Section 5 Archives

Notional interest on interest free advances can not be added

By CA Satbir Singh | September 4, 2015

Q Can the Assessing officer add notional interest on Interest free advances ? the Assessing officer made an addition of Rs. 19,32,0001- on account of interest @ 12% on advances of Rs. 1,61 ,00,0001- given to M/s Smart Tourist Pvt. Ltd. The assessee had given an advance of Rs. l,61,00,0001- to M/s Smart Tourist Pvt.… Read More »

Taxability of retention from bill for performance

By CA Satbir Singh | August 22, 2015

0 Comment

Taxability of retention from bill for performance Q If the sum is retained in contract subject to completion of defect free period , when it will be taxed ? on Accrual basis or on receipt basis ? Where right to receive contract amount was contingent upon there not being any defects in works during stipulated period,… Read More »