Introduction of XBRL Taxonomy Creation

The purpose of this class is to help people understand and create XBRL taxonomies. An XBRL taxonomy is somewhat of a “vocabulary” or "dictionary" which describes data contained in an XBRL instance document. An XBRL Instance document is somewhat of a “database” of financial statement information issued by an entity.

This material is intended for “semi-technical” audiences with some technical participants and some non-technical participants. The technical audiences should be using the XBRL technical specification for definitive answers to any issues. If there is any conflict between the technical specification and this information, clearly the technical specification is definitive source of information.

This information is intended for:

a)      Technical developers who desire to get the “big picture” of XBRL.

b)      Anyone else who desires to obtain a “big picture” understanding of XBRL.

c)      Non-technical domain experts who need to talk to technical developers about XBRL.

d)     Semi-technical accountants who wish to act as consultants, working with technical developers to build XBRL based solutions.

e)      Semi-technical and non-technical domain experts who wish to build taxonomies.

Objectives

The objectives this material is to provide the user with the following:

a)      An understanding of the information contained in the XBRL specification for creating taxonomies.

b)      A general understanding of XML Schema.

c)      A general understanding of XBRL instance documents.

d)     The ability to thoroughly understand the CI taxonomy, which will provide insight as to how to create other XBRL taxonomies.

e)      The ability to create common taxonomy components or “patterns”.

f)       The ability to reverse engineer the CI taxonomy components in order to figure out how to create the more complicated taxonomy components for taxonomy you is creating.

g)      Provide you with an understanding of the best practices you should consider using when building taxonomy.

h)      Teach you how to use the XBRL Taxonomy Builder to assist you in creating taxonomies.

 XML 101

Overview

XML is a general specification for creating computer markup languages. XML has its roots in SGML which was developed in 1986.

XML is:

a)      A self-describing, extensible (extendable), messaging format which can be used for many different things.

b)      A universally agreed upon way of doing things one-way, which are currently being done in 100s of different ways.

c)      Turns information from a “blob” of meaningless text into a “database” of identifiable and accessible information.

d)     A technology that is fundamentally changing the Internet and computer software.

Sample

The following is a sample of XML:

<?xml version="1.0"?>

<PurchaseOrder>

<Header>

<Customer>

<Name> John Doe</Name>

<Address>PO Box 99</Address>

<City>New York</City>

<State>NY</State>

<ZipCode>12345</ZipCode>

</Customer>

</Header>

<Line>

<Quantity>1</Quantity>

<Item>Blue Sled</Item>

<Price>22.00</Price>

</Line>

<Line>

<Quantity>1</Quantity>

<Item>Red Wagon</Item>

<Price>43.00</Price>

</Line>

</PurchaseOrder>

The following is another sample of XML, which is constructed using XBRL:

<?xml version="1.0"?>

<!-- Created by XBRL Export Utility -->

<group id="A1" entity="Great Plains Software, Inc." type="statement">

<group type="statements.accountantsReport">

<item type="reportDate.date">June 19,1998</item>

</group>

</group>

Namespaces and Qnames (Qualified Names)

Namespaces are important concepts to understand in XML and XBRL. This is a very powerful feature which is not well explained and not fully implemented; it seems, by the W3C.

Namespaces

Namespaces basically solve the problem of two groups creating different taxonomies but use the same name within that taxonomy. When a namespace is added to an element, it makes that element unique, even when mixed with another taxonomy which has the same name. For example,

Example Explanation

<p> P is used by HTML and could be used by other taxonomies

<html:p> Namespace identifies that this is an html paragraph.

The following is sample syntax on how to indicate the namespace prefix for a namespace:

<group xmlns:xbrl="http://www.xbrl.org/us/us-gaap-ci-2000-07-31">

Qnames (Qualified Names)

Namespaces are also valid to use within the value of text. When you do so, you create what is called a qualified name. A qualified name or Qname is an element value which has a namespace within it. For example: <group entity="NASDAQ:GPSI"> Within this fragment, “NASDAQ:GPSI” is the value of the entity attribute. The “NASDAQ:” makes this value a Qname. “NASDAQ” is the value of the namespace prefix. The namespace prefix used in Qnames must be defined as a namespace prior to being used in the document, within an element or parent of the element containing the namespace prefix.

Other Important Terms

The following are some basic terms you should understand when working with XML:

a)      Element

b)      Attribute

c)      Parent

d)     Child

e)      Node

f)       Valid

g)      DTD/XML Schema

h)      Well-formed

Understanding Camel Case

Camel case is a widely accepted standard syntax for expressing XML and other things like programming code, database fields, etc. Camel case is widely used in Visual Basic, C++, and Java programming. XBRL specifies that XBRL syntax must be camel Case. XML is case sensitive. Rather than have some people represent information like “THIS_OR_THAT”, and others like “This or that”, and others like “thisorthat”, we will all agree to express it like, “thisOrThat”.

