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

Avon Products Research Paper Example | Topics and Well Written Essays - 1500 words

Avon Products - Research Paper Example In order to adapt to the fast changing world that will ensure that it will thrive in business, there are different issues that need to come into consideration so that the company does not struggle unnecessarily to survive (Scheiner, 2008). Changes in an organization depend on differ factors that regulate the different things that cause determine its performance and it may include the nature of business, the change itself and the people that are involved in the change. Various things prompt change and therefore, organizational change can be explained from different perspectives according to different models of change that could be relevant in the organization and its environment. In organization of a company, need for change can develop as a result of increased need change on the environment, increased in the number of workers in an organization or the change of the organization strategy that triggers a change in involvement of different people in the organization to the process of ex ploitation of the environment. On the other hand, a change in the organization may result from a change in the organizational management team, which may mean introduction of a new member or more than one in it. In Avon Inc, there were changes in the leadership of the company in which the chairman’s post came under another person who had different perspective of the business than the former CEO. This is one cause of the change that happened in the company in which different strategies of operation came up for the company to ensure that it regain its success in the business. This meant that the employees of Avon Company had to adjust to the new ways of organization of the company as could be directed by a new management leader, which would mean that all the systems would feel the effect. The new chairman in Avon Inc bore the responsibility to instill different modes of motivation and commitment to the organizational change in the company so that all of the employees could maxim ize on their participation and ensure productivity (Bosworth, 2005). Avon experienced stiff competition from other rival companies like the L’Oreal and Revlon who were being better placed in the market and were taking the advantage of the failure of the company. This triggered change in Avon Company because the rise of competitors in the threatened its profitability and created a need to develop a means to address the rising change in the organizational structure. To respond to this issue, people went into the different issues of implementing the changes in the organization so that it can improve the effectiveness and the efficiency of the company’s systems of productions (McCracken, 2006). Another thing that necessitated change in Avon Inc is the withdrawal of the partnering organization that led to reduction to the company’s potential to win its former customers and this made some customers to defect from the company. For example, the withdrawal of Coty from t he business with Avon Inc led to a reduction in the shares returns which reduced by more than a quarter. This meant that

Portrayal of Women in Dreamgirls 2006 Movie Review

Portrayal of Women in Dreamgirls 2006 - Movie Review Example The plot of the movie is set in the period of 1960s and 1970s. The movie narrates the lives of three young promising and talented African American women who formed a music trio The Dreammates with the dream of becoming famous musical group. The three women Effie White, Deena Jones and Lorrell Robinson were the members of the musical group where Effie acted as the leading singer. The singing talent of the girls was discovered by the record executive Curtis Taylor. He offered the girls to become back-up singers for headliners James Thunder. He worked hard on the grooming of the girls and takes the control of look and sound of the group. He soon started feeling closer to Deena and based upon his romantic interest he insists that Deena should replace Effie as leading singer of the group.They underwent a conflicting situation over the issues of change of group name and substitution of lead singer. The record executive insists that they should change the name of the group to Dreams because this name seems to be more music friendly. Furthermore, he also wants to see Deena as the leading singer of the group. The movie shows the three women having the realization that they have to pay high costs for getting their dreams come true because the fame and fortune come to them in exchange for much higher cost than  their imaginations.