INSTITUTE OF CHARTERED ACCOUNTANTS OF

INDIA

The Black Money (Undisclosed

Foreign Income and Assets)
and Imposition of Tax Act,
2015
CA T. P. OSTWAL

INTRODUCTION
Focus on undisclosed income and assets outside India.
Information received from countries like France, Germany, etc.
Swiss Bank disclosures on bank accounts owned by Indians and
media reports
Need for stringent laws to curb tax evasion.
Supreme Court directives and Special Investigation Team (SIT)
findings
Bringing tax evasion under the net of Prevention of Money
Laundering Act, 2002.
The Black Money (Undisclosed Foreign Income and Assets) and
Imposition of Tax Act, 2015 is applicable from 1 April 2016 i.e. from
A Y 2016-17.
T P OSTWAL & ASSOCIATES

June 2015

EU, SWISS SIGN AGREEMENT TO END BANK SECRECY

The European Commission and the Swiss government May 27

signed a landmark new tax transparency agreement, which
will effectively end bank secrecy for Europeans, strengthen the
fight against tax evasion and prevent tax evaders from hiding
undeclared income in Swiss accounts.
T P OSTWAL & ASSOCIATES

June 2015

BLACK MONEY PROBE

India signs the Multilateral Competent Authority
Agreement (MCAA) pact on Automatic Exchange of
Information (AEOI)
- Previously, 54 countries had joined the MCAA.
- India is among six countries that joined this taking the
number to 60.
Recently Switzerlands Official Gazette revealed
-publicly
The target
is to reach
94 countries
by 2017.
names
of seven
Indians
on the list for tax
evasion
Swiss Federal Tax Administration has asked to file an appeal
within 30 days if they do not want their details to be shared
with the Indian authorities.
The names of the seven persons are
- Yash Birla,
- Gurjit Singh Kochar,
- Ritika Sharma, Sneh Lata Sawhney and Sangita Sawhney,
- Sayed Mohamed Masood and his wife Chaud Kauser
Mohamed Masood
4

BLACK MONEY PROBE

A list of 628 names was submitted in 2010 by France to India. There are people who
allegedly held bank accounts at HSBC's Geneva branch.
India has so far initiated action in 121 cases. No activity or money deposits have been
found in 202 accounts.
Late last year, Mr Jaitley said 250 Indians on the HSBC list had admitted to holding
foreign accounts but cautioned that not all of them were illicit.

June 2015

T P OSTWAL & ASSOCIATES

STRUCTURE OF THE BLACK MONEY ACT

Black Money act has 88 sections and
7 chapters as under:

Preliminar
y

T P OSTWAL & ASSOCIATES

Basis of
charge

Tax
Manageme
nt

Penalties

Offences
and
Prosecuti
on

Onetime
disclosure
window

June 2015

General
Provisions

T P OSTWAL & ASSOCIATES

June 2015
7

Undisclosed
foreign income
and asset
means the total
amount of
undisclosed
income of an
assessee from a
source located
outside India
and the value of
an undisclosed
asset located
outside India.

Undisclosed
asset located
outside India
means an asset
(including financial
interest in any
entity) located
outside India:
held by the assessee
in his name or where
he is a beneficial
owner; AND
he has no
explanation about
the source of
investment in such
asset; OR
the explanation
given by him is in
the opinion of the
assessing ofcer
unsatisfactory.

Black Money
Act applies
to all
persons who
are resident
and
ordinarily
resident in
India.

SCOPE

WHO IS ASSESSEE?
Section 2(1) defines Assessee as under:
assessee means a person, being a resident other than not
ordinarily resident in India within the meaning of clause (6) of section
6 of the Income-tax Act, by whom tax in respect of undisclosed
foreign income and assets, or any other sum of money, is payable
under this Act and includes every person who is deemed to be
an assessee in default under this Act
The term person is not defined in the Black Money Act so its
definition under the ITA must be adopted. Accordingly, assessee will
include individual, HUF, company, firm, AOP, BOI, local authority and
every artificial judicial person.
This Act will not apply to any person who is Not Ordinary Resident
and Non Resident.

