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Income Tax - Highlights / Catch Notes

Home Highlights January 2016 Year 2016 This

Expenditure incurred by the assessee with regard to payment of ...

Income Tax

January 4, 2016

Expenditure incurred by the assessee with regard to payment of logo charges - payment of royalty and logo charges are revenue in nature, therefore, has to be allowed while computing the taxable income. - AT

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  1. Royalty payment - in the nature of expenditure incurred for carrying on business with available know-how - revenue expenditure - HC

  2. The expenditure incurred by the assessee towards royalty and fee for technical assistance in pursuance of the licence agreement were revenue expenditure and not capital...

  3. Royalty payment - revenue expenditure or capital expenditure - payment is purely revenue in nature, as they provide for payment of license fee for manufacture and sale...

  4. Nature of franchise fees paid - capital or revenue expenditure - Right to use the trademark, domino’s name and logo – Exclusive license – Held as revenue expenditure - AT

  5. Payment of logo charges - revenue v/s capital expenditure - Usage of logo by the assessee is only for displaying it on the product manufactured i.e. rubber...

  6. Die tooling charges as revenue expenditure or capital expenditure - It was held to be revenue in nature since the expenditure were incurred for modernization of existing...

  7. Royalty & lump sum fee – The payment of lump sum fees for the technical know-how and the royalty is allowable as revenue expenditure - AT

  8. Expenditure incurred by the assessee company on payment of premium for purchase of its own shares from warring group of shareholders - expenditure is revenue in nature -...

  9. Royalty payment as 3% of the net ex-factory sale by the licensee/assessee - the expenditure has to be treated revenue in nature - HC

  10. Revenue expenditure versus capital expenditure - expenditure incurred on ERP Software – allowed as revenue expenditure - AT

 

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