Dear all
I have a doubt regarding, while preparing p&l account sales & purchases Consider / Includes gst or not?
As per my knowledge sales (Turnover) & purchases includes taxes.

In my organisation p&l accounts, they are showing purchases & sales before taxes,why?
Kindly help me.

Thanks

My query in on Exchange Difference :

Let's assume same scenarios with 2 different companies: say Company A & Company B

Scenario :

1) Exports goods worth USD 1,000 @ 70 rate.

2) Receive USD 1000 @ 75 rate from foreign customer

Company A has an INR current account. But Company B has USD EEFC account to receive foreign receipts.

Entry for no. 1) will be same for both companies:

Dr. Foreign Debtor 70,000
Cr. Export Sales 70,000

But there will be difference in Entry for no. 2)

when Company A receives USD 1,000 in INR current account, it receives Rs. 75,000. So, entry will be:

Dr. HDFC Bank current account 75,000
Cr. Foreign Debtor 70,000
Cr. Exchange Gain 5,000

However, Company B receives USD 1,000 in EEFC account. Though the USD to INR exchange rates are different during the time of export sale and receipt, but Company B billed USD 1,000 and it received USD 1,000 and in EEFC account. So, no exchange gain to account at that point of time.

Entry for receipt will be

Dr. HDFC Bank USD EEFC account 70,000
Cr. Foreign Debtor 70,000

Now an additional transaction is when the funds are transferred from EEFC USD account to INR current account. Let's say USD 1,000 transferred to INR current account when Exchange Rate is 77. So, entry will

Dr. HDFC INR current account 77,000
Cr. HDFC EEFC USD account 70,000
Cr. Exchange Gain 7,000

Is this correct?

I discussed this with our Auditor. He said that Exchange difference to be accounted while receipt of funds in EEFC account. Though Company B have received same USD quantity, but INR value is different.

So, he says that Exchange fluctuation will happen only at the time of receipt of USD and no exchange fluctuation impact when transfer funds from USD EEFC account to INR current account.

Dealer selling of battery inverter goods regular scheme registered in gst act.
Dealer selling of old scrap battery inverter to another gst dealer
Question:
gst applicable on selling of old scrap battery inverter and treatment of service or selling under gst act.

dear Expert
a charitable trust was formed in Jan. 2019 and we applied for the registration u/s 12AA in Feb 2019 and after some amendment in trust deed, it was registered in somewhere Oct.2019.
Now, My question is , is it necessary to file Income tax Return for the AY 2019-20. There is no activity in that period except donation received towards corpus fund.

Whether Column 4 of Inward Supplies and column no. 7 of Inward and outward supply according to tax rates are Mandatory Fields ?

Sir
If a partnership firm is going through loss, then is it mandatory to show interest on capital and remuneration to partners?

Dear expert

Brief: For Ay 2018-19- Person have taken Property On housing Loan, Earlier he was taking Benefit of interest paid on Housing Loan u/s 24 and Principle payment under 80C .

Query- In Ay 2019-20, he has rented this property, still paying his housing Loan with interest and principle. Can he get the benefit of such interest and principle payment for ay 2019-20

Where this rented income can shown to income from other sources, or any other treatment.

Thanking you for your valuable time

IN MARCH MONTH I WAS ENTERED ONE SALE INVOICE IN TWO TIME KNOW I WANTS TO DELETE ONE SALE INVOICE WHAT I DO FOR THIS

I am taken OD of 50 Lakhs INR and given loan to my relative of 50 lakhs INR. Another loan given to same relative of 40 Lakhs. i have maintain two separate ledger in my books and till march i have charged same interest rate in both account. During last year i have repay OD amount of 50 Lakhs and took new OD of 25 Lakhs but my relative not paid principle amount. he only pays interest amount. Now i want to change interest rate i.e for Loan given against of 50 Lakhs reduced to 25 Lakhs and and Balance 25 Lakhs transferred to Another Loan Account i.e 40 Lakhs + 25 Lakhs = 65 Lakhs And different interest rate for 25 Lakhs and 65 Lakhs from same person.
Is it possible to do ?

HI,

IN MY COMPANY TDS CHALLAN 281 PAID FOR THE F.Y. 2017-18 , AND SAME UTILISED PARTIALY AND BALANCE AMOUNT USED IN NEXT FINANCIAL YEAR 2018-19, BUT TAX DEPARTMENT DOES NOT ALLOWED THAT SO, CAN YOU PLZ ADVICE ME , HOW TO REFUND THAT PARTIAL AMOUNT OF TDS IF THERE IS NO ADJUSTMENT AVAILABLE IN THAT PARTICULAR YEAR.