T P OSTWAL & ASSOCIATES

June 2015

IMPORTANT DEFINITIONS
SAME AS INCOME TAX ACT
TERM/WORDS

UFIA

I.T. ACT

Appellate Tribunal

2(1)

2(4)

Assessment

2(3)

2(8)

Assessment Year

2(4)

2(9)

Board

2(5)

2(12)

2(10)

2(42)

Resident

u/s. 2(15) UFIA

- all other words and expressions used herein but not defined and
defined in the Income-tax Act shall have the meanings respectively
assigned to them in that Act.
9

APPLICABILITY OF THE BLACK MONEY ACT FOR INDIVIDUALS

Resident &
Resident but
Ordinary
Not Ordinary
Resident (ROR) Resident
(RNOR)

Non Resident

Whether
resident in
previous year?

Yes

Yes

No

Whether
satisfies
conditions
prescribed u/s 6
of ITA?

Yes

No

No

Whether Black
Money Act is
attracted?

Yes

No

No

T P OSTWAL & ASSOCIATES

What would
be the
consequenc
e where a
person is
resident
more than
one Country
(Dual
Residence
Cases)?

June 2015

10

IMPACT OF POEM ON CERTAIN COMPANIES

(AMENDMENT IN SEC. 6 OF THE ITA BY FINANCE ACT, 2015)

Hitherto, the test of residency was whether the company is incorporated in India or is
wholly controlled and managed within India.
Replaced term wholly controlled and managed within India with the standard of
place of effective management (POEM).
POEM has been defined to mean a place where key management and
commercial decisions that are necessary for the conduct of the business of
an entity as a whole are, in substance made
A foreign company will be considered tax resident in India if its POEM is in India in the
relevant financial year..
Since POEM has become the test for corporate residence in the ITA in India, the impact
of the Black Money Act will have a wider scope than intended.
T P OSTWAL & ASSOCIATES

June 2015

11

WHAT IS UNDISCLOSED ASSETS LOCATED OUTSIDE INDIA ?

As per section 2(11), Undisclosed Assets located Outside India (including Financial
Interest in any entity) means:

Assets held by the assessee in his own name

OR
in respect of which assessee is a beneficial owner and he has no
explanation about the source of investment in such assets or
explanation given by him is in the opinion of the Assessing Officer
is unsatisfactory.
Section 2(12) defines Undisclosed Foreign Income and Assets
means:Income of an assessee from a sources located outside India and the value
of an undisclosed asset located outside India, computed as per section 5
and as referred to in section 4.
T P OSTWAL & ASSOCIATES

June 2015

12

SECTION 3- BASIS OF CHARGE

The charge is for every assessment & hence this Act is
permanent feature of our tax system & will act as a
deterrence to accumulate income or assets abroad.
Tax on Undisclosed Income and Assets is @ 30% &
charged to tax in the previous year in which it has
come to the notice of the assessing ofcer.
No Surcharge and Education Cess on Tax or Penalty.

Exodus of
people from
India
started (as it
does not
apply to Non
Residents).

Value of Assets shall be taken at Fair Market Value

determined as per Rules in the previous year in which
such asset comes to the notice of Assessing Ofcer.
T P OSTWAL & ASSOCIATES

June 2015

16

SCOPE OF TOTAL UNDISCLOSED FOREIGN INCOME

AND The
ASSET
(S.4)
Act will apply from FY 2015-16 (AY 2016-17).
Scope will cover
Income in respect of which no return is filed within time allowed u/s
139(1), 139(4) & 139(5) of the ITA.
Value of an undisclosed asset located outside India
Any variation made in the income from a source outside India in the
Assessment or Reassessment of the total income of any previous year, in
accordance with section 29 to 43C (Business Income), 57 to 59 (Income
from Other Sources) or 92C of the ITA shall not be considered as
Undisclosed Income.
Note: Income from House Property and Capital Gains excluded from above
No clarification for adjustment made u/s 93 or 94A or Exchange Rate Differences.
Deemed Income of foreign property u/s 23 of the ITA?
T P OSTWAL & ASSOCIATES

June 2015

17

SECTION 5 - COMPUTATION
MECHANISM
No deduction of expenses and setoff of any losses.
Means taxed on Gross Basis.
No deduction for liability in relation to any foreign
assets purchased.
If assessee furnishes evidence that any income
which is assessable or assessed to tax in any
previous year prior to 01.04.2015, shall not be
added.
T P OSTWAL & ASSOCIATES

June 2015

18

Computation of tax on UFIA

Computation of total UFIA
Income from source located outside India (foreign income or FI ) which has
not been disclosed in IT Return

