vikas gupta (c.a final....) (714 Points)
24 October 20111. what is clubbing of income ( i just want to know meaning,i think incomes are clubbed to evade taxes)?
2.what is debt securitisation?
3.what is venture capital financing?
4. If opening WIP is given in breakups
like Material 70%
labour 50%
which method to apply normal or weighted average?
Please reply asap....thnx
Swapnil Jain
(Finance - FP&A)
(564 Points)
Replied 24 October 2011
1. Clubbing of income means Income of other person included in assessee’s total income.
eg. Income of a minor child is taxable in the hands of his parents.
Clubbing has nothing to do with tax evasion. Clubbing is the provision by which income earned by some other person (like wife-particular cases, children) is added to the income of assesse and he is required to pay taxes on his initial income+clubbed income.
clubbing takes place in following cases like:
1. Transfer of income without transfer of Asset
2.Revocable transfer of Asset etc.
2. A securitized debt is a debt (or a loan) broken down into various bonds and sold. For example, a Rs 1000000 loan could be broken down into 100000 bonds with a face value of Rs10 each. (source: Wiki)
3. Venture capital is relatively a broader term. if in short i tell u, is by following example:
Suppose A and B. A is not having capital but having a successful business plans and ideas. B is having capital and want to earn some return on it. A and B go for venture capital. A invest his idea and B invest his money. Both get return in their agreed proportion.
for the fouth question, I did not get your query or might be my info. on the topic is not updated...
Corrections and suggestions are invited
* Krishna *
(CA Student)
(6149 Points)
Replied 24 October 2011
Answer to 4th Question:
When degree of completion of Opg WIP is given, but no cost break-up of Opg WIP is given-USE FIFO
When degree of completion of Opg WIP is not given, but cost break-up of Opg WIP is given-USE WAC
Swapnil Jain
(Finance - FP&A)
(564 Points)
Replied 24 October 2011
| Originally posted by : Krishna | ||
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Answer to 4th Question: When degree of completion of Opg WIP is given, but no cost break-up of Opg WIP is given-USE FIFO When degree of completion of Opg WIP is not given, but cost break-up of Opg WIP is given-USE WAC |
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brilliant and thanks for sharing...
Hardik Dave
(IPCC and CS Professional(FINAL) Student)
(15533 Points)
Replied 25 October 2011
| Originally posted by : Swapnil Jain | ||
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1. Clubbing of income means Income of other person included in assessee’s total income. eg. Income of a minor child is taxable in the hands of his parents. Clubbing has nothing to do with tax evasion. Clubbing is the provision by which income earned by some other person (like wife-particular cases, children) is added to the income of assesse and he is required to pay taxes on his initial income+clubbed income. clubbing takes place in following cases like: 1. Transfer of income without transfer of Asset 2.Revocable transfer of Asset etc. 2. A securitized debt is a debt (or a loan) broken down into various bonds and sold. For example, a Rs. 1000000 loan could be broken down into 100000 bonds with a face value of Rs10 each. (source: Wiki) 3. Venture capital is relatively a broader term. if in short i tell u, is by following example: Suppose A and B. A is not having capital but having a successful business plans and ideas. B is having capital and want to earn some return on it. A and B go for venture capital. A invest his idea and B invest his money. Both get return in their agreed proportion. for the fouth question, I did not get your query or might be my info. on the topic is not updated... Corrections and suggestions are invited |
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Rahul Gupta
(Chartered Accountant)
(644 Points)
Replied 25 October 2011
| Originally posted by : Swapnil Jain | ||
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1. Clubbing of income means Income of other person included in assessee’s total income. eg. Income of a minor child is taxable in the hands of his parents. Clubbing has nothing to do with tax evasion. Clubbing is the provision by which income earned by some other person (like wife-particular cases, children) is added to the income of assesse and he is required to pay taxes on his initial income+clubbed income. clubbing takes place in following cases like: 1. Transfer of income without transfer of Asset 2.Revocable transfer of Asset etc. 2. A securitized debt is a debt (or a loan) broken down into various bonds and sold. For example, a1000000 loan could be broken down into 100000 bonds with a face value of Rs10 each. (source: Wiki) 3. Venture capital is relatively a broader term. if in short i tell u, is by following example: Suppose A and B. A is not having capital but having a successful business plans and ideas. B is having capital and want to earn some return on it. A and B go for venture capital. A invest his idea and B invest his money. Both get return in their agreed proportion. for the fouth question, I did not get your query or might be my info. on the topic is not updated... Corrections and suggestions are invited |
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