Accounting treatment of Depreciation and TDS
This query is : Resolved
Gopinath.C.S
(Querist)
21 July 2008
Can any body help me out for the following:
'A' is the Private Company has got Sub Contract for some work from the Main Contractor 'B".
For Executing the work The Main Contractor supplied some Plant & Machinery which is Purchased by the Main Contractor.
After Completion of the Work( Say after 5 years) all the Plant & Machinery will become the Subcontractor's (i.e A) Assets, for this The Main Contractor Deducting Principal and Interest amounts from the Running bills raised by the Subcontractor.
here are some observations:-
1). The Invoices of the Plant & Machinery which is supplied by the Main Contractor still in the name of the Main Contractor.
2). The Ownership of the Assets also not transferred
My query is :-
What is the Accountability treatment of Principal and Interest Payments and what about the applicability of the Depreciation.
Whether any TDS will Applicable for the above transactions.
'A' is the Private Company has got Sub Contract for some work from the Main Contractor 'B".
For Executing the work The Main Contractor supplied some Plant & Machinery which is Purchased by the Main Contractor.
After Completion of the Work( Say after 5 years) all the Plant & Machinery will become the Subcontractor's (i.e A) Assets, for this The Main Contractor Deducting Principal and Interest amounts from the Running bills raised by the Subcontractor.
here are some observations:-
1). The Invoices of the Plant & Machinery which is supplied by the Main Contractor still in the name of the Main Contractor.
2). The Ownership of the Assets also not transferred
My query is :-
What is the Accountability treatment of Principal and Interest Payments and what about the applicability of the Depreciation.
Whether any TDS will Applicable for the above transactions.
Taranjit Singh
(Expert)
04 October 2009
Hello.... Is this an old query still pending? Please send me a PM if yes..
Taranjit Singh
(Expert)
04 October 2009
Hello.... Is this an old query still pending? Please send me a PM if yes..
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