Tds deduction

Instrumentation means instrumentation work,  also got electrical work n all.  So there will be cost for miscellaneous exp such as rent, travelling exp all relates to project work.  So under which ledger name???? 

Originally posted by : Rno
	Instrumentation means instrumentation work,  also got electrical work n all.  So there will be cost for miscellaneous exp such as rent, travelling exp all relates to project work.  So under which ledger name????

if the instrumentation is done for own firm, then it may be or may not be capitalized, under fixed asset, and all the expenses would go under appropriate head, except purchase of goods 

if the instrumentation is done for your clients, then you have to reimburse the expenses, but the accounting policy would not get changed. viz travellling would be be debited in travelling , carrige inward would be debited in carrige inward (in case of work done for client, you can issue invoice consolidated with expenses, or issue debit notes for expenses for reimbursement)

it is done for our client.. some project works relates to electrical and instrumentation . so the expense relates to a work must post to direct expense.. bt the doubt is that on which ledger name ?? it have the expen such as rent for workers, travelling expen and other exp. it must be in direct exp, so i need to get the correct ledger name to post all these..

Originally posted by : Rno
	it is done for our client.. some project works relates to electrical and instrumentation . so the expense relates to a work must post to direct expense.. bt the doubt is that on which ledger name ?? it have the expen such as rent for workers, travelling expen and other exp. it must be in direct exp, so i need to get the correct ledger name to post all these..

workmen expenses would go under the respective head as normal, under travelling and conveyence

( rent for workers?? it might be wages or Housing Rent allowance)

balance is dependent on your invoicing system, if you make invoice consolidated, then it would go under expenses, if  reimbursed then the remaining portion will be available as expenses 

all the expense are meet by ourself only,, its not re-imbursed. its not operating expense.  did you mean that travelling exp legder must be under direct exp?? 

Nope, travelling and conveyence is ïndirect expenses"but allowed under the incometax. there are no provision to adjust such expenses under direct expenses. 

our exp cant be treated as indirect exp. coz the exp made for our sales only. so how it possible to post in indirect exp???

all indirect expenses are also related to the main business, 

you can better understand with this method 

you sold instuments worth 2 Lacs ( direct sale, direct purchase shown in direct expenses)

you provided installtion service worth 50 thousand (indirect job related to sales, indirect expenses) 

Ttoal bill 2.5 lacs, combination of direct and indirect expenses