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: empanelment :: articles on VAT and GST in India :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: cpt :: ACCOUNTING STANDARDS :: due date for vat payment :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
News Headlines »
 Securities excluded from GST ambit in revised Bill
 GST dilemma: Hope fades for new tax regime
 5nance.com launches tax investment platform
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice

Govt to soon clear air on Tax refund
August, 06th 2009

A mechanism may be on the anvil to help companies to reclaim the fringe benefit tax they had paid for the first quarter along with advance corporate tax, as the government goes about implementing the budget proposal to abolish the levy with retrospective effect from April 1, 2009.

Companies may be able to seek a refund or a set it off against their other tax liabilities, and the finance ministry, which is examining the issue, is likely to come out with a clarification on the matter, said a senior official.

Finance minister Pranab Mukherjee had abolished the tax in the Budget 2009-10 presented in July.

However, companies had to pay FBT along with corporate advance tax in June, ahead of the presentation of the budget. The government had collected over Rs 1,000 crore as FBT in the first quarter, April-June, 2009-10.

Tax experts say the Central Board of Direct Taxes, the apex direct tax body, will have to clarify the matter and prescribe a mechanism for a refund or tax adjustment in the current financial year.

It is a unique situation with no easy solution since taxes have been collected against a provision that may no longer exist. Ideally, taxpayers should be permitted to claim a refund right away by means of a specified form that CBDT could notify.

If taxpayers have to claim the refund under their normal tax returns, it would be a two-year wait at the minimum which is too long, said Amitabh Singh, partner, Ernst & Young.

While the tax can be easily set-off or adjusted against future advance tax payments of companies, a refund is the only option for a loss-making company. In respect of loss-making companies, liaison offices, where they are not liable to pay corporate tax, the FBT paid in first quarter would have to be claimed as a refund as it cannot be adjusted against any other tax, said Vikas Vasal, executive director, KPMG.

FBT, introduced by former FM P Chidambaram in 2005, is a kind of presumptive tax on expenditure incurred by a company on its employees.

Some of the benefits given by an employer to the employees were taken as deemed to be given, such as travel and hotel stay, of which 20% of expenditure incurred is treated as deemed fringe benefit.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

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