As part of the contracts that we execute for implementation of projects for various clients, we need to essentially submit the following Bank Guarantees (BGs) to them;

 To draw advance from the client, for which a BG of equivalent value is submitted, normally valid till the adjustment of all advances from the running bills.

 For covering performance of the completed project during the warranty period, which could range from 12 to 24 months, and this is normally linked with the release of the last 10% payment of the contract, payable on submission of the BG.

In both the above cases, the clients ask for a claim period after the expiry of the validity of the BG, so that in case there are any claims from them, this could be raised during the claim period. The claim period, as stipulated by the client, normally ranges from 3 months to 6 months.

So far we had been submitting BGs in both the above categories, to our clients, incorporating the clauses as worded by the client and generally accepted by the banks, (in some cases with minor modifications). The validity and the claim periods mentioned in the BGs were as per the stipulation of the client, as mentioned in the contract with them.

Recently, however, our bankers have been demanding that irrespective of the claim period asked by the client, the BGs would be issued by them with a claim period of 1 year minimum. On seeking clarifications from them, they have informed as below:

“Department of Financial Services, Ministry of Finance , Government of India vide their letter dated 24.01.2013 had informed that the Banking Laws (Amendment) Act came into effect w.e.f. 18.01.2013 as regards to change in Limitation Act as per India Contract Act, 1872 u/s 28. As per the new Act the minimum claim period is 1 year irrespective of the expiry date.”

While we are not very sure whether the bank is acting on the correct premises, (since we do not have a full picture of the related provisions), on checking with other banks, we gather that no such measure of charging for 1 full year of claim period, even if the beneficiary needs a lesser claim period, is being enforced by them.

Prima facie this stipulation seems illogical, since besides making us unnecessarily pay commission and block funds for a longer period, it also exposes us to unforeseen liabilities and risks, because the client is being given an encashment option even beyond the period sought by him.

We would be obliged to get an informed view on this to take it up further with the bank.

PK GHOSH
BHUBANESWAR

Dear Sir,
one is my client have consulting services starting from 1 jan 2013 and now he converted that company into Private limitted..and closed first co.
so sir what is accounting entry can i made
i mean i need to start new company from 1 jan 2014 ..and sir can i take previous co.
closing amount in this co. as a opening,

I want information about ICWA course.

I am graduated & doing M.COM.
is there like CPT or CAT exams to be apperar?

please guide

In case of e-filing of salary returns, one is not required to submit Form 16. Then how can IT dept cross verify the information mentioned in Tax Return is Correct. Does the IT Dept already has the information mentioned in Form 16.

DEAR SIR,
PLEASE HELP ME

WHAT IS THE PROCESS OF REGISTRATION IN ATC COURSE AFTER B.COM OR M.COM?

CAN I REGISTER DIRECT IN ATC COURSE AFTER B.COM OR M.COM?

PLEASE TELL ME

An assessee is an Information security consulting firm, wherein, we help organizations to protect their data, applications, network and infrastructure against hackers and intruders. It conducts a security audit and provides its report.

What is the category under which Service Tax Registration is to be obtained?

Dear Sir

I M Bcome Graduate in 2006.

Currently i m working as Accounts manager.

In accounting my total experience is 8 years

i want do some extra study (part time)

pl guide me which course to help me to more grow up

Regards

Poonam Ahire

Hello,

I am HR at a software firm, it is a proprietary firm owned by a single person with few employees.

The firm develop custom softwares, turnover is less than 1 crore, we pay 58000 per month building rent and spend about 3 lakhs monthly on online advertisements, I think we don't fall under tax audit(Section 44AB). Someone suggested us to start paying TDS on rent and advertisements, earlier we were not aware of section 44AB and started paying TDS from last three months.

My Question: As we think that we are exempted under 44AB can we discontinue paying the TDS now ? If yes is there any specific procedure for that or just simply stop paying, please suggest.

Thanks in Advance
Raman

Can any one tell me in case a ca does a tax audit of a particular assessee and in future the asessee gets a notice from IT department for scrutiny on the basis of that particular audited BS and PL then whether that CA is bound to appear before the IT department who has done the tax audit or the assessee can appoint some one else to do so ?

Centralized registration if i am already registered Hi Everyone, I have a query regarding centralized registration. Actually I am a teacher providing coaching classes from my coaching center at Kinsway camp, New Delhi. But after few months I switched my coaching to Preet Vihar, but my all service inputs are still in the name of my old office i.e. Kingsway Camp. Now I have started another branch which is at Laxmi Nagar, New Delhi. So my Question is that: 1. I am already registered under service tax so now How could I apply for centralized registration, procedure and documents required? 2. Before being centralized registered, Would I have to surrender my current single premise registration? 3. I have taken all inputs on my old address and my new address is still not mentioned anywhere in deptt. records while I am providing coaching from my new address since last 9-10 months. So what would be the impact of changing the address on inputs credits? Would it be reversed? Waiting for your kind suggestions. Thanks in advance.