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Kamis, 10 Januari 2008

RE: {Brainstormers -CA} Re: Query relate to Commercial Production

Dear Mr. Shashank;
 
I am afraid what you are planning to do is not correct on the accounting principles. You must have purchased some raw material - that is not a part of the cost of the plant. You must have incurred some more costs to get the trial production - even these costs cannot be called plant. Then how come you can call the sale proceeds as a reduction in the cost of the plant ? Had it been a case of a turnkey project where the plant supplier was taking the trial production to satisfy the buyer, probably what you want could have been done. But it looks like that is not the case here.
 
CA. Pramod Goenka


To: ICAI_CIRC_MEERUT_CA@yahoogroups.com
From: ca_shashank2004@yahoo.co.in
Date: Wed, 9 Jan 2008 17:21:12 +0530
Subject: Re: {Brainstormers -CA} Re: Query relate to Commercial Production

Dear Mr Pramod

 
Actually my problem is we don't want to show this sale in our P&L A/c right now , we want to reduce this Sale Amount from
Cost of Plant Machinery at the time of Capitalisation of Total P&M. So kindly advice is this a right Accounting treatment ?

 
Regards
Shashank

----- Original Message ----
From: PRAMOD GOENKA <pkgoenka@hotmail.com>
To: icai_circ_meerut_ca@yahoogroups.com
Sent: Wednesday, 9 January, 2008 2:19:12 PM
Subject: RE: {Brainstormers -CA} Re: Query relate to Commercial Production

What is the purpose of your query ? A lot may depend on the specific problem that you have. Are you worried about Income Tax ? If yes, which section/provision ?
 
CA. Pramod Goenka

To: ICAI_CIRC_MEERUT_ CA@yahoogroups. com
From: ca_shashank2004@ yahoo.co. in
Date: Wed, 9 Jan 2008 09:12:36 +0000
Subject: {Brainstormers -CA} Re: Query relate to Commercial Production


> Dear All
> Please clarify the Following Query
> One Company is establishing their New Plant in Maharashtra. The
> present Status is Factory Building is under construction (80%
> complete )and full Machineries are not Installed only Few out of
the
> total machinery is Installed (aproox 15% ),on which Trial
Production
> is going on .
> My Query is Can we Sell this Trial Production to our Regular
customer
> as a Normal Sale and if Yes then whether this transaction will
fall
> under the definition of Commercial Production come or not
>
> Please clear the Definition of "Commercial Production "& "Trial
> Run "
>
> With Regards
> Shashank
>



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