RM Ltd., Pathankot, is a Maruti Cars dealer and also runs a service station. The sale of cars of RM Ltd. for F.Y.2022-23 is 8.40 crores. The sale of…
CA Final · Direct Tax Laws and International Taxation · MTP · November 2024
RM Ltd., Pathankot, is a Maruti Cars dealer and also runs a service station. The sale of cars of RM Ltd. for F.Y.2022-23 is 8.40 crores. The sale of spare parts and service station is 80 lakhs for F.Y.2022-23. M/s. ABC Ltd., dealing in textile manufacturing, bought three Maruti cars on 18.7.2023, 18.8.2023 and 15.12.2023 for 18 lakhs, 22 lakhs and 9.5 lakhs for business purposes. On 16.1.2024, M/s ABC Ltd. purchased five more cars valuing - 8.9 lakhs each. The payment against each purchase made on the same date of invoice itself. The turnover of ABC Ltd. for the F.Y. 2022-23 is 15.5 crores. What is the amount of tax required to be collected or deducted at source on sale transaction entered between RM Ltd. and ABC Ltd.?
Suggested Answer and Working Notes:
Correct Answer: Option (C)
RM Ltd. is required to collect tax at source of 40,000 under section 206C(1F) and ABC Ltd. is required to deduct tax at source of 400.
Topics: Deduction, Collection and Recovery of Tax
Related Questions in this Topic
- Explain the applicability of TDS/ TCS provisions in the following independent cases and also compute the amount of TDS/T...
- (i) ABC Bank, accepted a Fixed Deposit (FD) for a sum of 20 lakhs in the name of Registrar General of the Court and issu...
- Mr. Ramesh has deposited money under Capital Gain Accounts Scheme, 1988 during the FY 24-25 with State Bank of India. Mr...
- PQR Ltd. has paid - 2,70,000 to Mr. A for Professional Services rendered by Mr. A. The agreement between PQR Ltd. and Mr...
- RK Garg & Company, a Partnership firm has paid Interest amounting - 1,20,000 and - 20,000 to its partners Ramesh Kumar G...