 Banks warn share tax hike threatens Paris' post-Brexit appeal
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA
 Impact of GST on Real Estate Sector

Maharashtra cooperative sugar firms receive bitter I-T pill
July, 04th 2011

Maharashtras ailing cooperative sugar industry has received yet another shock after income tax department started issuing demands for the payment of dues pending since 1992. These arrears are of the order of Rs 2,500 crore.

The mills under the Federation of Cooperative Sugar Factories in Maharashtra, would soon seek the intervention of Finance Minister Pranab Mukherjee with a plea that the sugarcane price paid to farmers fixed by the state government be treated as business expenditure and not profit.

Vijaysinh Mohite-Patil, chairman of the Federation of Cooperative Sugar Factories in Maharashtra, a representative body of over 160 cooperative mills, told Business Standard, At present, the cases fall in two different categories those falling before 2009 where the concept of statutory minimum price was in force and cases after 2009 when fair & remunerative price (FRP) regime was introduced.

Patil said the income tax departments timing to recover arrears comes at a time when the industry is currently reeling under a crisis due to dwindling sugar prices having short margin on stock of Rs 1,500 crore. Moreover, the next season, which is going to start in October requires pre-seasonal working capital loan of Rs 1,100 crore.

Chairman of a sugar mill from the sugarcane-rich western Maharashtra, who did not want to be identified, said, The industry is not having funds to make the payment of taxes. The money has already been passed down to cane growers. If income tax department takes coercive action for the tax demands like attachment of property, bank accounts and sugar stock, the factories will be compelled to recover money from the farmers. This may lead to unrest in the farmers.

The federation has demanded that all cases before 2009 may be accepted as sugarcane prices have already been paid and the coffers to the sugar factories cannot meet the huge tax demands raised for the past 18 to 19 years.

As far as cases falling after 2009, the actual price paid may be allowed as business expenditure in the year in which the sugarcane is received and accepted.

A federation official said some sugar mills had already filed appeal before the Appellate Tribunal against the recent order passed by the Commissioner of Income Tax (Appeals) and also filed stay petitions.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

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