I am doing my MBA project in final accounts in a firm which does business on consignment. They purchase a stock on consignment at higher value than their sales value which they sells to their customers.
The difference (sales value-purchase value) amount is being reimbursed to them by the company from whom they have purchased.

In their trading accounts they have shown as nil gross profit. their calculation was as follows
Debit side
Purchase 1000 pcs @ Rs. 1250 = 12,50,000
(-) Purchase diff(of sales qty)
350 @ rs.250 = 87,500
TOTAL DEBIT BALANCE = 11,62,500

Credit side
Sales 350 pcs @ Rs.1000 = 3,50,000
Closing stock
650 pcs @ Rs.1250 = 8,12,500
TOTAL CREDIT BALANCE = 11,62,500

HENCE Gross profit is NIL

NOW I WOULD LIKE TO KNOW WHETHER THEIR WAY OF PRODUCING ACCOUNTS IS PROPER

hello everyone,

Can some body tell me whether there is any penlty for concelment in the following case:-

Suppose Mr. A never file return under wealth tax act. He receive a notice from assessing officer for filling of return. He filled return in response of notice.

Now assessing officer want to include all assets for penlty on concelment of income. Is Assessing officer is right?

Also give any circular or case law if any.

if any person forget to carryforwrd and to take setoff in last ay of house property loss what wiil be the solution? can i carryforward the loss in current ay? can i take a setoff in current ay? plz give suggestion.

assessee had already shown credit of Rs. 1,80,000 in his capital account for the year 2006-07 and on scrutiny declared such credit as gift received from non-relatives by submitting all the relevant documents as required by officer. AO make addition of such credit as gift u/s. 56(vi). Now is it the case of furnishing inaccurate particular of income entail penalty u/s.271(1)(c) ?

Sir,
A person has given the donation to a trust under the 85% Scheme.From such amount Trust purchase a Building for social purpose.can Trust can claim depriciation on such building.If yes,please provide appropiate judgement or any provision.

Can anyone give explnatory note on the section 195 amedment on issue of For. no.15CA and Form no.15CB ?

Whether these forms to be issued in all cases or only the cases of TDS liability ?

I have received the reply from Shri Aditya Maheshwari . That means the forms should be subitted even there is no TDS liability i.e. even in the case of purchases and sales ( exports and imports ) of materials where no TDS liability arises, then also Forms 15CA and Form 15CB should be submitted.

Hello Friends, i want a clarification on the following issue:

" Wether payment to a party Rs.30000 through net banking would be disallowed"
Please explain this.

a house property give on rent @ 100000 p.m.
by me and i also charge service tax@ 10.30% on it rent amount. lesee party is corporate assess. pls tell me wht amount of tds in this case.... i think tds rate would applicable 15% in this case..........?

WE HAVE PURCHASED FURNACE MACHINE FROM UK AND INSTALLED.AFTER SOME TIME THE SAID FURNACE MACHINE DAMAGED BY FIRE.FOR THIS THE ENGINEERS FROM UK CALLED FOR SERVICING THE FURNACE ON PAID UP SERVICES.THE CONCERN HAS NO PERMANENT ESTABLISHMENT IN ANY PART OF INDIA.WHETHER TDS IS APPLICABLE U/S 195 ON PAYMENT ? OR THE SAID CONCERN IS NOT TAXABLE UNDER BUSINESS INCOME UNDER PARA 1 OF ARTICLE 7 OF DTAA OF UK FOR SERVICES OF MACHINE.

I want to complete details of all deductions with allowable limits under this sections

Will anybody be able to provide the needful



Thanks in Advance

Tribhuvan Purohit