As per AS-22, Deferred Tax (Asset or Liability) should be recognised only when there is a temporary difference between taxable income and accounting income.

Now as per AS-31, The Financial Instruments need to be marked to market and recognise the anticipated losses in books. Since these losses are not recognised by income tax. This will give rise to a difference between taxable income & accounting income.

But I am uncertain about the type of difference it should be referred to - permanent or temporary.
The reason being if the actual sale of instrument results in profit, the anticipated loss becomes a permanent difference, as no loss occurs at any time and was never reversed.

At prest we book a purchase value of new mobile as expenses instead of assets booking.

Now our internal auditor recongnized as assets & statutory as expenses , b'cause statutory argue that nowadays mobile is a very changeble instrument. So don't provide it as assets.

Now tell us should we continue with expense or go with internal auditor as assets

I have a confusion....
On Sep, 2007 in AGM, M/s X & Co, is appointed as auditor till next AGM. Bal. Sheet is going to be finalized for 31.03.2008.Assume Prov for Audit fee will be Rs. 50000/- but not yet finalised.On 31.03.2008 Provision is made in books on estimate basis:
Audit fee Dr. 50000
To Prov. for Audit Fee 50000
Is it perfect?or TDS have to deduct here?

Is it compusory to deduct TDS on 31.03.08 or we should wait till audit completion and receiving of Audit Bill.
Let assume Bill received on 10.08.08 then on that date we will booked X & Co. as creditor and deduct the TDS on that date.
Am I right?

Hi.How do i know if i need to go for acturial valuation of gratuity and leave.
our organisation donot pay any fixed contributions to any fund,so it comes under defined benefit plan.so do we need to go for this AV every year or once in every 3 years..

During the course of one of my audits i came across an expenditure for the Increase in the Authorised Capital paid to MCA. In the books of accounts the same was debited as preliminary expenses. when i asked a senior CA/my Principal he said the treatment of the exp is correct but couldnt xplain the reason.

Can anyone provide me a reason for the same.

Whether a company, must, make provision for liability arise out of employee benefits as described at AS -15 or as written in AS-29 (retirement benefit as contingent liability).
If the company does not provide such liability, whether the company is liable to be prosecuted or anwerable to any govt. authority.

Company (including its Holding foreign company) has a total turnover more than 50 crores and the indian company has a employee strength of 40.

Dear Sir,

I have the following Queries

1) Suppose a Indian company (Trading Company only Commission Income from the Foreign Customers on account of Sale of there machine in India) Incurred Expenses on behalf of there Foreign Customers who has come for marketing the product in india and The Indian Company is acting as agent of the Foreign Company in india ( Expenses Like Air Tickets,Hotel Charges Car Hire Charges etc)
Expenses bills are raised on the Indian Company
What accounting entry should be passed in the books of Account of Indian Company.

2)Suppose the above mentioned Indian Company raise a Debit Note the Same Expenses Incurred above what accounting entries should be passed in the books of Indian Company

3) In Case of the above transaction is there Tax Implication applicable (FBT,IT and Service Tax)

Regards

Ravi Konda

In case of maintaining the boks of accounts of an Individual the income tax , life insurance ,and bank charges added or substract from the capital or otherwise drawings , would u please tell me what is the basic concept and reason behind this kind of treatment ?

This year I have come across sales invoices raised by Indian firm to another Indian Firm in foreign currency - mostly in US $ - in respect of sales/services made during the F.Y. 2007-08. Please note that sellers and buyers are not located in SEZ or EOU or STPI. Both are from DTA territory.

I have gone through some materials under VAT and FEMA but no where I found information pertaining to this - that Indian firm can raise sales/service invoice other than in Indian Rupees.

Please give information with supporting materal from any law/regulations governing such methods

Thanks

Can any one provide me Depreciation Calculator as per COMPANY ACT. THANKS