XX

FI in respect of which no IT return has been filed

XX

FMV of UFA (no explanation or unsatisfactory explanation about the source of

income has been provided ) manner of valuation to be provided

XX

Less
Income which has been assessed to tax for any assessment year under the
ITA prior to relevant AY in which UFIA applies

XX

Income which is assessable or has been assessed to tax for any assessment
year

XX

In case of immovable properties, the deduction will be:

Value of UFA in the same proportion as assessed / assessable foreign income
bears total cost

XX

Total value of UFIA

XX

Tax @ 30%
XX
The quantum of penalty may vary between 100% to 300% of the tax amount,
depending on whether voluntarily disclosures are made under one time disclosure
window or UFIA is detected by Assessing officer

19

Computation of tax on UFIA

Illustration:
Mr. A acquired foreign asset (immovable property) in the AY 201011 for Rs.60 lacs. Out of the total investment, Rs.40 lacs was
assessed to tax in an earlier year.
In AY 17-18, AO identified the value of such undisclosed asset as
Rs.2
crore for of
which
noUFIA
explanation was provided
Computation
total
Rs. (in
crores)
FMV of UFA (no explanation provided or explanation not
satisfactory)

2.00

Less
Income which has been assessed to tax for any assessment
year under the ITA prior to relevant AY in which the Black
Money Act
[Rs.2crore -(Rs.2crore X 0.40 lacs / 0.60lacs)]
T P OSTWAL & ASSOCIATES
Amount chargeable to tax under Black Money Act

(1.33)

June 2015

0.67

20

Tax Management Assessment Procedure

(Chapter
No requirement
to III)
file a separate return under Black Money Act.
The assessing ofcer on receipt of information from Income Tax Authority
under the ITA or any other authority under any law or on coming of any
information to his notice (source of information not specified) shall serve a
notice requiring assessee to produce such information and document as he
may require.
E.g: Information may be from sources such as legal or illegal or stolen data.
Issue of notice for assessment/reassessment (no timeline provided),
opportunity of being heard and furnishing of evidences/documents will be
given principles of natural justice to be followed
Inquiry or investigation by Tax Authorities into matters of the assessee even
T P OSTWAL & ASSOCIATES

though there are no proceedings pending before it

June 2015

21

Tax Management Assessment Procedure (Chapter III)

(CONTD)

Time limit for completion of assessment and reassessment shall be

2years from the end of the financial year in which notice was issued
It is expected that two assessment orders will be passed in respect of
period covered by a single return of income: under section 143(3) of
ITA and 10(3) of Black Money Act
Remedial measures provided-appeal to CIT(A)/ITAT/High Court and

Supreme Court (for substantial question of law), rectification of

mistakes, revision of orders, recovery of arrears

T P OSTWAL & ASSOCIATES

June 2015

22

RECOVERY OF TAX
Power of AO to recover the outstanding demand from the
assessee as per any mode specified
AO or Tax Recovery Ofcer (TRO) may direct:
i) employer of the assessee to deduct tax in arrear from the
assessee, from any amount payable to the assessee.
ii) debtor of the assessee to pay tax in arrear from the
assessee, not exceeding the amount of debt.
If debtor fails to make payment, he shall be deemed to
be assessee in default and proceedings may be initiated
against him for realization of amount.
Section 31(6): Assessee cannot dispute the correctness of the
any
certificate
drawn up by TRO on any ground whatsoever.
T P OSTWAL
& ASSOCIATES

June 2015

23

LIABILITY ON PERSONS OTHER THAN ASSESS

Section 35 and 36 :- Black Money Act imposes personal liability on

manager (including a managing director) of a company,
partners,
member of AOP or BOI

for any amount due, if the amount is not recoverable from the company/ firm/ AOP BOI.
Only manager of the company and partner of Limited Liability Partnership (LLP) will not be
held liable
if he proves that non-recovery cannot be attributed to any neglect, misfeasance or breach of
duty on his part in relation to the affairs of the company/ LLP.
The
Act Black
is silent
on the Act
liability
of partners
of the
thanfor
LLPabetting
and members
The
Money
imposes
liability
onfirm
theother
person
or of

inducing
another to willfully attempt to evade tax or to make
AOP and BOI.
false statements/declarations in relation to foreign income and
assets.
24

CHAP IV - PENALTY & CHAP V OFFENCES &

PROSECUTIONS
Nature

Penalty

Attempt to evade tax, interest and 300% of the Tax

penalty
Payable

Prosecution
(if any)
3 years 10
years

Failure to disclose foreign asset or

income in the return of income **

Rs. 10 Lakh

6 months 7
years

Attempt to evade payment of tax,

interest and penalty

Amount of Tax
arrear

3 months 3
years

** Failure to report bank accounts with a maximum balance of upto Rs.5

lakh at any time during the year will not entail penalty or prosecution.

