06 December 2007
Hello to everyone out here. My brother has just started an interior designers firm. and i want to have certain system set up for accounting of the same.One of my problem is the business is divided into two parts. First the trunkey based projects in which we purchase all material, hire labour agencies and pay them, and supervise all the work and then charge our design fees. second is the service projects in which we just have to assist the client for purchasing the material and hiring of labour etc. we charge only for our design fees.
so can you please suggest how should i maintain accounts in tally giving certain guidlines including groupwise details. and also how should i prepare the invoice whether i should include material in and labour in the invoice or just design fees.
19 March 2008
It depends on how you are billing your clients. If you are able to distinguish material price from other price then service tax would be on service charges only and not one the entire value. But maintaining seperately helps you to determine the amount to be charged and the profits made on individual transactions
CAclubindia
