Direct Tax Laws & International Taxation - May 2022 RTP

Are provisions of TCS under the Income-tax Act, 1961 attracted in respect of sale transactions effected by Mr. Ashwath? If so, from whom does he have to collect tax, at what rate and what point of time? Ignore one time transaction of Mr. Sunil’s friend , Mr. Krishna, for the purpose of this MCQ. (a) Ashwath has to collect tax at source from Mr. Sunil and Mr. Sriram@1% on the amount exceeding the prescribed threshold of ` 50 lakhs, at…

What would be the applicable rate of TDS, if Mr. Ashwath fails to furnish PAN to the deductor (based on answer to MCQ 6)? Also, what would be the applicable rate of TCS, if the collectee (based on answer to MCQ 7) fails to furnish PAN to Mr. Ashwath? (a) 20% and 5%, respectively (b) 5% and 1%, respectively (c) 5%, in both cases (d) 1%, in both cases

If the value of purchases by Mr. Shyam from Mr. Ashwath was 70% of the monthly figures given in the table, then, what would be the TDS/TCS implications in respect of such transaction? (a) Mr. Shyam has to deduct tax at source on purchases of ` 18.60 lakhs with effect from 31.12.2021 (b) Mr. Shyam need not deduct tax at source, since payment for purchase transactions with Mr. Ashwath after the date when the TDS provisions came into force, does…

What would be the TDS/TCS implication in respect of the single purchase transaction by Mr. Krishna from Mr. Ashwath? (a) Mr. Krishna has to deduct tax at source as his turnover for P.Y.2020 -21 exceeds the prescribed threshold limit (b) Mr. Krishna has to deduct tax at source, since his purchase transaction of ` 60 lakhs exceeds the annual threshold of ` 50 lakhs and he has made the payment after the prescribed date when TDS provisions came into force.…

11. PoorAid is a charitable trust registered under section 12AB. Its main object is relief of poor. During the P.Y.2021-22, it received ` 50 lakhs by way of corpus donations, out of which it invested 85%, i.e., ` 42.50 lakhs in post office savings bank account. It was of the view that ` 7.50 lakhs, being 15% of ` 50 lakhs, is eligible for unconditional accumulation. The trust also withdrew ` 2.50 lakhs out of ` 42.50 lakhs deposited in…

12. ABC developers have completed their residential housing project “Ashiana Gardens” in Faridabad in May, 2021. It comprises of 8 residential units. 3 units were transferred to home buyers in June, 2021 and the remaining 5 units were transferred to home buye rs in July, 2021. All the units were transferred by way of first time allotment to home buyers. The consideration received for each unit is ` 25 lakhs and the same was received by prescribed electronic modes. The…

11 The following are other particulars furnished for the year ended 31 st March, 2022:(a) The book profit after adjustment of all items specified in section 115JB(2) amounted to ` 97.54 lakhs (except the adjustment for brought forward losses/ unabsorbed depreciation), for the year ended 31.3.2022. (b) Brought forward losses as per books are as under: (` In lakhs) Financial Year 2019-20 2020-21 Business loss Depreciation 9.10 6.10 6.40 8.10 (c) The transition amount as on convergence date (01-04-2020) stood…