As per Circular No. 8/2005, dated August 29, 2005, FBT would be payable in the year in which the expenses are incurred. Therefore, FBT would not be payable on payment of advance towards expenses to be incurred in the future.

Hence FBT is not payable on prepaid expenses..

reviewing the same point again...

if FBT is not payable on prepaid expenses...the column 'ACCOUNTED FOR IN THE BALANCE SHEET' in the FBT Form is for what figures..?

Please clarify as i have observed in usual practice FBT is being paid on prepaid expenses also i.e. on payment basis...

Dear Friends,
What are differents aspects to be emphasised in construction industry regarding revenue accounting?

we purchased the material from the vendor." having spicific printing and recording on cd and material is used by the vendor himself and he makes the bills by charging vat on the tatal value.
whether the tds u/ s 194c has been applicable on it or not . pls give also some evidence/ notification / circular/ section / case study. its urgenct.

maens the subject matter of printing is given by us to the vendor. pls suggest now.

What is the meaning of APC charges?

Dear Friends,
Can any one give a detail procedure regarding MIS reporting contents & system?

Hi, Myself Pradip. We are paying to Security agency on contractual basis. Now on which amount we have to deduct T.D.S.? Is it on total amount (i.e. including service tax) or on basic amount (i.e. excluding service tax). Kindly help me in this regards.

Dear Experts, (our registered office in Delhi)

We have Traders in Flooring Tiles and also provide the Interiors & Decorators Service in the Delhi & outside Delhi. We have received the various input service from Delhi & outside Delhi like clearing & forwaring shipping agents, chartered accountant, telephone, courier service, Transporter (GTA) etc. and paid the service tax thereon. Please give me, advise regarding the credit taken on input service to output service (interiors & decorators)

What is 'asset denominated in foreign currency'? How should the exchange difference as on year-end date be treated as per AS 11?

About Notice under Service Tax Rule 1994 , RUle 2.

Is Service tax liability aiieses for company in India:
If they are receiving any services from Out side india in India or
If Services Availed by indian company from out side comoany out of india.

Please answer with some case studiess .

Suppose, Mr. X is an employee of A Ltd. where there is a practice to give 3 months prior notice in case an employee wishes to leave his job.Else he will be required to compensate the company for the shortfall in notice period, if any, which is treated as notice period pay.

Now Mr.X got a new job offer from B Ltd. Mr X has served prior notice with A Ltd. but he has been pressed hard by B Ltd. to join as early as possible for which B Ltd has agreed to pay the notice period shortfall compensation, if any directly to A Ltd for the early release of Mr X from A Ltd.

Now the query is:

1)who will be liable to pay tax on this notice period pay paid by B Ltd.directly to A Ltd.

2)Can B Ltd. deduct TDS from Mr.X salary in B Ltd. for this notice period pay.

The querist shall be glad if the above querries are aptly replied.