Letter of Credit(LC)is opened by the buyer in favour of the supplier for supply of goods, which ensures the payment to the supplier at the end of the period of LC.Since the money is not immediately received, the supplier discounts LC with bank and realise the money. The supplier pays LC discounting charges.

As per the terms agreed, the buyer reimburses the LC discounting charges to the supplier.

Queries:
1. The LC discounting charges reimbursed by the buyer is in the nature of interest. Is it correct?
Please clear the facts in terms of Circular: No. 65 [F. No. 275/97-ITJ], dated 2-9-1971
2. If it is correct, is it subject to TDS?
3. The buyer in his books of account does not show the Suppliers account in creditors but shows the LC account under acceptance creditors since the LC is opened in favour of the supplier? Is it correct?

I have a query regarding ACD. After issuance of customs notification no. 102/2007 dated 14/09/07, Can additional custom duty on imported goods be passed on the consumers through cenvatable invoices.? Here in the market, there is rumour that w.e.f 14/09/07, Importer can not pass on ACD through Cenvatable invoices. Is it correct?? Please reply my query...

I have a query regarding ACD. After issuance of customs notification no. 102/2007 dated 14/09/07, Can additional custom duty on imported goods be passed on the consumers through cenvatable invoices.? Here in the market, there is rumour that w.e.f 14/09/07, Importer can not pass on ACD through Cenvatable invoices. Is it correct?? Please reply my query...

Dear sir/madam,
My query is as follows:-
1.X Ltd.got the approval of a BOT Project from State govt. agency in sept.2005.

2.X Ltd.formed a SPV Y Ltd. in Nov. 2005 having 70% share and rest 30% held by other entity. Agreement executed between SPV and govt. agency for contract cost maximum of Rs. 150 crore in Nov. 2005.

3.X ltd. made an agreement with SPV Y Ltd. for taking the same contract on 202.00 Crores in Sept.2006.
In between the period of sept.2005 to sept.2006 X ltd. was doing all formalities for the project.

4. For Dec. 2006 quarter X Ltd. shows contract completed 35% and books profit of Rs.60.00 crores in compliance with AS-7.

Here my question is that can X lTD.show such profit in short term where the BOT Project taken by SPV is for 20 years and SPV can earn revenue after completion of project by charging toll charges etc?

Here 70% funds of SPV financed by X ltd itself,so in reality X Ltd is showing inflow of revenue from SPV which is nothing but its own fund invested in SPV.
Is it possible ?

R/s. Sir / Madam,
I want the TDS Circular which is given the rate of payment to Contractor.
This circulor is important for me.
Please give circulor number / link.
Sachin

Advance bank gautantee taken and given to a client is it contingent laibility to a company?
is it should form notes on accounts under AS 29

hii frnzz
pl explain me what is UNEARNED PREMIUM and Reserve for unexpired risk......
if possible with an example..

Can a nominee director be appointed as a managing director of the Company? If yes, than he must be in the employement with the company, after that what happens to his status with the company vis a vis with the instiution which has nominated him on the Board of Company?

With regard to claiming Deduction in respect of medical insurance premia under Section 80-D of the I.T Act, the Section provides, inter alia, that premium should be paid by any mode other than cash. Such condition of making payments by any mode other than cash is not prescribed for other purposes such as Deduction under Sec 80-C for LIC Premia etc. I would like to know what could be the intention in prescribing other than cash mode of payment. Is it to curb black money, if so, why similar condition is not prescribed in all Sections allowing Deductions.

Hi All,

One of my friend is doing his Articleship but after Approximately 3 months there is a misunderstanding between his Seniors & him and know he is going to resign.

He wants to join some one else for Training. What will be the process of the same. Which forms will be used.

And importantly impression of the same in his career.