My client is a large power generating co. having two power
generating unit. one of the unit was declared commercial and hence
provisionally capitalised in 2005. The contracts given for
construction/ supply were not finally settled at that time and
therefore their final values were estimated and provisional
value were arrived at for capitalisation of project assets.

During the current year, the contracts have been finally closed and
actual values have been arrived at.

The final values of the contracts is less than the values at
which the projects assets were capitalised. The difference between
the final value of the contracts and the estimated value of the
contracts at which the assets were capitalised is Rs.21.18 crores
which is 0.96% of the total project assets capitalised.

my query is whether the assets would be de-capitalised and
depreciation from the 2005 to till date would be treated as "prior
period item" or it would be treated change in accounting estimate
and deprecitaion would be provided over the remaining useful life of
the assets capitalised on its reduced value?

My stand is that since it is only a change in accounting estimates
considering AS-5 and AS-10, depreciation should be provided over the
remaining useful life of the assets on its reduced value(by Rs.21.18
crores) and there is no need to recalcuate and provide depreciation
from 2005 to till date as "prior period item."

Kindly guide me.

My client is a large power generating co. having two power
generating unit. one of the unit was declared commercial and hence
provisionally capitalised in 2005. The contracts given for
construction/ supply were not finally settled at that time and
therefore their final values were estimated and provisional
value were arrived at for capitalisation of project assets.

During the current year, the contracts have been finally closed and
actual values have been arrived at.

The final values of the contracts is less than the values at
which the projects assets were capitalised. The difference between
the final value of the contracts and the estimated value of the
contracts at which the assets were capitalised is Rs.21.18 crores
which is 0.96% of the total project assets capitalised.

my query is whether the assets would be de-capitalised and
depreciation from the 2005 to till date would be treated as "prior
period item" or it would be treated change in accounting estimate
and deprecitaion would be provided over the remaining useful life of
the assets capitalised on its reduced value?

My stand is that since it is only a change in accounting estimates
considering AS-5 and AS-10, depreciation should be provided over the
remaining useful life of the assets on its reduced value(by Rs.21.18
crores) and there is no need to recalcuate and provide depreciation
from 2005 to till date as "prior period item."

Kindly guide me.

DEAR SIR..........

I AM APPEARED FOR IPCC NOV-2009.

I PLANNED TO GIVE GROUP 1 ONLY AT THIS ATTEMPT.. SO IS IT COMPULSORY FOR ME TO COMPLETE MY IT (COMPUTER TRAINING) AND ORIENTAL COURSE BEFORE APPEARING FOR EXAM...OR I CAN COMPLETE IT AFTER CLEARING MY FIRST GROUP OF IPCC?.....
PLS CLARIFY ME..........

WAITING FOR POSITIVE REPLY...

author : Ishant Juneja
Posted On : 1/24/2009 5:34:13 PM I have cleared my CA-Final examinations on Nov.'08. I am getting
the oppuurtunity to carry out my remaining articleship as industrial
trainee. But my training is now remaining for 7 months without
extension. On the other side its with extension is more than 9 months.
Can i join industrial trainig. Then after extension it wil be
complteting at the end of October. Will i eligible for Campus
placement which will be held on September and October'09.
Kindly update me

author : Ishant Juneja
Posted On : 1/24/2009 5:34:13 PM I have cleared my CA-Final examinations on Nov.'08. I am getting
the oppuurtunity to carry out my remaining articleship as industrial
trainee. But my training is now remaining for 7 months without
extension. On the other side its with extension is more than 9 months.
Can i join industrial trainig. Then after extension it wil be
complteting at the end of October. Will i eligible for Campus
placement which will be held on September and October'09.
Kindly update me

author : Ishant Juneja
Posted On : 1/24/2009 5:34:13 PM I have cleared my CA-Final examinations on Nov.'08. I am getting
the oppuurtunity to carry out my remaining articleship as industrial
trainee. But my training is now remaining for 7 months without
extension. On the other side its with extension is more than 9 months.
Can i join industrial trainig. Then after extension it wil be
complteting at the end of October. Will i eligible for Campus
placement which will be held on September and October'09.
Kindly update me

MrX is a civil Contractor who carries constructing dams,roads,etc.He gives labour Contract to Mr.Z.My question is wheher TDS to deducted as contractor or sub contractor.My principal is saying that TDS to be deducted as subcontractor.Whether TDS to be deducted as subcontractor or contractor.IF there is any circular or notification please enclose it.

Please can u tell me how to subscribe to free sms alert facility of Mr Purna c on amendments in Income tax,Indirect tax and service tax.

Company purchased a building. Agreement for purchase does not include a separate value for Building and for land on which it is constructed. Only one combined value is mentioned in the agreement. Now my query is that,for income tax purpose, on what amount i should claim a depreciation? on total agreement value or on only the value on building and not land? if only on value on building, then how will i bifurcate the value of land and building? is there any case law for the same?

FIXED DEPOSIT MADE FOR ONE YEAR IS ELIGIBLE FOR 80C