16 November 2011
HEAD OFFICE IN DELHI AND BRANCH OF ITS IN PUNE.ALL THE WORK OF COMPANY IN DELHI ALL EXPENSES MADE IN DELHI LIKE AUDIT FEE,DIRECTOR SALARY AND ETC.
I WANT A TELL U ONE THING FOR PURPOSE OF INCOME TAX I WILL DISTRIBUTE ALL EXPENSES IN SALES RATION OF BOTH HEAD OFFICE AND ITS BRANCH. . . .
CAN I DO?
AND WHAT IS THE GUIDELINE OF ICAI IN RELATION TO HEAD OFFICE EXPENSES DISTRIBUTED IN SALE RAITO
16 November 2011
As i understand, there is no requirement to file seperate returns for headoffice and branches and hence only one return will be filed and no need to allocate the expenses as the return will be based on consolidated figures.
You have not mentioned if you are getting any tax exemption viz. Sec. 10A, 10AA,80IB etc which requires to maintain the records to calculate the net profit of the operations from such locations/from specific business.
16 November 2011
LET US PROFIT FROM DELHI UNIT 2500000(STPI UNIT) AND PUNE UNIT 500000(NON STPI) CAN I CLAIM AUDITOR FEE DIRECTOR SALARY IN PUNE UNIT WHICH BASES.
17 November 2011
Yes, you can allocate the Directors' fees on the basis of time spent by them on both the units.
If that is not practical and no other appropriate basis is available, the sales of both the units can be considered as the basis for allocation of all expenses.
CAclubindia
