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Items under rates & taxes?

Tom S Peter (Article) (148 Points)

22 July 2011

What all expenses can be accounted under Rates & Taxes?

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CMA Shilpa Shinde (COST ACCOUNTANT) (217 Points)
Replied 22 July 2011

Dear Tom,

Rates and Taxes are the charges or fees which are generally payable to Government (local, state, central),

Thus, these expenses includes following,

- Municipal Taxes (Property / housing tax)

- Fees payable for filing e-tds return

etc.

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Tom S Peter (Article) (148 Points)
Replied 22 July 2011

I'm thankful for your reply,but just i'm asking...

If we are paying fee for inspection on our machinery done by a party (non-Govt) ,can we account it as rates & taxes?

CMA Shilpa Shinde (COST ACCOUNTANT) (217 Points)
Replied 22 July 2011

dear Tom, Is the inspection on machinery is carried out based on any of rules of Government for which authorised agent of government carries out such inspection and charges fees as per government rule then it can be debited to Rates and Taxes. kindly inform the reason of inspection.