If my company have only 10 lakhs capital, shall we get the
contract amount more than this capital..? or any limit to
get the contract price? and is there any relationship
between capital amount and contract amount?
Answers were Sorted based on User's Feedback
Answer / vijay
it is not an issue there is no limit and there is nothing
relation between capital and contract amount
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / giridhar
Capital is a different topic and it is a balance sheet item;
whereas contract is an operational activity, hence no
relationship exists.
| Is This Answer Correct ? | 2 Yes | 0 No |
Income Tax Department sends cheque for INR 2 Crore as Refund after completion of Assessment for A.Y.2011 - 2012 to a Company. As per IT Return filed for this year I.T. due to Government was INR 60 Lac but was assessed at INR 70 Lac. TDS due to Company was INR 3 Crore which was admitted as INR 2.7 Crore by Government. Government also adjusts Tax dues for A.Y. 2009 - 2010 of INR 40 Lac which was disputed earlier by the Company and Appeal was lying with the CIT. Government pays Interest to the Company amounting to INR 40 Lac. Provision for Income Tax made by the Company in its accounts for F.Y. 2010 - 2011 (A.Y. 2011 - 2012) was INR 50 Lac. What would be the Journal Entry at the time of receipt of Refund of INR 2 Crore from the Government in A.Y. 2014 - 2015 in the books of the Company?
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