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Answer Posted / s balasubramanian
Under Income tax act, the Employer is responsible to deduct
TDS on salary of the employees etc. otherwise he is
liable. The tax is to be evened out during the year and
you cannot deduct TDS at the end of the year. In the
beginning itself, one has to assess the Income tax of the
employee after getting other details such as savings,
eligible deductions etc., and accordingly you have to
proportion out TDS every month.
It is direct income to Government.
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In Pricing the gallons of petrol sold,service station 'A' follows the first-in-first-out method,while service station'B'follows last-in-first-out method.On 1st January both has the same quantity in stock viz.6,000 gallons at Rs.26 per gallon.During the month,each station recieved additional supplies of 6,000 gallons at Rs.27.50 per gallon.Sales for each of these two stations,during the month,were 8,800 gallons at Rs.29 per gallon. Determine for each service station,profit earned during the month and value of the petrol in stock at close of the month.
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