in cash system whether depreciation should be provided or not. If provided why?

For how long the records should be preserved under the Central Excise Act, Customs Act and Service Tax Act ? (Like there are minimum 8 years as per the Companies Act.)Please also tell me that for how long a CA. should preserve its clients records and working papers ?

My client has a warehouse.He collects warehousing charges and collected service tax on the same.Apart from this he also collects loading and unloading charges.In this regards i would like to know should he collected service tax on loading and unloading as well.

AAS 33: engagements to review Statements
states that
A review provides a moderate level assurance that the information subject to review is free of material misstatement, this is expressed in the form of negative assurance.

My Question is WHAT IS THE NEGATIVE ASSURANCE
over here?If the reviewer is assuring something how can that be a -ve?
i mean is that that he is not assuring something?
Kindly elucidate me the meaning how the review report should contain a "negative assurance"

2)RE: PROFESSIONAL MISCONDUCT:
a)Is the clause of undercutting of fees applicable on an auditor ?

and

b)A listed company has CA. Arun Kumar as its auditor. Now the co. decides to appoint one more auditor CA. K.L.Iyer as the joint auditor. HERE IS THE SECOND AUDITOR K.L. Iyer required to communicate to CA. Arun Kumar ?
if he doesnt will he be charged for prof misconduct?

Due to shifting of its regd. office from city "A" to city "B", a limited company, applied to the Commr. of Income Tax in city "A" for transferring all its files and records to city "B". Both the cities "A" and "B" are situated in different states. The company has no pending cases like special invetigation, seizure, assessments reopened, etc. The company started filing its return in the new place namely city "B" and also completed assessment for some years and obtained refund in one year. One appeal case is also pending before the Dept. in city "B". In this situation, on the return filed in Nov 2006 for the assessment year 2006-07, the assessing officer in original place i.e. city "A", has sent a notice to the co. u/s 143(2) asking the co. representative to attend his office seeking information like documents, accounts, etc., in support of the return filed. Can the co. reply to AO in city "A", stating that since the files are already transferred to city "B", it cannot appear in city "A" as it also involves costs, money and time? Is there is any dept. circular or instruction which can be cited in support of this? If so, how should this be done? I request the experts in the forum to guide. Thanks.

IS SERVICE TAX APPLICABLE ON THE PROFIT MARGIN EARNED BY SELLING THE OCEAN FREIGHT ???

dear sir,

M/s x co pvt.ltd is incorporated in 2003. the company's main nature of business is adverticements,graphics & software development. till now the company has not applied for service tax registration.the company's turnover on Graphics service is F.Y:03-04 Rs.25 laksh,F.Y:04-05 Rs.30Lakhs, F.Y: 05-06 Rs.75Lakhs and F.Y:06-07 is 85 Lakhs.the company raised bills without service tax.

Right now the company has proposed to get registration. so dear sir please tell me the solution to get registration of service tax.

and also tell me how much amount payable to service tax department since last four years...!

please give me the solution...

Hello! Friends,

Recently Excise & Service Tax Auditors
Audited Records & Files of a company, who was a registered as dealer five years ago and their turnover is above 5 crores.
Excise Dept. was intimated writtenly before the Audit in the name of EA-2000. They've inspected on the same days what they written on Audit intimation.

They have inspected each and everthing and finally record some notes relating to Service Tax and Excise part was perfect.
After 10 days, they've called the Accounts in-charge of the company and issue a notice, which contains liability of service tax of Rs. 6.3 lakhs regarding transportation & freight. Here they charged 100% ST on transport & freight and some part was already paid by the customer (end user) of the company.

Then the company said we're ready to pay the liable tax, but the transport & freight is exclusive, which applies GTA abetment of 75% on the total amount, hence 25% was paid. Here the customer of the company, who is a manufactuerer, paid 100% service tax relating to tranport, but we've exclusive transport contract with the customer. Finally, we've paid 25% of the Notice issued by Audit Inspector. And paid challanas are also submitted. This was done 3 months back.
Till now the comapny was not received any Excise Audit Report regarding EA 2000.
And recently, when the company submitting Service Tax Return they've intimated all the particulers & payments in the return.

Now, what will the company do against this?

Mr.A maintains his books on mercantile system of accounting

Mr.B maintains his books on cash system of accounting

Mr.A deducts TDS on amount payable to Mr.B in F.Y.2006-07 and issues TDS certificate to Mr.B in F.Y. 2006-07 for A.Y. 2007-08
Mr.A makes payment to Mr.B in f.y.2007-08
for Mr.B tds is deducted on income which he has not yet booked in his books for f.y.2006-07

in such a case for which F.Y. year TDS credit can be claimed by Mr.B

Mr.A maintains his books on mercantile system of accounting

Mr.B maintains his books on cash system of accounting

Mr.A deducts TDS on amount payable to Mr.B in F.Y.2006-07 and issues TDS certificate to Mr.B in F.Y. 2006-07 for A.Y. 2007-08
Mr.A makes payment to Mr.B in f.y.2007-08
for Mr.B tds is deducted on income which he has not yet booked in his books for f.y.2006-07

in such a case for which F.Y. year TDS credit can be claimed by Mr.B