TAMIL NADU

Workshop on service tax

Sharing his views: S. Ramachandran, visiting faculty of the Institute of Chartered Accountants of India, Coimbatore, at a workshop in Tirupur on Thursday. —

Sharing his views: S. Ramachandran, visiting faculty of the Institute of Chartered Accountants of India, Coimbatore, at a workshop in Tirupur on Thursday. —   | Photo Credit: Photo: M. Balaji

Staff Reporter

Tirupur: The Institute of Chartered Accountants of India, Tirupur branch, in association with the Customs and Central Excise conducted a one-day workshop on how to read financial and audit statements pertaining to service tax, here on Thursday.

The programme was aimed at helping the customs and central excise officials dealing with the service tax assessments to enhance their knowledge of balance sheets from the revenue point of view.

Members of ICAI explained to the excise and service tax officials the methods to be followed to interpret financial statements through better understanding of double entry book keeping.

The double entry book keeping concept would analyse both the profit and state of affairs of a company on a particular period.

The abstract idea behind the basic methods of accounting namely cash and mercantile systems were elucidated to bring down the errors pertaining to orders passed by officials on tax assessments filed by the companies.

The excise and service tax officials were told to study the financial statements with utmost case since such documents ‘suffer’ from various limitations related to perpetual continuity, historical cost and management policies.

Hence, information disclosed by the financial statements should be judged in the light of economic change and nature of management.

Madhukar N. Hirengange, guest faculty, National Academy of Customs, Excise and Narcotics, Faridabad; S. Ramachandran, visiting faculty, ICAI; Samuel Varghese, Assistant Commissioner of Customs and Central Excise; S. Sarangarajan, chairman, ICAI, Tirupur, spoke.

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