Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Accounts

CA Final 804 views 1 replies

ekta

student

623 Points Posted on 06 October 2012

1.what is liability held for trade mean?Liability can be sold in stock market,how is this possible please give some examples if possible?

2.Inventory comes under head current assets if realisable within 12 months...but if its doesnt get realised within 12 months then what will be the treatment?

3.why is donation disallowed in computation of taxes on income under AS 22?i know it wont be allowed or disallowed in future but what is the logic?

4.Provision for legal damages,bank interest charges,service tax why are they disallowed in computation of taxes on income under AS22....i know it wont be allowed or disallowed in future but what is the logic?

5.why is our accounts treatment different from tax?

Replies (1)

archana bakshi

Student

227 Points Posted on 11 October 2012

since donations wont be allowed or disalowed in future that is why it is a permanent difference.bt ofcourse it is a difference as for the company it is an expense,bt income tax wont allow it(as per the Income Tax it is not an expense worth giving deduction).For the rest of ur questions i will answer u asap.If ur query is still not resolved thn pls make it more elaborate.