Accounting treatment of the subsidy on fertilisers from the Government under the Retention Price Scheme and Valuation of stocks of finished goods lying in transit from the plant and those at warehouses.

1. A multi-unit cooperative society is registered under the Bombay Cooperative Societies Act (Act VII of 1925) as extended to the Union Territory of Delhi. The society is governed by the provisions of Multi-State Cooperative Societies Act, 1984, and the rules framed thereunder. The society is engaged in the business of manufacturing and distribution of chemical fertilisers, viz., nitrogenous fertiliser, and complex phosphatic and potassium fertilisers (NPK/DAP).

Advisory circular to CA for Audit under DVAT

Commissioner of Delhi VAT office has issued a advisory circular for auditors conducting VAT audit under DVAT. complete circular can be read as appended below:-

Due date of filing Annul Return for FY 2012-13 in UP VAT extended up to 30-11-2013

Due date of Filing of UP VAT Audit Report has been extended up to 30th Nov 2013 from 31st Oct 2013,details notification can be read as appended below:-

Furnish PAN of Landlord to your employer if paying rent more than Rs.1.00 lakh per annum

If annual rent paid by the employee to his/her land lord exceeds Rs 1,00,000 per annum, it is mandatory for the employee to report PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee.

New procedure for import in the State of UP

Commissioner, Commercial Tax, UP assuming powers u/s 50(1) of the UP Vat has vide his Order no. 1584 dt. 4.1013 (Circular No. 1314057 dt. 7.10.13) provided new procedure for import of specified 25 class of Goods into the State of UP wef 28.10.2013 as under :

TAXATION OF NON-RESIDENTS

Who is a ‘resident’ for tax purposes? (Section 6)

1. INDIVIDUAL

1. An individual is considered as a ‘resident’ if he is

1. in India for 182 days or more in a previous year

OR

2. in India for 365 days or more in 4 years immediately preceding a previous year and 60 days or more in a previous year

Pay Self Assessment Tax to avoid getting Notice from Income Tax department

Assessees whose tax liability as per ITR is more than Rs.100/- are supposed to pay their tax liability on or before due date of filing their ITR. however it has been noticed by the Income Tax Department that some of assessee filed their ITR within due date but forget to pay tax. Now department has issued circular advising all such assessees to pay tax before getting notice to avoid penal consequences. detailed circular is appended below for reference of guest/member of the blog:-

CBDT Extends Due Date For Filing Tax Audit Report For AY 2013-14

The CBDT has issued an order dated 24.10.2013 under section 119 of the Act in continuation of the order dated 26.09.2013 directing that in cases where the ‘due date’ of furnishing reports of audit and corresponding income-tax returns was 30th September 2013 and where the same are furnished electronically on or before 31st October 2013, such reports of audit and returns of income shall be deemed to have been furnished within the ‘due date’ prescribed under section 139(1) of the Income-tax Act, 1961

source:- http://www.itatonline.org/info/index.php/cbdt-extends-due-date-for-filing-tax-audit-report-for-ay-2013-14/

Food/Beverages services provided by Canteen exempt from Service Tax

Amendment to Mega Exemption Notification - Food or Beverages Services provided by a Canteen exempt from Service TaxCBEC vide Notification No. 14/2013 - ST., Dated: October 22, 2013 has exempt the food or beverages services provided by a canteen by inserting entry no. 19A in the Mega Exemption List. The entry provides as under :"19A. Services provided in relation to serving of food or beverages by a canteen maintained in a factory covered under the Factories Act, 1948 (63 of 1948), having the facility of air-conditioning or central air-heating at any time during the year."[Notification No. 14/2013 ST dated 22.10.2013]Source: www.cbec.gov.in 

Labour Cost Control

Labour is another important element of cost and for overall cost control and cost reduction, of labour cost is of paramount importance. However, for control and reduction of labour cost, it is essential to compute the labour cost in a scientific manner and hence there should be proper systems of systems and processes and documentation, which will help computation of labour cost in a scientific manner.

Attention should also be paid to the productivity aspect. Low productivity results in higher labour cost per unit while higher productivity will reduce the labour cost per unit.

Various aspects of labour cost control

The following steps will be useful in controlling and reducing the labour cost.

Guidelines for the guidance of the assesses and their representatives in Appeal under Income Tax

The Appellate Tribunal has, vide F. No. 114-Ad(AT)/69, dated 13-4-1970, laid down the following guidelines for the guidance of the assesses and their representatives:

1. In all communications addressed to the Tribunal by the parties with regard to appeals or applications or crossobjections the number thereof, or, if the number is not known, the date of filing thereof, should invariably be given. Failure to furnish the information will cause avoidable correspondence and needless delay in answering correspondence.

Service Tax -Reverse Charge Mechanism

What is charging section?

Services are chargeable for service tax as per provision under section 66B but who will pay service tax has been given in section 68 of the Finance Act,1994, sub-section (2) of Section 68 speaks out as to liability to pay by service recipient. 

Sec 68 (2) is worded as follows:-

- “In respect of such taxable services as may be notified by the Central Government in the Official Gazette, the service tax thereon shall be paid by such person and in such manner as may be prescribed at the rate specified in section 66B and all the provisions of this chapter shall apply to such person as if he is the person liable for paying the service tax in relation to such service.

Provided that the Central Government may notify the service and the extent of service tax which shall be payable by such person and the provisions of this chapter shall apply to such person to the extent so specified and the remaining part of the service tax shall be paid by the service provider.”

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Labour Turnover

            Labour Turnover

            It is the rate of change in the labour force during a specified period measured against a suitable index.  The standard or usual labour turnover in the industry or locally or the labour turnover rate for a past period may be taken as the index or normal against which actual turnover rate is compared.  The methods of calculating labour turnover are given below :