I would like to know as to the basis on which a company decides on whether to capitalise an expenditure or not. The normal stance is that where an expenditure is likely to give an enduring benefit, it is to be treated as Capital and where the benefit does not extend beyond a year, the same can be charged off in the same year. The query is whether this basis is as per Accounting Policy of each company or is it governed by the Accounting Standards issued by ICAI?

Case: An Housing Project consisting of majority of flats within 1000 sft / 1500 sft and some exceeding 1000 sft / 1500 sft, which fulfills all other conditions as stated u/s 80IB(10) of the Income Tax Act, 1961. The cost incurred and profit earned for the flats within 1000 sft / 1500 sft and for flats exceeding 1000 sft / 1500 sft are clearly identified. Form No. 10CCB for flats within 1000 sft / 1500 sft has been certified by Chartered Accountants for tax exemption u/s 80IB(10) on profits earned from sale of flats of 1000 sft / 1500 sft.

Q1. Is tax exemption for this case allowable by the IT Department? If yes, is it on the actual profit or proportinate profit for the flats within 1000 sft / 1500 sft?

Q2. Is there any Departmental Clarification or Juducial Pronouncement regarding allowability or disallowability of profit for the flats within 1000 sft / 1500 sft, in this case?

Please help.

Dear Expert

Ex gratia payment is tax free or not if employee worked in Private limited, company management has plan to give 2lac in the way of ex gratia (other than PF & Gratuity) for employee death. whether we can deduct TDS on Ex gratia payemnt?

The COmpany X is a Indian Private Company. ABC is a foreign director and he is paid salary and not Directors remuneration. Then is there some procedure.. The Board will only take on record that ABC is being paid salary. are there any limits for private company. Directors remuneration is not paid only salary is paid. kindly guide.. send mail to agarwal.sarika@in.kline.com

We want to go for cost cuttings & savings in our company please suggest some good ideas even gives small saving

Kindly send me the format resolution required under Section 187 of the companies Act, 1956. i.e the company X is a shareholder in Y company and X company authorising one of his employee to attend the Extra Ordinary General Meeting of Y company and vote on their behalf.

may send at at email id- agarwal.sarika@in.kline.com

HI ALL

Please tell me how a share price goes up & downs .

For Example :-

Share of RELIANCE GROUP .
Share price depends upon its profit & lose or total assets value .

Please clear me

Hi,

Require clarification on payment of Service Tax and TDS on Freight.

We supply goods to our customers at their godown. Invoice contains the Freight element seperately which is reimbursed by the customer. While paying the frieght back to transporter do we need to deduct Tax and pay service tax on the same.

Thanks
Venkat Reddy

Is a chartered accountant's signature compulsory while filing an individuals return even if his net taxable income is zero??