Direct Tax Laws & International Taxation - November 2023

Pvt. Ltd., a Tooth brush manufacturing company, having its factory in Rajkot, Gujarat shows a net profit of *79,50,000 after debiting and crediting of the amounts in its Profit and Loss Account as mentioned below for the year ended March 31, 2023: (a) Depreciation as per Companies Act 7 85,00,000. (b) A gross loss of amount of # 25,00,000, due to destruction of old machinery by fire in the factory. Though ¢ 7,80,000 was received as scrap value on this…

Food Corporation Ltd., a domestic company engaged in manufacturing of FMCG products. It has business of manufacturing, marketing and selling of a wide range of food products and edible oils in India. The company has prepared Statement of Profit & Loss in accordance with the Schedule Ill to the Companies Act, 2013 and such Statement of Profit & Loss for the previous year ended 31-03-2023 shows a net profit of 89 lakhs. The above net profit was arrived at in…

Mookti Foundation, a Charitable institution registered under section 12AB set up on 1% August, 2021 is engaged in preservation of forests. The accountant of the institution provides the following details of the institution to you as a Chartered Accountant. Please discuss the treatment of Application of Income/Expense in the hands of the Charitable institution for the previous year 2022-23 in the following independent situations as per provisions of Income-tax Act, 1961. Your answer should be followed with reasons: (i) The…

(a) Examine the applicability of Tax to be deducted at Source (TDS) or Tax to be collected at Source (TCS) as per the Income-tax Act, 196 | in the following independent situations. Calculate the amount of tax to be deducted at Source or tax to be collected at Source in given cases as per the provisions applicable for the Assessment Year 2023-24: (i) Mr. Ron took a loan of # 10 lakhs from his employer, Thomas Private Limited, an Indian…

(a) Answer any two out of the following three sub-parts (i), (ii), (iii) Your answer should cover. (1) Issues involved (2) Provisions Applicable (3) Analysis and Conclusion (i) Mr. Surajit e-filed his Income-tax Return for A.Y. 2023-24 on July 21, 2023. He declared a total income of # 11,75,000. Total income includes interest from Public Provident Fund (PPF) # 95,530 and longterm capital gains on agricultural land exempt under section 10(37). Both these incomes were disclosed in the schedule of…

(a) Please discuss the relevant provisions of Income-tax Act in the following independent situations: @ The Institute of Chartered Accountants of India (i) Examine whether General Anti-Avoidance Rules (GAAR) can be invoked in this case — XY Ltd an Indian company has 2 manufacturing units, unit C in the SEZ and unit D in non-SEZ. It transfers the goods manufactured by unit D to unit C at a price significantly lower than the market value of goods and thus becomes…