Applicability of Alternate Minimum Tax

Applicability of Alternate Minimum Tax All the non-corporate income tax payers are supposed to be paying AMT. The rule for applicability is that the AMT is payable if: Tax under normal Provisions (as per income tax act) is less than AMT. In this case the adjusted total income is considered to be the total income and tax liability is calculated over it. The other rule mentions that the AMT will not be paid by the individual, HUF (Hindu Undivided Family), AOP (Association of Persons) and Artificial Juridical Person if the Adjusted Total Income is not greater than Rs.20 lakhs. Non-Applicability to LLP’s incorporated under foreign Law Limited Liability Partnerships incorporated under foreign laws are not considered â€Å"Firm† as per the definition given under section 2(23) and are considered under the definition given in section 2(17). So, the provisions of AMT are not applicable to such LLPs. Applicability to foreign firms not incorporated under any Foreign Law Foreign firms which are not incorporated as pe r the foreign country law but fits into the definition of â€Å"firm† as per Indian Partnership Act,1932 is considered firm as under section 2(23). So, the provisions of AMT as per chapter XII-BA are applicable to such firms. The Alternate minimum tax liability is as per section 115JC for the income to be chargeable to tax under India. Rate The applicable rate of AMT is 18.5%, which is calculated on Adjusted Total Income. Further, the final AMT is calculated by calculating education and secondary education cess of 3% on 18.5% and surcharge if applicable. Surcharge is not applicable for LLP. A Table containing steps is included in annexure along with an illustration. The steps and illustration are given in Annexure- I and II respectively. As per the provisions of AMT, the final tax liability for the non-corporate assessees is greater of the tax as per normal provisions and Alternate Minimum Tax (Tax @ 18.5 percent (plus secondary and education cess as applicable) on adjusted t otal Income). Alternate Minimum Tax Credit Tax credit is available against future tax liability if AMT is greater than tax under normal provisions. The credit amount is the difference between the two and can be adjusted or carried forward for ten years from the year in which the credit was earned. From the assessment year 2018-19, the period will be fifteen years.The section applicable is 115JD. Set-off is available when the tax as per normal provision for LLP is more than AMT. The amount of set-off is limited to amount paid in excess of AMT. However, the rules regarding carry forward or set-off are not applicable for education and secondary education cess. Further, if the credit is not utilised within ten years then it can’t be availed later on. Interest is not paid on tax credit availed. Application of other Provisions of this Act The provisions are given under section 115JE and are applicable to the non-corporate assessee to whom AMT provisions apply. This section includes advance tax, interest as per sections 234A,234B and 234C penalty. Key points with respect to the New Chapter XII-BA

Business Analysis Report - Flight Centre Essay Example | Topics and Well Written Essays - 2000 words

Business Analysis Report - Flight Centre - Essay Example Current paper focuses on the culture and structure of a well-known Australian company, the Flight Centre. The firm is based on a unique principle: the establishment of small operational centers is preferred instead of large departments; autonomous and flexible small units are used for developing the firm’s operations worldwide. At this point, the firm is strongly differentiated from its rivals – which are likely to use large operational units which can handle a high volume of work but which are characterized by lack of effective communication among their members. Despite its success until today, as explained in the case study, the firm needs to update its culture and structure in order to respond to the challenges of its external environment. The key elements of the firm’s culture and structure are critically evaluated in this paper using relevant literature; the choices available to the firm in terms of culture and structure are also presented, taking into consi deration the conditions in the global market but also the firm’s existing resources and characteristics – meaning its current culture and structure. 2. ... that should be used for managing the various business activities; from this point of view, culture can promote ‘integration and cohesion across the organization’ (Nickson 2007). From a similar point of view, Deal and Kennedy (1988) note that organizational culture indicate ‘the way we do things around here’ (Deal and Kennedy 1988, p.4, in Nickson 2007). Robbins (2009) refers to a quite common definition of culture, which is based on the view that culture, as an element of modern organizations, is ‘a system of shared meaning held by members, distinguishing the organization from other organizations’ (Robbins 2009). Moreover, Dessler (1976) uses three different approaches for defining culture: ‘the structural, subjective and synthetic approaches’ (Dessler 1976, in Dwivedi 1995). The above approaches could be analyzed as follows: the structural approach perceives culture as ‘a set of characteristics which differentiate an organiza tion from another one’ (Dessler 1976, in Dwivedi 1995). At the next level, the subjective approach refers to culture as ‘the view of employees on their organization’ (Dessler 1976, in Dwivedi 1995). Finally, the synthetic approach is based on the combination of the two previous approaches for defining organizational culture (Dwivedi 1995). On the other hand, Schein (1992) describes culture as the ‘perception of a group of individuals/ employees on their organization’ (Schein 1992, in Miller 2008). In the context of the above definition, organizational culture can be successfully defined only if the communication across the organization is satisfactory. The close dependency of culture on communication is also highlighted in the study of Inceoglu (2002); in the above study, reference is made to the sharing of beliefs and