Note that XML is case sensitive. ThisOrThat, thisorthat, and THISORTHAT are different names to an XML parser.

In summary, the rules for Camel Case as used in XBRL are as follows:

a)      All words begin with lower case

b)      The first letter of each new word is capitalized

c)      The “_” (underscore) or the “-“ is not used to separate words, capitalization is.

Examples of Camel Case:

a)      cashAndMarketableSecurities

b)      nowIsTheTimeForAllGoodMenToComeToTheAidOfTheirCountry

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 The author is a tax domain consultant for the couple of years. He is currently writing about different aspects of XBRL Software, Office Management Software and Online TDS Software.

Compulsory Acquisition of a Capital Asset by Government

Where a capital asset is acquired under any law by the government, or where the consideration for the transfer of a capital asset is to be determined or approved by the government or the Reserve Bank of India, the following points may be noted while computing CG:

Chargeability on receipt basis: It is chargeable to tax in the previous year in which such compensation/consideration or part thereof is first received. Thus, CG is not chargeable on accrual basis. It is taxable on receipt basis. Cost of acquisition to be deducted only in first computation: Where such compensation is received in installments, the cost of acquisition or cost of improvement is allowed to be deducted in full in the year of first computation on receipt basis. It is not to be apportioned over different installments.

Realization expenses to be deducted in subsequent computation also: If the assesse incurs realization expenses or legal expenses, etc., in respect of subsequent installments, the deduction is allowed for such expenses in computing CG.

Nature of CG in subsequent computation: The nature of CG is determined with reference to first computation. Thus, if the CG under first computation was long-term, it will remain so in subsequent computation also.

Enhancement of compensation: Where compensation is enhanced or further enhanced by any court, or Tribunal or other authority, CG resulting from enhancement of compensation is also taxable on receipt basis. For computing CG from such enhancement, cost of acquisition/cost of improvement is taken at nil. Thus, only realization expenses may be claimed as deduction under Sec. 48 (i) in computing CG from enhancement of compensation.

Receipt of enhanced compensation by any other person: Where due to the death of the original transferor or for any other reason, any other person receives enhanced compensation; recipient of such compensation is taxable on such CG.

Interest on enhanced compensation: Where the assesse is following mercantile system of accounting, interest on enhanced compensation should be spread over on accrual basis and be taxed accordingly [Raina Bai v. CIT (1990)181 ITR 400(SC)].

Reduction in compensation: Where compensation is reduced subsequently by any Court or Tribunal or other authority, the assessed CG of that year is re-computed with reference to reduced compensation, taking it as the full of consideration.

A mere claim to income without an enforceable i.e.,right thereto cannot therefore, be regarded as an accrued income for the purpose of Income Tax Act.

Here

CG = Capital Gain*

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Kishor Kumar is a tax domain consultant here is for share some articles about XBRL Software and Office Management Software.

File Tax Returns 2011-12: Do Not Miss The Tax Filing Deadline To Avoid Penalty

Every year, March is the month for filing tax returns and March 2012 is going going gone, just 4 day left. So if you didn't prepared your tax yet than file your return of income and prepare important taxation issues before 31th march 2012.

Web is full of various software to help you out for efiling tax returns, and sole reason behind this is to create awareness without any cumbersome hassles. To prevent the last-minute rush of efiling tax, jump on online tax filing solutions.

We have listed down advantages of software for efiling returns in 2011-2012

Main Advantages:

 --> Calculate tax and interset by return preparation software

--> See credit statement form 26AS to check all deductions and paid tax

--> Check online status of return filing Compulsory efiling tax return for below: --> Companies who submit ITR-6

--> Firm/individual/Hindu individual families who come under income tax norms

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We offers hassle free return filing service, XBRL Software, web based Online e-TDS Software, Office management Software and various utilities for CAs and advocates.

Quick Checklist Of General Deductions

Drafting an entire comprehensive checklist for residuary business expenses is not feasible. However, every professional should know about the allow ability/non-allow ability of some important expenses. Here we pulled some of important expenses are brief below here:

1. Advertisement: Expenditure on advertisements in print media/electronic media is allowable as revenue expenditure. However, any expenditure on advertisement in any souvenir, brochure tract, pamphlet or the like published by a political party is not deductible (Sec. 37(2B)].

2. Annual day celebrations: The expenditure incurred in connection with the annual day celebrations is allowable as business expenditure [CIT v. Mehsana Distt. Cooperative Milk Producers Union Ltd. [1994] 207ITR140 (Cuj.)l.

3. Payment for consultancy fees: Consultancy fee paid, for the benefit of increasing the manufacturing efficiency and formulating incentives schemes would be allowable as revenue expenditure [CIT v. Praga Tools Ltd. (1986) 157 ITR 282 f AP)].

