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Taxmann Income Tax, GST & Indirect Taxes

   

Added on  2020-04-01

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Running head: TAXATION LAWTaxation LawUniversity NameStudent NameAuthors’ Note

2TAXATION LAWTable of ContentsSolution to Task Numbered 1:...................................................................................................2Solution to task Numbered 2:.....................................................................................................3Solution to Task Numbered 3:...................................................................................................5Solution to Task Numbered 4:...................................................................................................8References..................................................................................................................................9

3TAXATION LAWSolution to Task Numbered 1:According to Taxation ruling mentioned under section 4-15 of the directive Income TaxAssessment Act of the year 1997, taxable income can be estimated by proper subtraction ofpermissible expends from the assessable income (Cao et al. 2015). In essence, individualsmaking disbursements for tax can claim to get subtraction from the specific quantifiableproceeds. Laws under Section 8-1(1) mentioned under ITAA declared during the year 1997explain that an individual can ask for deductions for -For the purpose of creation of quantifiable income-For the purpose of carrying out business actionsThorough analysis of the rulings on taxation helps in gaining understanding regarding thefollowing:-As per the bylaws specified under the rule section 8-1 outlays carrying machineryfrom one site to another can be considered for deduction only if the machinery is putto use for generation of proceeds that can be taxed (Davis et al. 2015). The legal casespecified under the title “Granite Supply Association Ltd vKittonof 190” helps invalidating that corporations for particularly reposition of business’s plants need not beallowed for subtraction as the outgoings are capital in make-up. In addition to this, theconsequences of the case on Smith v Westinghouse Brake Companyof 1888 also helpsin substantiation of the same matter as mentioned by the case on Granite SupplyAssociation Ltd vKittonof 190. -Taxation ruling under segment 8-1 under ITAA declared during the year 1997 statesthat cost borne by the business for re-estimation of resources cannot be taken intoaccount as deductible expenditure (Kenny 2013).

4TAXATION LAW-According to Taxation ruling mentioned under sub-division of the rule 8(1) any typeof disbursements for official/lawful proceedings, that subsequently can resist theliquidation of the firm can be considered as deductible pay out (Krever 2013)-Taxation ruling pronouncement stated under the segment 8-1 articulates that businessspending carried out by legal representative for generating business earning can beregarded as an acceptable subtraction (Milton 2013)Solution to task Numbered 2:Analysis of the case reveals that the corporation Big Bank Ltd functions through 50 branchesand has numerous call centres for support. Headquarter of the firm is situated in a 10 storiedbuilding.It can be hereby ascertained that goods and service tax input credit is permissible ifthe purchases made by a corporation associated to this type of business dealings areappropriately preserved. Keeping in mind the directives as mentioned under the Goods andService Tax Act declared in the year 1999, it can be hereby asserted that business corporationoperating for generation of higher level of earnings have the ability to acquire input credit.This is necessarily directed towards carrying out disbursements for goods and service tax(GST) that acknowledged purchase of material or asset (Morgan et al. 2013).Recognized Issue:This is necessarily recorded for the purpose of implementation of goods and service tax.Furthermore, evaluation of the case study reflects the fact that the business firm incursspecific expense amount of $1650000. This amount expended for advertising of products isinclusive of GST. Nevertheless, the bank intends to check whether the entire amount ofdisburse for advertisement can be allowed as input credit since the expend counts the goodsas well as service tax (Parker 2015).

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