ABC ltd. purchased an ERP package from Xyz in the year 2008. Entire package has 10 different modules like pay roll, accounting (for financial Accounting) stores, merchandising, job-work sales & stock accounting etc. Each module will take at least 6 to 8 months to customized & developed different reports. Vendor is customizing the different module one by one. On the completion of one module he takes up next module for implementation & customization. Vendor is customizing implementing different module with the help of his team of 4 persons & with the help of staff members of the ABC ltd.
Vendor’s billing pattern is as follows:-

i) One sales invoice he raises for complete ERP package and charge the Vat &/or CST accordingly and;
ii) Another monthly bill he raises for the implementation & customization of particular module.

My query is that:-

(1) Should the ABC ltd. capitalize the customization & implementation monthly bill
or treat it as the revenue expenditure.
(2) Should it capitalize the software module wise & claim the depreciation accordingly since the individual module can be put to use independently also.
(3) Should ABC ltd. capitalize the fist bill as “SOFTWARE WIP” till the entire package gets customized because the package will be fully utilized after the lapse o 3 to 4 years

DEAR EXPERTS,

our company want to issue form 16 to employees, as the time limit is only 2.5 months so we are requiting employees to declare there details for form 16, eg. rent paid, 80 c deductions, i want to know the required documents to be collected from the employees before issue.

THANKS AND REGARDS
PAVAN KS

Dear All

I am presently working in an Australian MNC company. The Company has fixed same basic salary for all the employees ie.some employees are getting Gross salary of Rs. 15000/- and some employees are drawing salary of Rs.50000/- or more. But the company has fixed basic salary of Rs. 6500/- for all the employees.

Please let me know is there any hard and fast rules for fixing basic salary for calculating TDS on salary. Because i have calculated TDS on salary of all employees fixing Rs. 6500/- as basic and others as allowances. If there is any legislative problem in this kind of salary structure then plz let me know.

Thanks & Regards
Naveen Sharma

Dear Sir,

Our company is doing local as well as export sales of garments. When we apply for vat refund for export sales, sales tax authorities claiming that they need consumption details related to export & local separately as well as stock figure also. But we didn't maintain separate records for the same. Is there any simple procedure to claim for the same.
Thanks.

i have joined my atricleship traininig from september 2,,but in december 3 i have terminate from my ongoing firm ,,,during these period of three month i have taken a leave of one month, now till now i haven't found any article ship training ...and my attempt is on may 2010,,do i be eligble to appear in may attempt,, if not what should i do plz ans this question...

i want to know why we open cc A/C how its transaction is processed how can we apply whats its facility & whats its disadvantages

Dear All,

I need your expert suggestion regarding following matter at our one of client place.

We have a client engaged in manufacturing of Wires & Cables, Fittings (Harness).
They have two manufactring base one at Mahape- MIDC & other one at Taloja-MIDC.
They are transferring fully manufactured wires from Mahape to Taloja for manufacturing harness therefrom by fitting additional socket also they are clearing these Harness from Taloja pland itself.
My query is whether they are require to charge Excise Duty on such transfer. If not then pls let me know what are the provisions, rules under which we can transfer these goods without charging duty thereon and also procedural aspect for this with excise authorities,if any.

Regards,
Prashant Chavan.

A absent from service for four months, didn't receive salary and wants to continue his PF. He request the employer to contribute his PF and A gives cheque to employer for the amount of employer and employes contribution.

Can employer do so?

if yes how can fe file return of PF (i.e in the salary column nil salary and pf contribution is there.)

What is the method to calculate output vat on a contract in which material used includes both 4% and 12.5% materials and How much labour is to be calculated. Further VAT deducted at source will be from the total contract amount or from the amount after deduction labour. The contract is in respect of a building.The conractor and contractee both are in punjab.
Please guide me what and how to do.
Thanx

Hi all,

In a case,where a contractual agreement is made for interiors of an office space and the vendor charges VAT on 80% of the contract value(that being the charges for material)and also charges service tax on the entire contract value.

On which portion is the TDS charged? whether on the entire contract value or the balance 20%?

If on the 20 % only,then why does the vendor charge ST on the whole contracted value?

Kindly explain with circular/rule