Recently, I have attended one interview in a Leading Software Company. A qualified (CA) finance controller interviewed me. He asked the following question:

"We are a software company bought one computer server for forthcoming new project and bought special costly software for the same. Till the end of accounting year the project is not yet started and both the server and software are keeping idle. During the year end is it applicable for Depreciation?".

I replied that the asset has been purchased with the intention that expected to be used for the purpose of business hence liable to depreciation either used or not in the business.

He has taken Accounting Standard -6 "Depreciation" definition and it shows:
"Depreciation is a measure of the wearing out, consumption or other loss of value of a depreciable asset ARISING FROM USE, effluxion of time or obsolescence through technology and market changes."

plz note that it shows "arising from use", hence we had argument in this topic and I’m waiting for interview result.

Experts’ help required.
(plz mention the website where you have observed the point)

stores & spares, which have become unusable, and written off from the books of the company. Whether such writ off is an allowable expenditure in income tax or not. Is there any case law in support of such write off.

We have voluntarily filed e ITR form ITR2 for one of our clients claiming refund of tax; without digital signature.
However, during the filing process there was power failure and acknowledgement could not be generated and printed.
However, now if we want to file the return it is not accepted by the website and it says revised return is to be filed since already the return has been accepted.
How can we get the acknowledgement to submit it to the Income Tax Department.

As per recent directive of RBI CA certificate regarding tax deduction under Section 195 has to be submitted to bank for making any remittance abroad. Section 195 covers payment to foreign company and says TDS FOR DEDUCTION ON ANY OTHER SUM CHARGEABLE UNDER THE ACT . In case of payment of import purchase will this be applicable? Please also refer to Section 195(2).

We(say company A) are dealer of goods.Goods are purchased from manufacturer(say company B) and are sold to final consumer by us.



Company B sends us goods through road transport (say comapnay C i.e a independent party) and charges us for the same through the invoice by showing road transportaion charges seprately after cost of goods in invoice issued by them.



It must be noted that although company C (i.e road transport agency) is paid by company B at first but later on that cost is borne by our company (i.e company A).



My query is wether we (i.e company A) can claim Cenvat credit of service tax included in those charges (i.e charged by company C to company B) which are ultimately borne by us?

I want to know that the interest on educational loan is a claimable in the hands of father if paid during the loan period on behalf of his son educational loan ie during the course of study of his son

A firend of mine works in company. He had a company owned car for which a certain amount was being deducted from his salary every month. When he decided to leave the company he was asked to purchase the car from the company at the wdv with 12.5% vat being charged on the same ( i.e wdv + vat).
My query is wether such a transcation involves vat . If so which section can I refer to.

A.Y. 2007-08, Assessee: Individual.
There is short term capital gain taxable @ 10% of Rs 20000. Income from other sources Rs 100000 and deduction u/s 80c Rs. 80000. Will there be a tax liability on account of S.T. Capital gain taxed @ 10%?
In other way, is there compulsory taxation of short term capital gains charged @ 10% even if the total income does not exceed the taxable limit?

what is e-1 forms and why we require e-1 forms and whats the benifit of e-1 forms

Regards

balwant singh

what is e-1 forms and why we require e-1 forms and whats the benifit of e-1 forms

Regards

balwant singh