Governmental authority status supports construction-service exemption, while pre-cutoff contract and stamp-duty compliance requires verification on re...
Automated Free Sale and Commerce Certificates enable paperless processing while retaining risk-based manual verification for selected exporter applica...
Employee stock-shortage penalties do not constitute consideration for services, preventing GST collection under Schedule II in employment relationship...
Interest on borrowed funds may not be disallowed where an assessee can demonstrate sufficient own interest-free funds for interest-free advances to related concerns. Where borrowed funds are diverted to associates, the allowability of interest must be examined by comparing interest paid on borrowings with interest charged on the advances, and the differential cost of diverted funds can be disallowed. Advances to directors and key managerial personnel require proof of commercial expediency; absent such evidence, proportionate interest attributable to those advances is liable to disallowance under section 36(1)(iii).
Interest on borrowed funds may not be disallowed where an assessee can demonstrate sufficient own interest-free funds for interest-free advances to related concerns. Where borrowed funds are diverted to associates, the allowability of interest must be examined by comparing interest paid on borrowings with interest charged on the advances, and the differential cost of diverted funds can be disallowed. Advances to directors and key managerial personnel require proof of commercial expediency; absent such evidence, proportionate interest attributable to those advances is liable to disallowance under section 36(1)(iii).
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4828 
Join Channel 
