Our company provides commission to foreign agents for getting the construction contracts abroad. As per the agreement, whenever Running Bill of contract invoice in respect of such oversees contracts are raised, the agreed percentage of commission on contract value is accounted for on the proportion of such RA bill. Such commission is accounted for on the basis of current exchange rate basis.

However, at the time of payment of such commission, the company has to pay more and sometime, less also. For example, the company has booked sale invoice of Rs. 10 lacs dollar upon which commission was booked @ 5% viz. 50,000/- US dollar @ Rs. 45 per USD. Therefore, the commission was booked at Rs. 22.50 lacs in accounts. However, at the time of actual payment of such commission, the rate of USD was Rs. 46 and therefore, the additional Rs. 50,000/- was accounted for under F/E fluctuations A/c.

Now, since such commission is covered under business Auxiliary Service, the company will have to pay Service Tax U/s 66A of Import of Service.

Please reply whether the company should pay Service tax on Rs. 22.50 lacs only or should pay on additionally paid Rs. 50,000/- also. What would be the case, if the rupee improves against dollar and company pay commission of Rs. 22 lacs @ Rs. 44/- per USD. In such a case, should company pay Service Tax on only Rs. 22 lacs.

Please study and reply the same and substantiate your reply on the basis of Rules or regultations issued under Service tax or any cout pronouncements.

i gave my pcc exams in nov 2008 and could not be passed in one attempt
now i need for leaves for my further preperation of exams
so i want to know that if i will take leave then it will impect on my final attempt
can i gave my final attempt after taking leaves more than 1/6th as per decided by ca regulations in nov 2010

Deductee of Tax at Source maintains accounts as per the Cash System of Accounting and fee received for services rendered during FY 2007-08 is received in FY 2008-09. Tax Deducted at Source is also booked in FY 2008-09 while TDS Cerificate has been issued by the deductor for the year 2007-08(AY 08-09).

In which year the deductee may claim the adjustment of TDS?

Please provide me with the information related to the procedure of revaluation of answer sheets of PEE-II. What is the Fees for Revaluation per copy and what is the time period within which i will get my revaluated result? If i go for revaluation then whether it will be possible for me to get the result of revaluation before the expiry of the last date of submission of examination form for PEE-II? it is really precious for me as May 2009 is going to be the last attempt for PEE-II Exams. So please guide me and please do reply to my question as early as possible I will be really Thankful to you.

Thanks

In a cash system of accounting expenses like purchases are written off at the time of incurrance. Now, certain stock of raw material is available as on the last day of the year. Whether such closing stock is to be booked and yearly profitability is to be derived thereafter or not?
In other words: whether closing stock is recognised in cash system of accounting or not?

respected sir,
my name is PREM.i m PCC (MAY09) student.

now days i m tense about my studies.i unable to prepare for both Groups In PCC Bcoz my sisters wedding will there & i also hv my S.Y.B.Com Exams...for t8 my 1.5 month will not use for PCC studies.
so, plz suggest me in which group i hv to giv stress Group 1 or Group 2.

Thank you.

Take a case:
A father(say Mr.x) had a building(200 sq feet) and later on he died.He had 5 children(all major married) including 2 married daughters and further one of his sons had also died leaving behind his spouce and two children(major unmarried boy and major married daughter).
Mr X. didn't have any will. uptill I know
there are 8 legal heirs and property is to be divided into 6 shares:-
1)Mrs.X for 1/6th share
2)Mrs x's 4 children for 1/6th share each
3)spouse and 2 children of expired son of Mrs.X for 1/6th share (to be divided among three equally i.e 1/18 share of each)
Am I right?
If not please let me know about the right procedure and also any reference of any act or provision if possible?
Thanks in advance!

hi.....sir...
i had complited in third attempt on nov-2007....those marks are below....
group-1:
accounting - 60marks
auditing - 40marks
business laws&corporate law- 57marks
total - 157marks
i passed group -1....

group-2:
costing & fm - 61marks
incometax&cst - 47marks
information technology - 39marks
total - 147marks
so i got exemption in cost& fm....

again i wrote exam in may-2008..those marks are below....
incometax&cst - 61marks
information technology - 29marks

so i didnot get exemption....

again i have writen exam in nov-2008..those marks are below....
incometax&cst -63marks
information technology -40marks

so finally i passed ca pe-2....in nov-2008 exam....
so could u please advice in which ca firm i am suitable to do articleship...is am i compitent to do in multinational company..like..deliete...pwc...kpmg...
and advice me in which ca firm is in vacancy in hyderabad to do articleship...

Circulars or Clarifications issued by the CBDT are binding only the Income Tax Authorities? or also the Assessees?

Please give example.

If, when rights to purchase the shares are issued to existing share holders,
what should be the treatment if,
rights are sold to any other person---whether to be treated as income directly and credited to profit&loss a/c (or) to be credited to the cost of investments already existing..........????