A Ltd. is a government company which has declared the dividend on its 4% Cumulative Preference Shares in the AGM held on 09/03/2010 and diposited the dividend amount in the dividend A/c on 14/03/2010 (within 5 days from declaration). On 16/03/2010 company received a letter form the Central Government directing the company not to pay any dividend to the shareholders because Central and State Government is providing grants to the Company for specific purposes.

Considering the directions of the C.G. Board of Directors in there meetind held on 22/03/2010 decided to write a letter to CG mentioning the fact that company has already declared the divided and it is bound to pay dividend within 30 days from the date of declaration.

Board of directors also decided not to pay dividend untill the further clarification of CG in this regard.

Now my question is (it is very unlikely to receive the clarification before the expiry of 30 days) in such situation after the expiry of 30 days whether compnay should hold the dividend amount in the dividend account or it should be transferred to the unpaid dividend account.

Please also advise me whether the decision of Board of Directors to hold the payment of dividend is correct.

Hi,

This is a practical problem I am facing while preparing the financial statements of a foreign entity. "A" company received share application money of USD 30,000 which is inclusive of share capital and share premium in March 2009 in its USD bank account. The allotment of shares was done in April 2009. The share certificate states that the issued shares are 1,000 shares of EUR 1 each and a premium of EUR 23 per share. The USD/EUR exchange rate in March 2009 was 1.25 and in April 2009 is 1.50. The reporting currency is USD. Please suggest me on 2nd entry:

1st journal entry: (On receiving money in March 2009)
Bank Dr USD 30,000
To Share application money A/C USD 30,000

2nd journal entry:(On allotment in April 2009)
Share application money A/C Dr USD 30,000
Currency exchange results A/C Dr USD 6,000
To Share capital A/C USD 1,500(1,000*EUR 1*1.50)
To Share premium A/C USD 34,500 (1,000*EUR 23*1.50)

Do I need to recognize the currency exchange results on allotment of shares. Kindly advice.

whether a partnership firm can take agricultural land ?

is it necessary that one or more or all of the partner should be the registered agri. land holder ?

How shuold the invoked Bank Guarantee accepted by the Bank but not paid to the beneficiary on the date of Balance sheet be reflected in the Balance Sheet of a Bank.

HI
the company entered in to a contract to provid a copying machine to other comp and charges 4000/month and it charges service tax also eventhough only provides a machine not any men.is service tax is chargeable ?
thank you.

how can a person getting salary in cash can file his/her return since in this case he doesn't receive form 16 from the company.

how is it possible to file the return? please suggest.

Ravi

Dear friends,

There is any sofy copy of Diu Vat Act. Pls. if possible then share this file.

Thanks

With regards
Paras Kariya
Law Student
Junagadh

can firm get lower deduction certifiate for TDS?

My client is going to execute of works contract work at Goa such as repairing & construction of the factory premises etc worth Rs.2 crores. Please let me know
1. What rate of tax he should charge to his cusomers?
2. whether he is entitled for any input Tax Credit?

Thanks in advance

We have taken a property on rent . Pls advise the applicability and rate of deduction of tax in the following case:-

1. If maintenance charges paid to landlord( if landlord is individual, company, co-owner)
2. If maintenance charges paid to housing society