T P OSTWAL & ASSOCIATES

June 2015

25

CHAP IV - PENALTY & CHAP V OFFENCES &

PROSECUTIONSPenalty Prosecution (if
Nature
any)
Subsequent offences under this Act- where a
person commits the second (or subsequent)
offence

3 years 10
years
Plus Fine
Rs.5 lac to Rs.1
cr

Person makes false statement or delivers false

evidences

6 months 7
years

Abetment to make and deliver false return,

account, statement or declaration relating to tax
payable

6 months 7
years

If assessee fails to answer any question, sign a

statement he is legally bound to or fails to produce
books and supporting evidences
T P OSTWAL & ASSOCIATES

Rs. 50,000
to Rs.
2,00,000
June 2015

26

SECTION 54- PRESUMPTION AS TO CULPABLE

MENTAL
STATE
Section
54 reads
as under:
(1) In any prosecution for any offence under this Act which requires a culpable
mental state on the part of the accused, the court shall presume the existence
of such mental state but it shall be a defence for the accused to prove the fact
that he had no such mental state with respect to the act charged as an offence in
that prosecution.

Explanation.In this sub-section, culpable mental state includes intention,

motive or knowledge of a fact or belief in, or reason to believe, a fact.

(2) For the purposes of this section, a fact is said to be proved only when the court
believes it to exist beyond reasonable doubt and not merely when its existence is
Onus to
non-culpability
beyond reasonable doubt is shifted
established
byprove
a preponderance
of probability.

on the accused

T P OSTWAL & ASSOCIATES

June 2015

27

(Corresponds to Sec 278E of ITA)

ONE TIME COMPLIANCE

PROCEDURE CHAPTER VI

T P OSTWAL & ASSOCIATES

June 2015

28

ONE TIME COMPLIANCE PROCEDURE CHAPTER

VI
Positioned as not being an amnesty scheme there is no immunity from penalty
One time compliance scheme window (with a time limit to be notified) for disclosing
any UFA and acquired from income chargeable to tax under ITA for any assessment
year prior to AY 2016-17
Finance Minister has indicated that a time limit of 2 months from the date of
President's assent for one time compliance and 6 months for payment of tax and
penalty Source Press Trust of India (PTI)
Merely an opportunity for persons to come clean and become compliant before the
stringent provisions of the new Act come into force
Any person can make declaration (format and the due date to be notified) in respect
of UFAs and pay tax on it @ 30% plus penalty (equal to tax) i.e. total 60%
Taxes and penalty is to be paid on or before filing of declaration
T P OSTWAL & ASSOCIATES

June 2015

29

ONE TIME COMPLIANCE PROCEDURE CHAPTER

VI

Tax will be on value of UFA as on the date of enactment of this new legislation
No additional interest u/s.234A, 234B and 234C of the ITA will be levied
No exemption, deduction or set-off of any carried forward losses
Amount of UFA so declared shall not be included in the total income of any
assessment year in ITA

No reopening of assessment due to disclosure under this scheme -Declaration

will not affect finality of completed assessment
Any declaration made by misrepresentation or suppression of fact shall be
deemed as void-ab-initio.
T P OSTWAL & ASSOCIATES

June 2015

30

ONE TIME COMPLIANCE PROCEDURE CHAPTER

VI
Declaration shall not be considered as an evidence against the
declarant for initiating penalty or prosecution proceedings under
ITA,
Wealth-tax Act, 1957,
Foreign Exchange Management Act, 1999,
Companies Act, 2013 or
Customs Act, 1962.
Statement of Objects and Reason to the Act clarified that only till the
time Chapter VI - One Time Compliance Window is in existence, no
evidence against the declarant shall be used for initiating penalty or
prosecution under ITA, Wealth Tax Act, FEMA, Companies Act or
Customs Act.
It is merely an opportunity for persons to become tax compliant
before the stringent provisions of the new legislation come into force
- (Statement of Objects and Reasons)