4. Fines: Fines and penalties paid for traffic offences by the assesse company's truck drivers being penalty for infringement of law, could not be allowed as deduction [CIT v. Jaipur Golden Transport (1997) 226 ITR 399 (Del.)].

5. Penalties: Penalty paid for infraction of law, not deductible - If an assessed is penalized under one Act, he cannot claim that amount to be set-off against his income under another Act, because that will frustrate the entire object of imposition of penalty. Penalty for non-payment of sales tax is not deductible [Malwa Vanaspati & Chemical Co. V. CIT (1997) 225 ITR 383(SC)].

6. Foreign tour/travel expenses: Foreign travel expenses connected with exploratory missions and finalization of collaboration agreements are revenue expenditure [Antifriction Bearings Corporation Ltd. v. CIT (1978) 114 ITR 335 (Bom.)].

Tour expenses connected with survey of new methods or for purchase of machinery are capital expenditure [Ambica Mills Ltd. v. CIT (1964) 54 ITR 167 (Guj.)].


Tour expenses connected with initiation of new business is not deductible |CIT v. Flour & Food Ltd. (1988) 170 ITR 469 (MP)].


Tour expenses by surgeon for studying latest techniques in surgery are deductible [Dr. P. Vadamalayan v. CIT (1960) 40 ITR 501 (Mad.); CIT v. Dr. M.S. Shroff (1971) 80 ITR 687 (Del.)].


7. Foundation ceremonies: Expenditure on foundation-laying of factory is revenue expenditure [CIT v. Merck Sharp & Dohme of India Ltd. (1983) 140 ITR 332 (Bom.)].

8. Pu)a expenses: Expenditure incurred on customary Ganesh Puja at the lime of opening books of accounts, is primarily in the nature of advertisement for the assessor’s business and hence is a permissible deduction [Brijraman Das & Sons p. CTT (1983) 142 ITR 509 (All.)].

9. Diwali and muhurat expenses: Expenses incurred on the occasion of Diwali and Mahurat are in nature of business expenditure. Such expenses are deductible if the Assessing Officer is satisfied that they are not of a personal, social or religious nature (Circular Letter No.131 A/20/681TCA-J1 dated)/October 1968].

10. Interest payments: Interest for late filing of returns is not deductible [Bharat Commerce & Industries Ltd. v. CIT (1998) 230 ITR 733], Interest paid under Sec. 220(2) for late payment of income tax is not deductible as revenue expenditure [CIT v. Ashoka Mills Ltd. (1996) 218 ITR 526 (Guj.)].

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We are domain consultant in taxation software development company which is provides Online eTDS Software, efiling income tax software, XBRL Software and various utility product for chartered accountant and corporates. Also ask for free demo "Office Management Software".

McAfee Recommend Indian Government to lower the TDS For Software Resellers

McAfee had made contribution its advice to Union Government for the forthcoming budget (scheduled for March 16th) to reduce the TDS for software resellers from 10% to 1-2%.

The following are a few significant illustrates:

1. One of the primary highlights in the previous budget was empowering e-filing, e-payment of taxes, computerization of business taxes and the generation of ‘Sevottam’ which has raised the activity for nation's progression in programmed system for tax administration. This has been essential in enhancing technological innovation adoption within Indians. In this budget, all we are hoping that the government allows more ways in tax, pension and similar activities via an online platform to make it practical for Indian folks.

2. A different vital matter that requires to be resolved by the Finance Minister is definitely demarcating the line in between dealing with software as goods or solutions. Hence appropriate taxes can be charged and organizations can comply with the suitable laws. As the application products industry is largely reliant on the channel ecosystem, the government needs to think about decrease of TDS for software merchants from the existing 10% to 1-2% to arrange with the business tax rate. Further explanation is also required in the definition of ‘Place of Effective Management’ in the recommended Direct Tax Code, presented that we are the Indian additional of multinational company.
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Tired of using old tax software?? Switch to reliable and powerful Online e-TDS Software for hassles free e-filing of TDS return. Now use XBRL Software for Financial Reporting with a smile.

How to Renew PTIN in Each Calendar Year

PTIN - Preparer Tax Identification Numbers (PTINs). Every paid preparers must have a Preparer Tax Identification Number before preparing returns. All enrolled agents are also required to have a PTIN.

For those who are already have PTIN Account, here is few simple steps below for renew PTIN.

 1. Login to your Account

2. Jump on Renew Your PTIN by filling online renewal application, than verify your personal information and should answer a few new questions.

 3.Pay Your Fee through credit card/direct debit.

 4. Follow your system generated steps and fulfill all requirements. Note: Do not forget to renew your PTIN each calendar year.
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 KDK Software offers matchless "online e-tds software" for company and government deductions under section 206 of Income tax law and Business Financial Reporting Tool “XBRL Software” as per MCA mandate.