My client is developing a SEZ for which he is taking the assistance of a co-developer who would administer the whole project. The construction would be complete in 3 years after which the luxury apartments in SEZ would be sold out. During construction period the client would pay 5% of project cost to the co-developer. What would be the treatment of 5% of project cost paid during construction?Whether it should be included in cost of project which would be shown as Capital WIP during construction period and later as it is it would be debited to P&L A/c at time of sale.

Dear All,
Please let me know the accounting effect of the commission paid on sales to a distributor...

how the same is to be disclosed in the financial statements, basically its presentation. Currently the said commission is added in my sales bill itself coz i need to take a transaction value for excise purpose in my sales bill.

According to my point of view the same is not my income and hence should not be added to my sales(income)afftecting my gross profit and overstatement of my income(for presentation in my books).

Kindly advice me on the above matter ASAP..

Regards

we A limited company falling under criteria of "level 1" enterprise of accounting standard. we have three subsidiary. our company is not a listed company. whether it will compalsory to prepare audited Consolidated Financial Statement? under which law?
Further we have also a foreign subsidiary as on 31st dec 2009. But we will divest our investment before 31st March 2010. What would be implication in our accounts for that foreign subsidiery for the FY 2009-2010?

Can any one please tell me why in preparing abnormal loss account, the account is credited with cash (as sales proceeds) multiplied with scrap value of "normal wastage". and abnormal gain is credited with normal wastage- with the amount arrived by- abnormal gain (in units multiplied with scrap value of "normal loss"?

can any one please teach me the logic behind this?

Hi,
Any one can explain entry?
Advance tax 5000
TDS 3000
Provision tax 6000
(1) If actual tax is 30000, (2) If actual tax is 10000
then what entry should be done.

when is revenue recognised in a construction company? is it after completion of construction or as and when the expenditure is made? pls help me out.its urgent.

Dear All,

If book value of a commertial property (owned by a Pvt Ltd) is 50 Lacs and rent per month is 5,80,000
it means total rental income is 69.60 Lacs

then how in effect in

1. INCOME TAX
2. Wealth Tax

Humbly request you all to please advice

Dear All,

I need to know the margin percentage,
cost price 0.070 and selling price .800 how to calculate Margin percentage.

Profit is ( .070 - .800)= 0.730

Margin per is 0.730/.800 = 91.25%

is it correct

Dear Friends
I am working in company which have two manufacturing Unit. Out of These Two one unit in situtated in Specified area and its profit is 100% exempt from tax US 80IB. Company is paying MAT on its profit as its one unit profit is 100% exempt. Company has track record of earning profit and it is estimated that it will earn profits in forseeable future to.
I want to know how to treat MAT credit available for compulation of defferecr tax asset/liability.
Kindly clarify.

Can someone pls tell me how they calculate/estimate work-in-progress or unbilled revenue as per the requirement of As-7, for software development companies?

Contracts are both T&M and Fixed contracts.