Corporate law and Income Tax law SOB's?
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Corporate law and Income Tax law SOB's?
How can we Define Corporate law sob and Income Tax law Sob?
-
- Posts: 4
- Joined: Wed Apr 11, 2007 3:04 pm
- Location: India
- Contact:
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
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
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
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
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