Whether Professional Firms have to maintain their books of accounts on Cash system or Mercantile system?

Dear Sir,

i want to know,in a manufacturing unit if i purchased raw material which is exempted from vat,can i take credit of vat from those bill(we are selling goods in 2% vat)

what is the date of capitalisation of fixed asstes in case of plant & machinery purchaed through loan from financial institution

Hi all,

"Treatment of Depreciation on Building Demolished"

> XYZ & Co is a Partnership Firm.
> It had an old building whose book value was Rs.715000 as on 31-03-2008.
> During FY 2008-09, it bought a land nearby the above building and it started demolishing the old building for constructing a new building for its hotel business.
> During FY 2008-09, half of the old building was demolished and remaining half in FY 2009-10.
> Construction of new building was also completed in FY 2009-10 and it started its operation in FY 2009-10.
> Scraps of old buildings like teak wood, iron pillars, etc were used in the construction of new building.

Note: New building is constructed on the new land as well as on the land of the old building.

Kindly tell me the accounting treatment and depreciation treatment for the above transactions as per AS and IT Act.1961.

A co., during there import of goods, made advance payment to the creditor and when it receive that goods, it made a journal entry like
Diff. in exchange
To purchase
or vice versa for exchange diff.
whether it is right or wrong, if wrong then what will be the treatment?

Also in another cases whemn it made payment to the party then also it made above entry, so plsease resolve this also.

Dear all,

we have imported goods from china. we paid rs.35000 through DD in favour of clearing & forwarding agent towards agency fees, stamp duty, documents handeling charges etc.
my query is, which ledger is to be debited?
whetehr tds need to be deducted?

Thanks in advance.

wtih best regards,
Sushil.

a newly established company , any expenditure incurred inrespect of testing machinery and any other expenditure incurred whether provision can be able to made in respect of such expenditure ,if there is operating loss if not please specify with provision

i want to know the,how to create the provision for taxation entries at the end of the year.can any body clear my this query with example of any new company?

I have a doubt regarding ESI and PF.

If a employee's gross salary is 8000/- for that PF is 780/- @12%(6500 Max Limit) and ESI is 140(@1.75%).

my question is if he take leave for 18 day then his salary becomes 3204/-(8000/30=267. 267*12=3204).
Now on which salary we have to deduct the PF and ESI is 780/- on gross salary or 384/- on

Dear Sir,
I want to know that a company has charged 2% against Form 'C' in a bill to his buyer . Suppose the buying company did not give 'C' Form. Whether the selling company will charge balance 2% or total 4% of the Taxable goods.Then the procedure how to charge the tax to the selling company?