T P OSTWAL & ASSOCIATES

June 2015

31

ONE TIME COMPLIANCE PROCEDURE CHAPTER

One time window not open for any person who:VI
Who has been issued an order of detention under the Conservation of Foreign
Exchange and Prevention of Smuggling Activities Act, 1974 (subject to certain
conditions)
Who is subject to prosecution for any offence punishable under Chapter IX or
Chapter XVII of the Indian Penal Code, the Narcotic Drugs and Psychotropic
Substances Act, 1985, the Unlawful Activities (Prevention) Act, 1967, the
Prevention of Corruption Act, 1988
Notified under section 3 of the Special Court (Trial of Offences Relating to
Transactions in Securities) Act, 1992
Against whom notice of assessment has been issued under Income Tax Act 1961
Against whom time limit for furnishing of notice of assessment has not expired
due to search, survey under the Income Tax Act 1961
2015
32
Against whom information has been received in respect of UFA fromJune
competent
authority under a formal pact (cases like account holders of HSBC Geneva which

ONE TIME COMPLIANCE PROCEDURE CHAPTER

Issues
VI
Whether declaration can made in respect of undisclosed foreign income
not represented by any asset?
Whether declaration can be filed during pendency of appeal?
Whether value of undisclosed asset to be taken as on 1.04.2015 or
1.04.2016?
Whether declaration to be made by Trust or its beneficiary?
T P OSTWAL & ASSOCIATES

June 2015

33

TREATIES - SECTION 73
The Central Government may enter into an agreement with
the foreign countries or specified territories :
For exchange of information for prevention of tax evasion or
avoidance on UFI chargeable under this Act or law in the
corresponding country
For investigation cases involving such tax evasion or avoidance

For recovery of tax under this Act

No provision granting relief against double taxation of

income under UFIA Act and corresponding law in
foreign jurisdiction

34

FEMA and UFIA -Issues

Examples of foreign assets held legally under FEMA

Any resident individual (under FEMA or ITA or both) who is holding assets abroad
acquired from LRS
Any Indian resident company holding assets abroad under Overseas Direct
Investments (ODI) Guidelines
Inheritance of foreign asset by Indian resident from non-resident relative and
continues to hold the same as permitted under section 6(4) of FEMA
A resident person who continues to hold assets abroad which were acquired when
non-resident as permitted under section 6(4) of FEMA

35

FEMA and UFIA -Issues

Examples of foreign assets held legally under FEMA

Onus is on the Tax Payer to prove that they

are holding foreign assets legally and proper
disclosures / filings were made. If so, the Incometax Commissioner / RBI / Enforcement Director
under FEMA cannot take any penal action /
prosecution without any proper enquires
However, Finance Act 2015 proposes that the
Enforcement Director under FEMA can directly
seize equivalent value of Indian assets (without
asking any questions) and merely on the reason
to believe or suspicion similar amendments are
also proposed under Prevention of Moneylaundering Act, 2002 (PMLA) vide Finance Act

36

STRINGENT PENALTIES FOR LAWFUL

STRUCTURES
Far reaching, impacting
everyone from those returning to

India after a stint abroad to those who are in India remitting

funds abroad under the Liberalised Remittance Scheme;
fund managers having carry structures to corporations
having subsidiaries abroad.
The Act does not appear to make a distinction between
legal and illegal structures.

The Act imposes its strict consequences even where the

structure has been set up in a legally compliant manner, if
there has been a non-disclosure.
T P OSTWAL & ASSOCIATES

June 2015

37

KEY CONSIDERATIONS
Tax evasion to be
dealt strictly,
however, it cannot be
treated at par with
criminal law

Benami Transaction
law to tackle black
money within India

Adequate
documentations and
record to be
maintained in relation
to foreign income and
assets
T P OSTWAL & ASSOCIATES

Consider to provide
basic threshold to tax
payers having low
value foreign assets
and income

Misuse of information
may cause
harassment to Tax
Payers who may want
to come clean
June 2015

38

Case Study CWT vs. Estate of HMM Vikramsinhji of Gondal

[2014] 225 Taxman 166 (SC)
2 Trusts in
UK

3 Trusts in
US

Outside India
Within India

Settled Discretionary Trusts

Assessee

Apex Court observed that A discretionary trust is one which gives a beneficiary
no right to any part of the income of the trust property, but vests in the trustees
a discretionary power to pay him, or apply for his benefit, such part of the
income as they think fit. The trustees must exercise their discretion as and
when the income becomes available, but if they fail to distribute in due time,
2015
the power is not extinguished so that they can distribute later. June
They
have 39no
T P OSTWAL & ASSOCIATES
power
to bind themselves for the future. The beneficiary thus has no more than

