Students Manual to General & Commercial Laws

Volume 1:

A Comprehensive LegalCommentary on Law relating to Business Expenditure, Business deductions,Business losses & Business disallowances

Some of the important topicscovered in this Commentary are as follows:

Basic Conditions Pertaining ToBusiness Deductions/Losses & Business Disallowances

Conditions for deductionsunder section 28

Conditions for deductionsunder sections 3 to 36

Conditions for deductionsunder section 37(1)

Relevance of commercialaccounting principles (CAP)

Meaning of Expenditure,reserve, provision, fund, loss and the real income theory

Business disallowances as pergeneral and specific provisions

Specific ConditionsPertaining To Business Deductions And Disallowances

Expenditure before setting upor after closure of business

Expenditure should be only forthe purpose of Business & Profession

Capital expenditure isgenerally not allowable

Expenditure should not becovered by sections 3 to 36

Personal expenses andexcessive payments to specified persons

Profit sharing is notexpenditure

Can Expenditure be deferred?

Expenditure relating tonon-taxable incomes is not allowable

Payments opposed to publicpolicy are not allowable

disallowance of paymentsexceeding Rs.2,

Burden of proof on assesseeand the department

Mixed expenditure can beapportioned

Requirement of account booksand estimation of profits

Year Of Deductibility

Payment basis under section43B

When payments requirededuction of tax at source (TDS)

Method of accounting

Accrual of liabilities

Relevance of principle ofmatching

Quantum of deduction

Relevance of accounting entries

Manner and method of makingclaims

Special Provisions - ModeOf Computation

Illegal business/activities

Long-term contracts as civilconstruction, etc.

Film producers and filmdistributors

Trade, professionalassociation, etc.

Insurance companies

Royalty income in case ofnon-residents under section 44DA

Presumptive Basis OfComputation

Civil contractor under section44AD

Plying, hiring or leasing ofgoods carriage under section 44AE

Retail business under section44AF

Non-residents shippingbusiness under section 44B

Exploration, etc., of mineraloils under section 44BB

Operation of aircraft in caseof non-residents under section 44BBA

Foreign companies engaged incertain turnkey projects under section 44BBB

Head office expenditure ofnon-resident

Assessee Based Deduction

HUF

AOP AND BOI

Partnership

Companies

Fringe Benefit Tax V. BusinessDeductions

Volume 2:

A Comprehensive Ready Reckonerof Business Expenditure/Deductions with special reference to Fringe Benefit Taxprovisions

The main focus of this ReadyReckoner is on:

What expenditure are allowableand when

What losses are allowable andwhen

What allowances are allowableand when

Some of the important topicscovered in this Ready Reckoner are as follows:

Amalgamation or demergerexpenditure

Bad debts

Bonus

Commission payments

Compensation and damages

Conveyance, tour, travel &foreign travel (including expenditure on motor car and aircraft)

Currency exchange loss

Direct taxes and relatedpayments

Donations/Contributions

Education and trainingexpenditure (including higher education)

Employees retirement ortermination expenditures

Employees salary and remunerationpayments

Employees welfare expenditure

Entertainment and Hospitality

Expenses to save or maintainbusiness/business assets/reputation

Festival expenses [includingtemple and puja expenditure]

Financing expenditure

Funds contribution

Gifts

Goodwill, payments for

Guarantees

Hotel, boarding and lodgingexpenditure

Insurance payments

Interest payments

Know-how and royalty

Lease-Mines

Litigation expenditure

Loans and Advances

Medical expenditure

Money lender

Penalty and interest -Statutory/contractual

Raw material - Payments forRaw Material/stock-in-trade

Rent and hiring expenditure

Repairs and renovationexpenditure

Road, expenditure for

Sale/transfer of assets orland

Sales promotion, publicity& conference expenditure

Set off & carry forward oflosses

Shares or Securities

Shifting expenditure

Stamp duty payment

Statutory Liabilities,payments for

Stock losses

Telephone expenditure

Theft or embezzlement

Warding off competition,payments for

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