Corporate law and Income Tax law SOB's?

[laxmaredy.mn]

How can we Define Corporate law sob and Income Tax law Sob?

[anu_uma]

Hi,
can you pls be more specific of what you want ???

why you want to create two SOB - Corporate law sob and Income Tax law Sob???

Are u working on Fixed assets Module, if so you have to create the Corporate Register and Tax Register

These register are meant in FA module.

TIA

[laxmaredy.mn]

Thanks Uma

One of my friend faced this question in IBM interview panel. I am not clear about this.

[k.khan]

hi friends
He has raised a very good question,it was in the core of my mind,
let suppose a entity like IBM want to make two SOB on the basis of tax for example income tax support to very limited extend to the depriciation charged by the organisation because in there point of view it understates the profit resulted in less income tax and there are several such disputes like sinking fund so some time management want to have different picture for different user here creates the problem

in my point of view such organisation need to make a seperate reporting SOB in foriegn curruncy and latter change it in to domestic one
or translate
this is the reason why it was in the interview. NOW SUGGEST

[anu_uma]

Hi,
That is the reason we maintain the corp register and tax register in Fixed Assets....

Corp register is for general purpose and Tax register is for IT authorities

TIA

[admin]

Defining Depreciation Books (Fixed Assets)

You can define corporate, tax, and budget depreciation books. You must set up your depreciation books before you can add assets to them. You can set up multiple corporate books that create journal entries for different general ledger sets of books, or to the same set of books. In either case, you must both run depreciation and create journal entries for each depreciation book. For each corporate book, you can set up multiple tax and budget books that are associated with it.

Normally tax book is created because your depreciation method/calculation are not matching as per tax requirements so for tax authorities you create another book according to tax law.

Thanks

[k.khan]

this is not only bounded only to the fixed assets,if you have to use it for different purposes like board of directors want to know actual income and expenses other then gain and loss over the sale of security or other income etc then what will be workaround of it