03-10-2010, 08:26 PM
I wish to know that is it possible that a company falling under FTR will based on their profit will not be considered under this regime?
The scenario is that a private ltd company falls under the final tax regime based on indenting commission, now is it possible that for e.g the indentiong commission is Rs 100,000; the tax would be 5% i.e Rs 5,000. Now if the company makes a profit of Rs 20,000; Will they have to pay any further amount of tax based on that 35% tax which is applicable on ltd companies based on their profits is Rs 7,000 (20,000*35%). Can anyone confirm this?
Secondly I am aware of this that a ltd company cannot make cash payment of any invoice of more than Rs 10,000. The payment has to be by cheque and crossed. Also that under one expense head such company cannot make a payment of Rs 50,000 in cash.
Please guide me in this regard as I find it quite bewildering.
The scenario is that a private ltd company falls under the final tax regime based on indenting commission, now is it possible that for e.g the indentiong commission is Rs 100,000; the tax would be 5% i.e Rs 5,000. Now if the company makes a profit of Rs 20,000; Will they have to pay any further amount of tax based on that 35% tax which is applicable on ltd companies based on their profits is Rs 7,000 (20,000*35%). Can anyone confirm this?
Secondly I am aware of this that a ltd company cannot make cash payment of any invoice of more than Rs 10,000. The payment has to be by cheque and crossed. Also that under one expense head such company cannot make a payment of Rs 50,000 in cash.
Please guide me in this regard as I find it quite bewildering.
