CAclubindia

S.Srinivasaraghavan's Expert Profile

Queries Replied : 3560

About me

I am a Chartered Accountant, Cost Accountant and a Company Secretary.

I am attached to Amalgamations group of Chennai. I am also on the Board of some of their group companies, besides being a CFO & CS of Simpson and Company Ltd..

Interested in Carnatic Music, Deep reading of Science and Spiritual books and reconciling scientific truths with spiritual experiences, Travel, Games like tennis, cards etc., Watching documentaries on Animal plannet, Discovery, National geographic etc., Internet browsing - websites of Wikipedia, Nature, Astronomy and Professional forums.

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S.Srinivasaraghavan says : Subsidiary selling to parent co.
Ms.Asha, It can not be done like that. The companies are different entities in their own right and the usual sales purchase transactions and the associated compliances will have to occur. Otherwise they will be violating FEMA.

asha fernandes says : sec 10B
sir ,its a subsidiary company who just produces goods for and on behalf of the parentco. so it is just like branch office producing goods and sending it to head office for further sale. the parent company like head office sends money to meet the cost of production.

S.Srinivasaraghavan says : Opting for PF
Dear Mr.Ramakrishnan, The advantage of company's contribution to PF is it is tax free. The advantage of your contribution to PF is it qualifies for deduction u/s 80C. Both ways you stand to benefit. Also it is a forced saving. Further the interest earned by PF accumulations are decent and tax free. If your CTC is constant meaning if you do not opt for PF, the cash payment is going to increase and if you think you are capable of investing in better avenues than PF your self, then you may probably think of the option. But you have to do it month after month your self!

RamaKrishnan says : guide me plz
I have offered CTC Rs.2 Lakhs with a Basic of Rs.8, 000/- Our HR person has informed me that my Basic exceeds Rs.6, 500/- hence, PF deduction is not compulsory. If I haven’t opted PF deduction then I can take home my salary without any deduction. If I have opted PF deduction, then the company’s share also will be deducted from my salary (that is CTC). If I choose PF what benefit can I enjoy? If not what am I loosing? Guide me plz.