Re: [aurangabad_ca] Interesting Practical Query
Dear Freinds,
Refer Siddheshwar Sahkari Sakhar Karkhana Ltd. VS CIT (2004) 139 Taxman 434 (SC). This is about refundable deposit's taxability. May be of your help.
Regds,
Shamaa
On Fri, Feb 19, 2010 at 4:38 PM, WRO0208854 Dipesh Gundesha <cadipeshgundesha@icai.org > wrote:
Respected professional colleagues,One of my client XYZ is engaged in providing IT related solutions to its clients. In one of its business segment they carry out following transaction-Transaction: XYZ purchases CCTV cameras from manufacturers and installs it at various huge projects of renowned builders. Although XYZ directly purchases cameras, it does'nt sell it to builders. It only recovers 30% of value of camera as non-refundable deposit from builder. After such installation XYZ charges a composite amount of say Rs.500/- per month per camera as rent and maintenance charges. This contract is on life long basis and there is no provision in contract regarding refund of deposit or returning back of cameras. XYZ has to look after repairs and maintnace of cameras.Query: 1) What shall be the accounting treatment for such trancaction?2) When shall be revenue recognised from Income tax angle? Shall 30% amount recieved shall go to reduce value of cameras in books of accounts of XYZ ?3) What will be implication under MVAT Act. Shall such transaction be constured as sale?Detailed insight is seeked from learned members.Thanking you in anticipation.CA Dipesh GundeshaKolhapur9823770030
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Considering all above facts m the transaction based on above mail may not complete without confirming proper statue/authority/person. Therefore any action/transaction taken on basis of this mail do not imply the accuracy or value . Further this Group's Owner/Moderator/Member are not liable for any damages or costs suffered due to action/transaction based on information on this Yahoo Group.
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AURANGABAD_CA is a Yahoo Group for the benefit of CA and other professional. It is especially meant for written discussion within group members and circulate the information among its members. The mail may contain such research/advice/opinion/information/fact provided by any member or moderator and every contain of the mail or information of yahoo is always subject to the Accuracy and of the description of facts.
The Aurangabad_CA , its moderator/owner do not claim that contains in mail/information obtained after reading as a complete and accurate disclosure of relevant fact(s).
Considering all above facts m the transaction based on above mail may not complete without confirming proper statue/authority/person. Therefore any action/transaction taken on basis of this mail do not imply the accuracy or value . Further this Group's Owner/Moderator/Member are not liable for any damages or costs suffered due to action/transaction based on information on this Yahoo Group.
For Seeking any Clarification you may mail only to Group Moderator on
girishkulk@gmail.com
.
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