Case Study Mohan Manoj Dhupelia vs DCIT

[2014] 166 TTJ 584 (Mumbai - Trib.)
Discretionary
Trust
(having bank
account in
Liechtenstein
Bank)
Outside India
Beneficiary
Within India
Assessee

T P OSTWAL & ASSOCIATES

Information regarding beneficial

status in foreign trust having huge
bank balance neither disclosed in
ROI nor in return filed pursuant to
notice issued u/s 148

The AO made addition on

account
of
alleged
undisclosed income in the
hands
of
the
named
beneficiary(ies)
The assessee contended that
the
alleged
trust
was
discretionary trust and the
amount
was
neither
deposited nor received by
the assessee.
The Tribunal upheld the order
of the AO observing that:
June 2015
40
documents received
ofcially

ISSUES
Whether the Act is constitutionally valid ?
(Reference can be drawn from Supreme Court decision in case of Navnitlal C. Javeri vs
K. K. Sen [1965] 56 ITR 198 where validity of deemed dividend u/s 2(22)(e) was
challenged and held as constitutionally valid)

Is Settlement Commission still viable option?

Section 10 states on receipt of an information from an income-tax
authority
under the Income-tax Act or any other authority under any law for the
time being in force or on coming of any information to his notice. How
wide are the powers of AO to issue notice and invoke the provisions of
the Act? Is it necessary that information must come from a credible
/reliable and legal source?
What happens where the value of the undisclosed asset is lost / there
is diminution in value of the asset? Will there be any downward
adjustment?

CASE STUDY
CASE STUDY 1

Mr. Tom was non- resident in India till 2012. He returned

to India and kept Rs. 1 crore in a current a/c with HSBC
India out of the money earned abroad. He forgot to
disclose this amount in his balance sheet in tax return.
Can the asset be covered under the Act?

T P OSTWAL & ASSOCIATES

June 2015

42

CASE STUDY
CASE STUDY 2
M/s. XYZ, a company incorporated in the Netherlands, is the owner of IPR of the
XYZ group.
It has various assets which are on balance sheet and disclosed to the Dutch tax
authorities and also owns certain intangibles which are off balance sheet items.
In FY 2016- 17 (Ay 2017- 18) the Indian tax authorities came to a finding that the
Place of Effective Management (POEM) of M/s. XYZ is in India.
M/s. XYZ has never furnished or filed its tax returns in India.
Would M/s. XYZ be covered under the Act? If yes, what are the consequences?
T P OSTWAL & ASSOCIATES

June 2015

43

CASE STUDY
CASE STUDY 3
Mr. Gambler was a non-resident in India from 1997 to 2010.
He accumulated UKP 5,00,000 in a bank account in the British Virgin
Islands as at 31 March 2007.
He loves gambling and from 2007 to 2014 has beeb going to Monte
Carlo to play backgammon and blackjack at very high stakes.
He has over the years lost UKP 4,50,000 of the said sum at the tables
and now wants to come clean about the whole sequence of events.
What is the amount that he should be offering in the declaration? Is it
UKP 5,00,000 or UKP 50,000? Even if he offers UKP 5,00,000 in the
declaration will such declaration be valid?
T P OSTWAL & ASSOCIATES

June 2015

44

CASE STUDY
CASE STUDY 4
Bear Cubs Ltd, an Indian Company, has certain assets in India and
certain assets outside India.
During the course of assessment for A. Y. 2016- 17, the AO discovers
that the company had investments in a Swiss Bank account which
were not disclosed in its tax returns.
The Company is ready and willing to pay tax and penalty on this asset
under the Act but wants to bring the asset into its books.
What would be the accounting entry it will need to pass? And, if it is a
persistently loss making company, will it be required to pay MAT if it
brings the asset into its books of account?
T P OSTWAL & ASSOCIATES

June 2015

45

THANK YOU
T. P. Ostwal &
Associates
CHARTERED ACCOUNTANTS
4th Floor, Bharat House,
104 Mumbai Samachar Marg,
Fort, MUMBAI-400001.
Tel No.: +91-22-40693900
Fax No.: +91-22-40693999
Mobile:+91-9004660107
Email: ostwaltp@gmail.com
T P OSTWAL & ASSOCIATES

June 2015

46