Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: articles on VAT and GST in India :: TDS :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: ACCOUNTING STANDARD :: VAT Audit :: cpt :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: form 3cd :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4%
 
 
News Headlines »
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act
 Have you got interest on your income tax refund?

Finance Ministry proposes new tax accounting standards for businesses
January, 10th 2015

To ensure consistency as well as clarity on taxation issues, the Finance Ministry has proposed new tax accounting standards related to income computation and disclosures by businesses.

The new draft of 12 Income Computation and Disclosure Standards (ICDS), for which comments have been sought from stakeholders till February 8, is aimed at having consistency in respect of issues that come under this ambit.

This ICDS is applicable for computation of income chargeable under the head 'profits and gains of business or profession' or 'income from other sources' and not for the purpose of maintenance of books of accounts, according to the Ministry.

In the draft paper, the Ministry has suggested tax accounting standards for various matters including those related to lease of equipment, construction-linked projects and inventory valuation.

"The premise of the tax accounting standards is to bring in consistency in the tax positions being adopted by the companies... and ensure adequate disclosure of these tax positions including any exceptions to the same," Vikas Vasal, Partner at KPMG in India, said.

The aim is also to avoid litigation on some of the contentious tax issues, by bringing in clarity and mandatory disclosures, he added.

With regard to tax accounting standards, a committee, set up by the Central Board of Direct Taxes (CBDT), had submitted its first interim report in August 2011. The final report was submitted in August 2012.

The draft standards proposed by the panel was placed in public domain for comments.

"On the basis of the suggestions received from the stakeholders and examination of the same by the CBDT, the draft standards submitted by the committee have been revised," the Ministry said in a release today.

Vasal noted that initially the implementation of these standards would add to the administrative burden of entities.

Under Section 145 (1) of the Income-tax Act, 1961, income chargeable under the head 'profits and gain of business or profession' or 'income from other sources' be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee.

Section 145 (2) provides that the central government may notify ICDS for any class of asssessees or income.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Customer relationship management software CRM software Operational CRM Collaborative CRM

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions