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Income-Tax Notification : In exercise of the powers conferred by sub-section (2) of section 145 of the Income-tax Act, 1961 (43 of 1961)
April, 06th 2015
    [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART-II,
                         SECTION 3, SUB-SECTION (ii)]

                              GOVERNMENT OF INDIA
                               MINISTRY OF FINANCE
                            (DEPARTMENT OF REVENUE)
                        (CENTRAL BOARD OF DIRECT TAXES)

                                      NOTIFICATION

                                                             New Delhi, the 31st March, 2015


                                       INCOME-TAX
S.O. 892 (E) In exercise of the powers conferred by sub-section (2) of section 145 of the
Income-tax Act, 1961 (43 of 1961) and in supersession of the notification of the Government of
India in the Ministry of Finance, Department of Revenue, published in the Gazette of India, Part
II, Section 3, Sub-section (ii), vide number S.O 69(E) dated the 25th January, 1996, except as
respects things done or omitted to be done before such supersession, the Central Government
hereby notifies the income computation and disclosure standards as specified in the Annexure to
be followed by all assessees, following the mercantile system of accounting, for the purposes of
computation of income chargeable to income-tax under the head "Profit and gains of business or
profession" or " Income from other sources". This notification shall come into force with effect
from 1st day of April, 2015, and shall accordingly apply to the assessment year 2016-17 and
subsequent assessment years.

 

                              
                                                Annexure  
          See notification No.32/2015, F. No. 134/48/2010TPL, dated 31st March, 2015  

    A.  Income  Computation  and  Disclosure  Standard  I  relating  to  accounting 
    policies 

                                                       
    Preamble 
 
    This Income Computation and Disclosure Standard 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. 
 
    In the case of conflict between the provisions of the Incometax Act, 1961  `the Act'  and 
    this Income Computation and Disclosure Standard, the provisions of the Act shall prevail to 
    that extent. 
     
    Scope 
     
    1.      This Income Computation and Disclosure Standard deals with significant accounting 
    policies.  
     
    Fundamental Accounting Assumptions 
     
    2.      The following are fundamental accounting assumptions, namely:-- 
     
             a  Going Concern 
     
            "Going concern" refers to the assumption that the person has neither the intention 
            nor the necessity of liquidation or of curtailing materially the scale of the business, 
          profession or vocation and intends to continue his business, profession or vocation 
          for the foreseeable future. 
           
              b  Consistency 
 
          "Consistency" refers to the assumption that accounting policies are consistent from 
          one period to another; 
           
              c  Accrual 
               
          "Accrual"  refers  to  the  assumption  that  revenues  and  costs  are  accrued,  that  is, 
          recognised  as  they  are  earned  or  incurred  and  not  as  money  is  received  or  paid  
          and recorded in the previous year to which they relate. 

 
Accounting Policies 
 
3.        The accounting policies refer to the specific accounting principles and the methods 
of applying those principles adopted by a person.  
 
Considerations in the Selection and Change of Accounting Policies 
 
4.  Accounting policies adopted by a person shall be such so as to represent a true and fair 
view  of  the  state  of  affairs  and  income  of  the  business,  profession  or  vocation.  For  this 
purpose, 

  i   the  treatment and presentation  of  transactions  and events  shall  be  governed  by  their 
substance and not merely by the legal form; and 

    ii   marked  to  market  loss  or  an  expected  loss  shall  not  be  recognised  unless  the 
recognition  of  such  loss  is  in  accordance  with  the  provisions  of  any  other  Income 
Computation and Disclosure Standard. 

 
5.  An accounting policy shall not be changed without reasonable cause. 
 
 
Disclosure of Accounting Policies 
 
6.       All significant accounting policies adopted by a person shall be disclosed. 
 
7.       Any  change  in  an  accounting  policy  which  has  a  material  effect  shall  be  disclosed. 
The  amount  by  which  any  item  is  affected  by  such  change  shall  also  be  disclosed  to  the 
extent  ascertainable.  Where  such  amount  is  not  ascertainable,  wholly  or  in  part,  the  fact 
shall  be  indicated.  If  a  change  is  made  in  the  accounting  policies  which  has  no  material 
effect  for  the  current  previous  year  but  which  is  reasonably  expected  to  have  a  material 
effect in later previous years, the fact of such change shall be appropriately disclosed in the 
previous year in which the change is adopted and also in the previous year in which such 
change has material effect for the first time. 
 
8.       Disclosure  of  accounting  policies  or  of  changes  therein  cannot  remedy  a  wrong  or 
inappropriate treatment of the item.  
 
9.       If  the  fundamental  accounting  assumptions  of  Going  Concern,  Consistency  and 
Accrual  are  followed,  specific  disclosure  is  not  required.  If  a  fundamental  accounting 
assumption is not followed, the fact shall be disclosed. 
                                                     
Transitional Provisions 
 
10. All contract or transaction existing on the 1st day of April, 2015 or entered into on or 
after the 1st day of April, 2015 shall be dealt with in accordance with the provisions of this 
standard after taking into account the income, expense or loss, if any, recognised in respect 
of the said contract or transaction for the previous year ending on or before the 31st March, 
2015. 
B. Income Computation and Disclosure Standard II relating to valuation of 
inventories 
 
Preamble 
 
This Income Computation and Disclosure Standard 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.  
 
In the case of conflict between the provisions of Income Tax Act, 1961  `the Act'  and this 
Income Computation and Disclosure Standard, the provisions of the Act shall prevail to that 
extent.  
 
 Scope 
 
1.    This  Income  Computation  and  Disclosure  Standard  shall  be  applied  for  valuation  of 
inventories, except :  
 
            a     Workinprogress  arising  under  `construction  contract'  including  directly 
                  related service contract which is dealt with by the Income Computation and 
                  Disclosure Standard on construction contracts; 
 
            b     Workinprogress  which  is  dealt  with  by  other  Income  Computation  and 
                  Disclosure Standard;  
 
            c     Shares,  debentures  and  other  financial  instruments  held  as  stockintrade 
                  which are dealt with by the Income Computation and Disclosure Standard on 
                  securities; 
 
            d     Producers' inventories of livestock, agriculture and forest products, mineral 
                  oils,  ores  and  gases  to  the  extent  that  they  are  measured  at  net  realisable 
                  value; 
 
            e     Machinery spares, which can be used only in connection with a tangible fixed 
                  asset  and  their  use  is  expected  to  be  irregular,  shall  be  dealt  with  in 
                  accordance  with  the  Income  Computation  and  Disclosure  Standard  on 
                  tangible fixed assets.    
Definitions 
 
2 1   The following terms are used in this Income Computation and Disclosure  Standard 
with the meanings specified: 
 
            a     "Inventories" are assets:  
         
                   i        held for sale in the ordinary course of business; 
 
                   ii       in the process of production for such sale;  
 
                   iii      in the form of materials or supplies to be consumed in the production 
                            process or in the rendering of services.  
 
            b     "Net realisable value" is the estimated selling price in the ordinary course of 
                  business  less  the  estimated  costs  of  completion  and  the  estimated  costs 
                  necessary to make the sale.  
 
2 2       Words  and  expressions  used  and  not  defined  in  this  Income  Computation  and 
Disclosure Standard but defined in the Act shall have the meanings assigned to them in that 
Act. 
 
Measurement  
 



3.      Inventories shall be valued at cost, or net realisable value, whichever is lower.  
 
Cost of Inventories  
         
4.    Cost  of  inventories  shall  comprise  of  all  costs  of  purchase,  costs  of  services,  costs  of 
conversion  and  other  costs  incurred  in  bringing  the  inventories  to  their  present  location 
and condition.  
 
Costs of Purchase  
 
5. The costs of purchase shall consist of purchase price including duties and taxes, freight 
inwards  and  other  expenditure  directly  attributable  to  the  acquisition.  Trade  discounts, 
rebates and other similar items shall be deducted in determining the costs of purchase.  
 
Costs of Services 
 
6. The costs of services in the case of a service provider shall consist of labour and other 
costs  of  personnel  directly  engaged  in  providing  the  service  including  supervisory 
personnel and attributable overheads.  
 
Costs of Conversion 
 
7.    The costs of conversion of inventories shall include costs directly related to the units of 
production and a systematic allocation of fixed and variable production overheads that are 
incurred in converting materials into finished goods. Fixed production overheads shall be 
those indirect costs of production that remain relatively constant regardless of the volume 
of  production.  Variable  production  overheads  shall  be  those  indirect  costs  of  production 
that vary directly or nearly directly, with the volume of production.  
 
8.   The allocation of fixed production overheads for the purpose of their inclusion in the 
costs  of  conversion  shall  be  based  on  the  normal  capacity  of  the  production  facilities. 
Normal  capacity  shall  be  the  production  expected  to  be  achieved  on  an  average  over  a 
number of periods or seasons under normal circumstances, taking into account the loss of 
capacity resulting from planned maintenance. The actual level of production shall be used 
when  it  approximates  to  normal  capacity.  The  amount  of  fixed  production  overheads 
allocated  to  each  unit  of  production  shall  not  be  increased  as  a  consequence  of  low 
production  or  idle  plant.  Unallocated  overheads  shall  be  recognised  as  an  expense  in  the 
period in which they are incurred. In periods of abnormally high production, the amount of 
fixed  production  overheads  allocated  to  each  unit  of  production  is  decreased  so  that 
inventories  are  not  measured  above  the  cost.  Variable  production  overheads  shall  be 
assigned  to  each  unit  of  production  on  the  basis  of  the  actual  use  of  the  production 
facilities.  
 
9.       Where  a  production  process  results  in  more  than  one  product  being  produced 
simultaneously and the costs of conversion of each product are not separately identifiable, 
the costs shall be allocated between the products on a rational and consistent basis.  Where 
byproducts,  scrap  or  waste  material  are  immaterial,  they  shall  be  measured  at  net 
realisable value and this value shall be deducted from the cost of the main product.  
 
Other Costs 
 
10.      Other costs shall be included in the cost of inventories only to the extent that they 
are incurred in bringing the inventories to their present location and condition.  
 
11.      Interest and other borrowing costs shall not be included in the costs of inventories, 
unless  they  meet  the  criteria  for  recognition  of  interest  as  a  component  of  the  cost  as 
specified in the Income Computation and Disclosure Standard on borrowing costs. 
 
Exclusions from the Cost of Inventories  
 
12.   In determining the cost of inventories in accordance with paragraphs 4 to paragraphs 
11,      the  following  costs  shall  be  excluded  and  recognised  as  expenses  of  the  period  in 
which they are incurred, namely:--   
 
         a Abnormal amounts of wasted materials, labour, or other production costs; 
         b Storage costs, unless those costs are necessary in the production process prior to 
              a further production stage; 
         c Administrative  overheads  that  do  not  contribute  to  bringing  the  inventories  to 
              their present location and condition ;  
         d Selling costs.  
 
Cost Formulae 
 
13.    The Cost of inventories of items  
 
         i           that are not ordinarily interchangeable; and  
         ii          goods or services  produced and segregated for specific projects  
       shall be assigned by specific identification of their individual costs.  
 
14.   `Specific identification of cost' means specific costs are attributed to identified items of 
inventory.  
 
15.    Where  there  are  a  large  numbers  of  items  of  inventory  which  are  ordinarily 
interchangeable, specific identification of costs shall not be made.  
 
Firstin Firstout and Weighted Average Cost Formula 
 
16.  Cost  of  inventories,  other  than  the  inventory  dealt  with  in  paragraph  13,  shall  be 
assigned  by  using  the  Firstin  Firstout  FIFO ,  or  weighted  average  cost  formula.  The 
formula  used  shall  reflect  the  fairest  possible  approximation  to  the  cost  incurred  in 
bringing the items of inventory to their present location and condition.  
 
17.      The  FIFO  formula  assumes  that  the  items  of  inventory  which  were  purchased  or 
produced  first  are  consumed  or  sold  first,  and  consequently  the  items  remaining  in 
inventory at the end of the period are those most recently purchased or produced. Under 
the weighted average cost formula, the cost of each item is determined from the weighted 
average of the cost of similar items at the beginning of a period and the cost of similar items 
purchased  or  produced  during  the  period.  The  average  shall  be  calculated  on  a  periodic 
basis, or as each additional shipment is received, depending upon the circumstances.  
 
Retail Method 
 
18.    Where  it  is  impracticable  to  use  the  costing  methods  referred  to  in  paragraph  16, 
the retail method can be used in the retail trade for measuring inventories of large number 
of  rapidly  changing  items  that  have  similar  margins.  The  cost  of  the  inventory  is 
determined by reducing from the sales value of the inventory, the appropriate percentage 
gross  margin.    The  percentage  used  takes  into  consideration  inventory,  which  has  been 
marked down to below its original selling price.  
 
Net Realisable Value  
 
19.    Inventories  shall  be  written  down  to  net  realisable  value  on  an  itembyitem  basis. 
Where `items of inventory' relating to the same product line having similar purposes or end 
uses  and  are  produced  and  marketed  in  the  same  geographical  area  and  cannot  be 
practicably  evaluated  separately  from  other  items  in  that  product  line,  such  inventories 
shall be grouped together and written down to net realisable value on an aggregate basis.  
 
20.  Net realisable value shall be based on the most reliable evidence available at the time 
of  valuation.  The  estimates  of  net  realisable  value  shall  also  take  into  consideration  the 
purpose  for  which  the  inventory  is  held.  The  estimates  shall  take  into  consideration 
fluctuations of price or cost directly relating to events occurring after the end of previous 
year  to  the  extent  that  such  events  confirm  the  conditions  existing  on  the  last  day  of  the 
previous year.  
 
21.     Materials and other supplies held for use in the production of inventories shall not 
be  written  down  below  the  cost,  where  the  finished  products  in  which  they  shall  be 
incorporated are expected to be sold at or above the  cost. Where there has been a decline 
in the price of materials and it is estimated that the cost of finished products will exceed the 
net  realisable  value,  the  value  of  materials  shall  be  written  down  to  net  realisable  value 
which shall be the replacement cost of such materials. 
 
Value of Opening Inventory 
 
22.     The value of the inventory as on the beginning of the previous year shall be 
         
            i     the  cost  of  inventory  available,  if  any,  on  the  day  of  the  commencement  of 
                 the  business  when    the  business  has  commenced  during  the  previous  year; 
                 and 
            ii   the  value  of  the  inventory  as  on  the  close  of  the  immediately    preceding  
                 previous year, in any other case.        
 
Change of Method of Valuation of Inventory  
 
23.     The  method  of  valuation  of  inventories  once  adopted  by  a  person  in  any  previous 
year shall not be changed without reasonable cause.  
 
Valuation of Inventory in Case of Certain Dissolutions  
 
24.     In  case  of  dissolution  of  a  partnership  firm  or  association  of  person  or  body  of 
individuals, notwithstanding whether business is discontinued or not, the inventory on the 
date of dissolution shall be valued at the net realisable value.  
 
Transitional Provisions 
 
25.    Interest and other borrowing costs, which do not meet the criteria for recognition of 
interest as a component of the cost as per para 11, but included in the cost of the opening 
inventory as on the 1st day of April, 2015, shall be taken into account for determining cost 
of such inventory for valuation as on the close of the previous year beginning on or after 1st 
day of April, 2015 if such inventory continue to remain part of inventory as on the close of 
the previous year beginning on or after 1st day of April, 2015. 
 
Disclosure 
 
26.    The following aspects shall be disclosed, namely:--   
 
        a       the accounting policies adopted in measuring inventories including the cost 
                formulae used; and  
        b       the total carrying amount of inventories and its classification appropriate to 
                a person. 
 
C.  Income  Computation  and  Disclosure  Standard  III  relating  to  construction 
contracts 
 
Preamble 
 
This Income Computation and Disclosure Standard 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. 
 
In  the  case  of  conflict  between  the  provisions  of  the  Incometax  Act,  1961 `the  Act'   and 
this Income Computation and Disclosure Standard, the provisions of the Act shall prevail to 
that extent. 
 
Scope  
 
1.        This  Income  Computation  and  Disclosure  Standard  should  be  applied  in 
          determination of income for a construction contract of a contractor. 
 
 
Definitions  
 
2  1   The following terms are used in this Income Computation and Disclosure Standard 
          with the meanings specified:  
 
          a "Construction contract" is a contract specifically negotiated for the construction 
             of  an  asset  or  a  combination  of  assets  that  are  closely  interrelated  or 
             interdependent  in  terms  of  their  design,  technology  and  function  or  their 
             ultimate purpose or use and includes : 
              
                 i      contract for the rendering of services which are directly related to the 
                        construction of the asset, for example, those for the services of project 
                        managers and architects;  
 
                 ii     contract for destruction or restoration of assets, and the restoration of 
                        the environment following the demolition of assets.  
 
          b "Fixed price contract" is a construction contract in which the contractor agrees 
             to a fixed contract price, or a fixed rate per unit of output, which may be subject 
             to cost escalation clauses.  
       
          c "Cost  plus  contract"  is  a  construction  contract  in  which  the  contractor  is 
             reimbursed  for  allowable  or  otherwise  defined  costs,  plus  a  mark  up  on  these 
             costs or a fixed fee.  
 
            d "Retentions"  are  amounts  of  progress  billings  which  are  not  paid  until  the 
                satisfaction  of  conditions  specified  in  the  contract  for  the  payment  of  such 
                amounts or until defects have been rectified.  
         
            e "Progress  billings"  are  amounts  billed  for  work  performed  on  a  contract 
                whether or not they have been paid by the customer.  
         
            f "Advances"  are  amounts  received  by  the  contractor  before  the  related  work  is 
                performed.  
 
2 2         Words  and  expressions  used  and  not  defined  in  this    Income  Computation  and 
            Disclosure  Standard  but  defined  in  the  Act  shall  have  the  meaning  respectively 
            assigned to them in the Act.  
 
3.      A construction contract may be negotiated for the construction of a single asset. A 
        construction  contract  may  also  deal  with  the  construction  of  a  number  of  assets 
        which  are  closely  interrelated  or  interdependent  in  terms  of  their  design, 
        technology and function or their ultimate purpose or use.  
             
4.      Construction contracts are formulated in a number of ways which, for the purposes 
        of  this  Income  Computation  and  Disclosure  Standard,  are  classified  as  fixed  price 
        contracts  and  cost  plus  contracts.  Some  construction  contracts  may  contain 
        characteristics of both a fixed price contract and a cost plus contract, for example, 
        in the case of a cost plus contract with an agreed maximum price.  
 
Combining and Segmenting Construction Contracts  
 
5.      The  requirements  of  this  Income  Computation  and  Disclosure  Standard  shall  be 
        applied  separately  to  each  construction  contract  except  as  provided  for  in 
        paragraphs 6, 7 and 8 herein. For reflecting the substance of a contract or a group 
        of  contracts,  where  it  is  necessary,  the  Income  Computation  and  Disclosure 
       Standard  should  be  applied  to  the  separately  identifiable  components  of  a  single 
       contract or to a group of contracts together.  
 
6.     Where a contract covers a number of assets, the construction of each asset should 
       be treated as a separate construction contract when:  
        
           a    separate proposals have been submitted for each asset;  
           b    each  asset  has  been  subject  to  separate  negotiation  and  the  contractor  and 
                customer have been able to accept or reject that part of the contract relating 
                to each asset; and  
           c    the costs and revenues of each asset can be identified.  
 
7.     A  group  of  contracts,  whether  with  a  single  customer  or  with  several  customers, 
       should be treated as a single construction contract when:  
        
           a    the group of contracts is negotiated as a single package;  
           b    the contracts are so closely interrelated that they are, in effect, part of a single 
                project with an overall profit margin; and  
           c    the contracts are performed concurrently or in a continuous sequence.  
 
8.     Where a contract provides for the construction of an additional asset at the option 
       of the customer or is amended to include the construction of an additional asset, the 
       construction  of  the  additional  asset  should  be  treated  as  a  separate  construction 
       contract when:  
        
           a    the asset differs significantly in design, technology or function from the asset 
                or assets covered by the original contract; or  
           b    the  price  of  the  asset  is  negotiated  without  having  regard  to  the  original 
                contract price.  
 
Contract Revenue  
 
9.              Contract  revenue  shall  be  recognised  when  there  is  reasonable  certainty  of  its 
        ultimate collection. 
 
10.      Contract revenue shall comprise of:  
           
              a    the initial amount of revenue agreed in the contract, including retentions; and  
              b    variations in contract work, claims and incentive payments:  
                    
                       i       to the extent that it is probable that they will result in revenue; and  
                       ii      they are capable of being reliably measured.  
 
11.      Where contract revenue already recognised as income is subsequently written off 
         in  the  books  of  accounts  as  uncollectible,  the  same  shall  be  recognised  as  an 
         expense and not as an adjustment of the amount of contract revenue.  
 
Contract Costs  
 
12.      Contract costs shall comprise of : 
           
              a    costs that relate directly to the specific contract;  
              b    costs that are attributable to contract activity in general and can be allocated 
                   to the contract;   
              c    such  other  costs  as  are  specifically  chargeable  to  the  customer  under  the 
                   terms of the contract; and 
              d   allocated  borrowing  costs  in  accordance  with  the  Income  Computation  and 
                   Disclosure Standard  on Borrowing Costs.  
 
         These  costs  shall  be  reduced  by  any  incidental  income,  not  being  in  the  nature  of 
         interest, dividends or capital gains, that is not included in contract revenue. 
 
13.     Costs that cannot be attributed to any contract activity or cannot be allocated to a 
        contract shall be excluded from the costs of a construction contract.  
         
14.     Contract  costs  include  the  costs  attributable  to  a  contract  for  the  period  from  the 
        date of securing the contract to the final completion of the contract. Costs that are 
        incurred  in  securing  the  contract  are  also  included  as  part  of  the  contract  costs, 
        provided  
 
        a they can be separately identified; and  
        b it is probable that the contract shall be obtained.  
             
            When costs incurred in securing a contract are recognised as an expense in the 
            period in which they are incurred, they are not included in contract costs when 
            the contract is obtained in a subsequent period.  
 
15.     Contract  costs  that  relate  to  future  activity  on  the  contract  are  recognised  as  an 
        asset. Such costs represent an amount due from the customer and are classified as 
        contract work in progress.  
 
Recognition of Contract Revenue and Expenses  
 
16.     Contract  revenue  and  contract  costs  associated  with  the  construction  contract 
        should  be  recognised  as  revenue  and  expenses  respectively  by  reference  to  the 
        stage of completion of the contract activity at the reporting date.  
 
17.     The recognition of revenue and expenses by reference to the stage of completion of 
        a  contract  is  referred  to  as  the  percentage  of  completion  method.  Under  this 
        method, contract revenue is matched with the contract costs incurred in reaching 
        the stage of completion, resulting in the reporting of revenue, expenses and profit 
        which can be attributed to the proportion of work completed.  
 
18.     The stage of completion of a contract shall be determined with reference to:  
             
                a    the  proportion  that  contract  costs  incurred  for  work  performed  upto  the 
                    reporting date bear to the estimated total contract costs; or  
                b    surveys of work performed; or  
                c    completion of a physical proportion of the contract work.  
 
        Progress payments and advances received from customers are not determinative of 
        the stage of completion of a contract.  
 
19.     When  the  stage  of  completion  is  determined  by  reference  to  the  contract  costs 
        incurred  upto  the  reporting  date,  only  those  contract  costs  that  reflect  work 
        performed  are  included  in  costs  incurred  upto  the  reporting  date.  Contract  costs 
        which are excluded are:  
         
            a    contract costs that relate to future activity on the contract; and  
            b    payments made  to  subcontractors  in  advance  of  work  performed  under  the 
                    subcontract.  
 
20.     During the early stages of a contract, where the outcome of the contract cannot be 
        estimated  reliably  contract  revenue  is  recognised  only  to  the  extent  of  costs 
        incurred. The early stage of a contract shall not extend beyond 25 % of the stage of 
        completion. 
 
Changes in Estimates  
 
21.     The  percentage  of  completion  method  is  applied  on  a  cumulative  basis  in  each 
        previous  year  to  the  current  estimates  of  contract  revenue  and  contract  costs.   
        Where  there  is  change  in  estimates,  the  changed  estimates  shall  be  used  in 
        determination  of  the  amount  of  revenue  and  expenses  in  the  period  in  which  the 
        change is made and in subsequent periods.  
 
Transitional Provisions 
 
22.  Contract  revenue  and  contract  costs  associated  with  the  construction  contract,  which 
commenced on or before the 31st day of March, 2015 but not completed by the said date, 
shall be recognised as revenue and costs respectively in accordance with the provisions of 
this  standard.  The  amount  of  contract  revenue,  contract  costs  or  expected  loss,  if  any, 
recognised for the said contract for any previous year commencing on or before the 1st day 
of  April,  2014  shall  be  taken  into  account  for  recognising  revenue  and  costs  of  the  said 
contract  for  the  previous  year  commencing  on  the  1st  day  of  April,  2015  and  subsequent 
previous years. 
 
Disclosure  
 
23.     A person shall disclose:  
          
             a    the amount of contract revenue recognised as revenue in the period; and 
             b    the  methods  used  to  determine  the  stage  of  completion  of  contracts  in 
                 progress.  
 
24.     A person shall disclose the following for contracts in progress at the reporting date, 
        namely:--  
          
             a    amount of costs incurred and recognised profits  less recognised losses  upto 
                 the reporting date;  
             b    the amount of advances received; and  
             c    the amount of retentions.  
          
D. Income  Computation  and  Disclosure  Standard  IV  relating  to  revenue 
recognition 
                                                         
    Preamble 
 
    This Income Computation and Disclosure Standard 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. 
 
    In the case of conflict between the provisions of the Incometax Act, 1961  `the Act'  and 
    this Income Computation and Disclosure Standard, the provisions of the Act shall prevail to 
    that extent. 
     
    Scope 
     
    1 1   This  Income  Computation  and  Disclosure  Standard  deals  with  the  bases  for  
          recognition  of  revenue  arising  in  the  course  of  the  ordinary  activities  of  a  person 
          from  
      
              i    the sale of goods; 
           
              ii   the rendering of services;  
           
              iii   the  use  by  others  of  the  person's  resources  yielding  interest,  royalties  or 
          dividends. 
     
    1 2    This Income Computation and Disclosure Standard does not deal with the aspects of 
          revenue  recognition  which  are  dealt  with  by  other  Income  Computation  and 
          Disclosure Standards. 

     

    Definitions 
     
2 1   The  following  term  is  used  in  this  Income  Computation  and  Disclosure  Standard 
        with the meanings specified: 
 
            a "Revenue" is the gross inflow of cash, receivables or other consideration arising 
              in the course of the ordinary activities of a person from the sale of goods, from 
              the  rendering  of  services,  or  from  the  use  by  others  of  the  person's  resources 
              yielding interest, royalties or dividends.  In an agency relationship, the revenue 
              is  the  amount  of  commission  and  not  the  gross  inflow  of  cash,  receivables  or 
              other consideration.  
                  
2 2    Words  and  expressions  used  and  not  defined  in  this  Income  Computation  and 
        Disclosure Standard but defined in the Act shall have the meanings assigned to them 
        in that Act. 
 
Sale of Goods 
 
3.  In  a  transaction  involving  the  sale  of  goods,  the  revenue  shall  be  recognised  when  the 
seller  of  goods  has  transferred  to  the  buyer  the  property  in  the  goods  for  a  price  or  all 
significant  risks  and  rewards  of  ownership  have  been  transferred  to  the  buyer  and  the 
seller  retains  no  effective  control  of  the  goods  transferred  to  a  degree  usually  associated 
with ownership.  In a situation, where transfer of property in goods does not coincide with 
the transfer of significant risks and rewards of ownership, revenue in such a situation shall 
be recognised at the time of transfer of significant risks and rewards of ownership to the 
buyer.   
 
4. Revenue shall be recognised when there is reasonable certainty of its ultimate collection.  
 
5. Where the ability to assess the ultimate collection with reasonable certainty is lacking at 
the  time  of  raising  any  claim  for  escalation  of  price  and  export  incentives,  revenue 
recognition  in  respect  of  such  claim  shall  be  postponed  to  the  extent  of  uncertainty 
involved.  
 
Rendering of Services  
 
6.  Revenue  from  service  transactions  shall  be  recognised  by  the  percentage  completion 
method. Under this method, revenue from service transactions is matched with the service 
transactions  costs  incurred  in  reaching  the  stage  of  completion,  resulting  in  the 
determination of revenue, expenses and profit which can be attributed to the proportion of 
work  completed.  Income  Computation  and  Disclosure  Standard  on  construction  contract 
also requires the recognition of revenue on this basis. The requirements of that Standard 
shall  mutatis mutandis apply to the recognition of revenue and the associated expenses for 
a service transaction. 
 
The Use of Resources by Others Yielding Interest, Royalties or Dividends 
 
7.  Interest  shall  accrue  on  the  time  basis  determined  by  the  amount  outstanding  and  the 
rate applicable. Discount or premium on debt securities held is treated as though it were 
accruing over the period to maturity. 
 
8. Royalties shall accrue in accordance with the terms of the relevant agreement and shall 
be recognised on that basis unless, having regard to the substance of the transaction, it is 
more appropriate to recognise revenue on some other systematic and rational basis. 
 
9. Dividends are recognised in accordance with the provisions of the Act. 
 
Transitional Provisions 
 
10.  The  transitional  provisions  of  Income  Computation  and  Disclosure  Standard  on 
construction  contract shall  mutatis mutandis  apply  to  the  recognition  of  revenue  and  the 
associated  costs  for  a  service  transaction  undertaken  on  or  before  the  31st  day  of  March, 
2015 but not completed by the said date. 
 
11.  Revenue  for  a  transaction,  other  than  a  service  transaction  referred  to  in  Para  10, 
undertaken  on  or  before  the  31st  day  of  March,  2015  but  not  completed  by  the  said  date 
shall be recognised in accordance with the provisions of this standard for the previous year 
commencing  on  the  1st  day  of  April,  2015  and  subsequent  previous  year.  The  amount  of 
revenue, if any, recognised for the said transaction for any previous year commencing on or 
before the 1st day of April, 2014 shall be taken into account for recognising revenue for the 
said  transaction  for  the  previous  year  commencing  on  the  1st  day  of  April,  2015  and 
subsequent previous years. 
 
 
 
Disclosure 
 
12.  Following disclosures shall be made in respect of revenue recognition, namely:-- 
 
          a         in  a  transaction  involving  sale  of  good,  total  amount  not  recognised  as 
                 revenue  during  the  previous  year  due  to  lack  of  reasonably  certainty  of  its 
                 ultimate collection along with nature of uncertainty; 
 
             b    the  amount  of  revenue  from  service  transactions  recognised  as  revenue 
                 during the previous year; 
          
             c    the method used to determine the stage of completion of service transactions 
                 in progress; and  
 
             d   for service transactions in progress at the end of previous year: 
 
                  i      amount  of  costs  incurred  and  recognised  profits  less  recognised 
                         losses  upto end of previous year;  
          
                    ii      the amount of advances received; and  
              
                    iii    the amount of retentions.  
     

    E.  Income  Computation  and  Disclosure  Standard  V  relating  to  tangible  fixed 
    assets 

    Preamble 
 
    This Income Computation and Disclosure Standard 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. 
 
    In the case of conflict between the provisions of the Incometax Act, 1961  `the Act'  and 
    this Income Computation and Disclosure Standard, the provisions of the Act shall prevail to 
    that extent. 
                                                        
    Scope 
     
    1.  This Income Computation and Disclosure Standard deals with the treatment of tangible 
        fixed assets. 
     

    Definitions 
     

    2 1   The following terms are used in this Income Computation and Disclosure Standard 
           with the meanings specified: 
     
             a      "Tangible  fixed  asset"  is  an  asset  being  land,  building,  machinery,  plant  or 
           furniture  held  with  the  intention  of  being  used  for  the  purpose  of  producing  or 
           providing goods or services and is not held for sale in the normal course of business. 
   
               b     "Fair value" of an asset is the amount for which that asset could be exchanged 
           between knowledgeable, willing parties in an arm's length transaction.   
   
  2 2                Words  and  expressions  used  and  not  defined  in  this  Income  Computation 
           and Disclosure Standard but defined in the Act shall have the meanings assigned to 
           them in that Act. 
   
  Identification of Tangible Fixed Assets 
   
  3.       The definition in clause  a  of subparagraph  1  of paragraph 2 provides criteria for 
           determining whether an item is to be classified as a tangible fixed asset. 
   
  4.       Standby  equipment  and  servicing  equipment  are  to  be  capitalised.  Machinery 
           spares  shall  be  charged  to  the  revenue as and  when  consumed.  When  such  spares 
           can be used only in connection with an item of tangible fixed asset and their use is 
           expected to be irregular, they shall be capitalised. 
   
  Components of Actual Cost 

   5.      The actual cost of an acquired tangible fixed asset shall comprise its purchase price, 
           import  duties  and  other  taxes,  excluding  those  subsequently  recoverable,  and  any 
           directly attributable expenditure on making the asset ready for its intended use. Any 
           trade discounts and rebates shall be deducted in arriving at the actual cost. 
   
  6.       The cost of a tangible fixed asset may undergo changes subsequent to its acquisition 
           or construction on account of  
               i     price adjustment, changes in duties or similar factors; or  
               ii   exchange  fluctuation  as  specified  in  Income  Computation  and  Disclosure 
           Standard on the effects of changes in foreign exchange rates. 
   
7.     Administration  and  other  general  overhead  expenses  are  to  be  excluded  from  the 
       cost  of  tangible  fixed  assets  if  they  do  not  relate  to  a  specific  tangible  fixed  asset. 
       Expenses  which  are  specifically  attributable  to  construction  of  a  project  or  to  the 
       acquisition of a tangible fixed asset or bringing it to its working condition, shall be 
       included  as  a  part  of the  cost  of  the  project or  as a  part  of the  cost  of the  tangible 
       fixed asset. 
 
8.     The  expenditure  incurred  on  startup  and  commissioning  of  the  project,  including 
       the  expenditure  incurred  on  test  runs  and  experimental  production,  shall  be 
       capitalised.  The  expenditure  incurred  after  the  plant  has  begun  commercial 
       production,  that  is,  production  intended  for  sale  or  captive  consumption,  shall  be 
       treated as revenue expenditure. 
 
 
 
Self constructed Tangible Fixed Assets 
 
9.     In  arriving  at  the  actual  cost  of  selfconstructed  tangible  fixed  assets,  the  same 
       principles shall apply as those described in paragraphs 5 to 8. Cost of construction 
       that relate directly to the specific tangible fixed asset and costs that are attributable 
       to  the  construction  activity  in  general  and  can  be  allocated  to  the  specific tangible 
       fixed asset shall be included in actual cost.  Any internal profits shall be eliminated 
       in arriving at such costs. 
 
Non monetary Consideration 

10.    When a tangible fixed asset is acquired in exchange for another asset, the fair value 
of the   tangible fixed asset so acquired shall be its actual cost.   
 
11.    When  a  tangible  fixed  asset  is  acquired  in  exchange  for  shares  or  other  securities, 
the fair value of the tangible fixed asset so acquired shall be its actual cost.   
 
Improvements and Repairs 
 
12.    An Expenditure that increases the future benefits from the existing asset beyond its 
       previously assessed standard of performance is added to the actual cost. 
 
13.    The cost of an addition or extension to an existing tangible fixed asset which is of a 
       capital nature and which becomes an integral part of the existing tangible fixed asset 
       is  to  be  added  to  its  actual  cost.  Any  addition  or  extension,  which  has  a  separate 
       identity  and  is  capable  of  being  used  after  the  existing  tangible  fixed  asset  is 
       disposed of, shall be treated as separate asset. 
 
 
 
 
Valuation of Tangible Fixed Assets in Special Cases 
 
14.    Where a person owns tangible fixed assets jointly with others, the proportion in the 
       actual cost, accumulated depreciation and written down value is grouped together 
       with similar fully owned tangible fixed assets. Details of such jointly owned tangible 
       fixed assets shall be indicated separately in the tangible fixed assets register. 
 
15.    Where several assets are purchased for a consolidated price, the consideration shall 
       be apportioned to the various assets on a fair basis. 

 
Transitional Provisions 
 
16.  The  actual  cost  of  tangible  fixed  assets,  acquisition  or  construction  of  which 
commenced on or before the 31st day of March, 2015 but not completed by the said date,  
shall  be  recognised  in  accordance  with  the  provisions  of  this  standard.  The  amount  of 
actual cost, if any, recognised for the said assets  for any previous year commencing on or 
before the 1st day of April, 2014 shall be taken into account for recognising actual cost of 
the  said  assets  for  the  previous  year  commencing  on  the  1st  day  of  April,  2015  and 
subsequent previous years. 

Depreciation 
 

17.    Depreciation  on  a  tangible  fixed  asset  shall  be  computed  in  accordance  with  the 
       provisions of the Act.    

 

Transfers 
 

18.    Income arising on transfer of a tangible fixed asset shall be computed in accordance 
       with the provisions of the Act. 
 
Disclosures 
 
19.    Following disclosure shall be made in respect of tangible fixed assets, namely:--   
 
        a      description of asset or block of assets; 
 
        b      rate of depreciation; 
 
        c      actual cost or written down value, as the case may be; 
 
        d      additions  or  deductions  during  the  year  with  dates;  in  the  case  of  any 
               addition of an asset, date put to use; including adjustments on account of-- 
 
                i     Central  Value  Added  Tax  credit  claimed  and  allowed  under  the 
                      CENVAT Credit Rules, 2004; 
     
                       ii      change in rate of exchange of currency;  
     
                       iii     subsidy or grant or reimbursement, by whatever name called; 
     
             e         depreciation Allowable; and 
     
             f         written down value at the end of year. 
     
    F. Income Computation and Disclosure Standard VI relating to the effects of 
    changes in foreign exchange rates 

     
    Preamble 
    This Income Computation and Disclosure Standard 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. 
 
    In the case of conflict between the provisions of the Incometax Act, 1961  `the Act'  and 
    this Income Computation and Disclosure Standard, the provisions of the Act shall prevail to 
    that extent. 
     
    Scope 
     
    1.       This Income Computation and Disclosure Standard deals with:  
     
              a treatment of transactions in foreign currencies; 
                    
              b translating the financial statements of foreign operations;  
                    
            c treatment  of  foreign  currency  transactions  in  the  nature  of  forward  exchange 
              contracts. 
 
Definitions 
 
2.  1     The following terms are used in this Income Computation and Disclosure Standard 
with the meanings specified: 
 
           a   "Average rate" is the mean of the exchange rates in force during a period.   
        
           b  "Closing rate" is the exchange rate at the last day of the previous year. 
               
           c   "Exchange  difference"  is  the  difference  resulting  from  reporting  the  same 
       number  of  units  of  a  foreign  currency  in  the  reporting  currency  of  a  person  at 
       different exchange rates. 
        
           d  "Exchange rate" is the ratio for exchange of two currencies. 
        
        
           e   "Foreign currency" is a currency other than the reporting currency of a person. 
        
           f     "Foreign  operations  of  a  person"  is  a  branch,  by  whatever  name  called,  of  that 
       person, the activities of which are based or conducted in a country other than India. 
        
           g     "Foreign  currency  transaction"  is  a  transaction  which  is  denominated  in  or 
       requires  settlement  in  a  foreign  currency,  including  transactions  arising  when  a 
       person:-- 
 
               i    buys  or  sells  goods  or  services  whose  price  is  denominated  in  a  foreign 
                    currency; or 
 
           ii    borrows  or  lends  funds  when  the  amounts  payable  or  receivable  are 
                 denominated in a foreign currency; or 
                  
          iii    becomes a party to an unperformed forward exchange contract; or 
                  
          iv     otherwise  acquires  or  disposes  of  assets,  or  incurs  or  settles  liabilities, 
                 denominated in a foreign currency. 
 
        h   "Forward  exchange  contract"  means  an  agreement  to  exchange  different 
    currencies  at  a  forward  rate,  and  includes  a  foreign  currency  option  contract  or 
    another financial instrument of a similar nature; 
     
        i   "Forward rate" is the specified exchange rate for exchange of two Currencies at a 
    specified future date; 
     
        j   "Indian  currency"  shall  have  the  meaning  as  assigned  to  it  in  section  2  of  the 
    Foreign Exchange Management Act, 1999  42 of 1999 ; 
     
        k   "Integral foreign operation" is a foreign operation, the activities of which are an 
    integral part of the operation of the person; 
     
        l     "Monetary  items"  are  money  held  and  assets  to  be  received  or  liabilities  to  be 
    paid in fixed or determinable amounts of money. Cash, receivables, and payables are 
    examples of monetary items;  
     
        m     "Nonintegral  foreign  operation"  is  a  foreign  operation  that  is  not  an  integral 
    foreign operation; 
     
        n  "Nonmonetary items" are assets and liabilities other than monetary items. Fixed 
    assets, inventories, and investments in equity shares are examples of nonmonetary 
    items; 
           
              o   "Reporting  currency"  means  Indian  currency  except  for  foreign  operations 
          where it shall mean currency of the country where the operations are carried out.  
 
       2  Words  and  expressions  used  and  not  defined  in  this  Income  Computation  and 
          Disclosure Standard but defined in the Act shall have the meaning assigned to them 
          in the Act. 
 
Foreign Currency Transactions 
 
Initial Recognition 
 
3 1   A  foreign  currency  transaction  shall  be  recorded,  on  initial  recognition  in  the 
       reporting  currency,  by  applying  to  the  foreign  currency  amount  the  exchange  rate 
       between the reporting currency and the foreign currency at the date of the transaction.  
 
    2   An average rate for a week or a month that approximates the actual rate at the date of 
      the  transaction  may  be  used  for  all  transaction  in  each  foreign  currency  occurring 
      during  that  period.    If  the  exchange  rate  fluctuates  significantly,  the  actual  rate  at  the 
      date of the transaction shall be used. 
 
Conversion at Last Date of Previous Year 
 
4.  At last day of each previous year:-- 
 
       a foreign  currency  monetary  items  shall  be  converted  into  reporting  currency  by 
              applying the closing rate; 
           
       b  where  the  closing  rate  does  not  reflect  with  reasonable  accuracy,  the  amount  in 
          reporting  currency  that  is  likely  to  be  realised  from  or  required  to  disburse,  a 
          foreign currency monetary item owing to restriction on remittances or the closing 
         rate being unrealistic and it is not possible to effect an exchange of currencies at that 
         rate, then the relevant monetary item shall be reported in the reporting currency at 
         the amount which is likely to be realised from or required to disburse such item at 
         the last date of the previous year; and 
          
     c       nonmonetary  items  in  a  foreign  currency  shall  be  converted  into  reporting 
             currency by using the exchange rate at the date of the transaction. 
 
Recognition of Exchange Differences 
 
5.  i   In respect of monetary items, exchange differences arising on the settlement thereof 
    or on conversion thereof at last day of the previous year shall be recognised as income 
    or as expense in that previous year. 
 
     ii  In  respect  of  nonmonetary  items,  exchange  differences  arising  on  conversion 
    thereof  at  the  last  day  of  the  previous  year  shall  not  be  recognised  as  income  or  as 
    expense in that previous year. 
 
 
 
Exceptions to Paragraphs 3, 4 and 5 
 
6.  Notwithstanding  anything  contained  in  paragraph  3,  4  and  5;  initial  recognition, 
    conversion  and  recognition  of  exchange  difference  shall  be  subject  to  provisions  of 
    section 43A of the Act or Rule 115 of Incometax Rules, 1962, as the case may be. 
 
Financial Statements of Foreign Operations 
 
Classification of Foreign Operations 
 
7.  1   The  method  used  to  translate  the  financial  statements  of  a  foreign  operation 
              depends on the way in which it is financed and operates in relation to a person. For 
              this  purpose,  foreign  operations  are  classified  as  either  "integral  foreign 
              operations" or "nonintegral foreign operations". 
 
        2   The  following  are  indications  that  a  foreign  operation  is  a  nonintegral  foreign 
              operation rather than an integral foreign operation:-- 
           
              a while the person may control the foreign operation, the activities of the foreign 
                      operation  are  carried  out  with  a  significant  degree  of  autonomy  from  the 
                      activities of the person; 
                   
              b transactions  with  the  person  are  not  a  high  proportion  of  the  foreign 
                      operation's activities; 
 
              c       the  activities  of  the  foreign  operation  are  financed  mainly  from  its  own 
                      operations or local borrowings; 
 
              d costs  of  labour,  material  and  other  components  of  the  foreign  operation's 
                      products or services are primarily paid or settled in the local currency; 
 
              e the  foreign  operation's  sales  are  mainly  in  currencies  other  than  Indian 
                      currency; 
 
              f       cash  flows  of  the  person  are  insulated  from  the  daytoday  activities  of  the 
                      foreign operation; 
 
              g sales  prices  for  the  foreign  operation's  products  or  services  are  not  primarily 
                      responsive  on  a  shortterm  basis  to  changes  in  exchange  rates  but  are 
                      determined more by local competition or local government regulation; 
           
           h there  is  an  active  local  sales  market  for  the  foreign  operation's  products  or 
                  services, although there also might be significant amounts of exports. 
  
 Integral Foreign Operations 
  
 8.  The  financial  statements  of  an  integral  foreign  operation  shall  be  translated  using  the 
      principles  and  procedures  in  paragraphs  3  to  6  as  if  the  transactions  of  the  foreign 
      operation had been those of the person himself. 
  
 Nonintegral Foreign Operations 
  
9.     1   In  translating  the  financial  statements  of  a  nonintegral  foreign  operation  for  a 
          previous year, the person shall apply the following, namely:-- 
  
           a the assets and liabilities, both monetary and nonmonetary, of  the nonintegral 
              foreign operation shall be translated at the closing rate; 
                         
           b income  and  expense  items  of  the  nonintegral  foreign  operation  shall  be 
              translated at exchange rates at the dates of the transactions; and 
               
           c all resulting exchange differences shall be recognised as income or as expenses 
              in that previous year. 
  
       2   Notwithstanding anything stated in subparagraph 1, translation and recognition of 
          exchange  difference  in  cases  referred  to  in  section  43A  of  the  Act  or  Rule  115  of 
          Incometax  Rules,  1962  shall  be  carried  out  in  accordance  with  the  provisions 
          contained in that section or that Rule, as the case may be.  
           
 Change in the Classification of a Foreign Operation 
  
10 1   When  there  is  a  change  in  the  classification  of  a  foreign  operation,  the  translation 
       procedures applicable to the revised classification should be applied from the date of 
       the change in the classification. 
 
   2  The consistency principle requires that foreign operation once classified as integral or 
       nonintegral is continued to be so classified. However, a change in the way in which a 
       foreign  operation  is  financed  and  operates  in  relation  to  the  person  may  lead  to  a 
       change in the classification of that foreign operation. 
 
Forward Exchange Contracts 
 
11.      1   Any premium or discount arising at the inception of a forward exchange contract 
               shall be amortised as expense or income over the life of the contract.  Exchange 
               differences on such a contract shall be recognised as income or as expense in the 
               previous year in which the exchange rates change.  Any profit or loss arising on 
               cancellation  or  renewal  shall  be  recognised  as  income  or  as  expense  for  the 
               previous year.   
 
         2    The provisions of subpara  1  shall apply provided that the contract: 
 
                a is not intended for trading or speculation purposes; and 
          
                b is entered into to establish the amount of the reporting currency required or 
                   available at the settlement date of the transaction. 
                    
         3         The provisions of subpara  1  shall not apply to the contract that is entered 
                   into  to  hedge  the  foreign  currency  risk  of  a  firm  commitment  or  a  highly 
                   probable forecast transaction.  For this purpose, firm commitment, shall not 
                   include assets and liabilities existing at the end of the previous year. 
 
            4          The  premium  or  discount  that  arises  on  the  contract  is  measured  by  the 
                       difference  between  the  exchange  rate  at  the  date  of  the  inception  of  the 
                       contract and the forward rate specified in the contract. Exchange difference 
                       on the contract is the difference between: 
                    
                        a the  foreign  currency  amount  of  the  contract  translated  at  the  exchange 
                          rate at the last day of the previous year, or the settlement date where the 
                          transaction is settled during the previous year; and  
 
                        b the  same  foreign  currency  amount  translated  at  the  date  of  inception  of 
                          the contract or the last day of the immediately preceding previous year, 
                          whichever is later. 
         
            5          Premium, discount or exchange difference on contracts that are intended for 
                       trading or speculation purposes, or that are entered into to hedge the foreign 
                       currency risk of a firm commitment or a highly probable forecast transaction 
                       shall be recognised at the time of settlement. 
         
Transitional Provisions 
 
12.  1  All foreign currency transactions undertaken on or after 1st day of April, 2015 shall 
be recognised in accordance with the provisions of this standard.  
 
    2  Exchange differences arising in respect of monetary items or nonmonetary items, on 
the settlement thereof during the previous year commencing on the 1st day of April, 2015 
or on conversion thereof at the last day of the previous year commencing on the 1st day of 
April,  2015,  shall  be  recognised  in  accordance  with  the  provisions  of  this  standard  after 
taking into account the amount recognised on the last day of the previous year ending on 
the 31st March,2015 for an item, if any, which is  carried forward from said previous year. 
 
    3  The financial statements of foreign operations for the previous year commencing on the 
1st day of April, 2015 shall be translated using the principles and procedures specified in 
this  standard  after  taking  into  account  the  amount  recognised  on  the  last  day  of  the 
previous year ending on the 31st March, 2015 for an item, if any, which is carried forward 
from said previous year. 
 
    4  All forward exchange contracts existing on the 1st day of April, 2015 or entered on or 
after  1st  day  of  April,  2015  shall  be  dealt  with  in  accordance  with  the  provisions  of  this 
standard after taking into account the income or expenses, if any, recognised in respect of 
said contracts for the previous year ending on or before the 31st March, 2015.  

 
G.  Income  Computation  and  Disclosure  Standard  VII  relating  to  government 
grants 
          
Preamble 
 

This Income Computation and Disclosure Standard 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 account. 
 

In  case of conflict between the provisions of the Income Tax Act, 1961  `the Act'  and this 
Income Computation and Disclosure Standard, the provisions of the Act shall prevail to that 
extent. 
 

Scope 

1.       This  Income  Computation  and  Disclosure  Standard  deals  with  the  treatment  of 
         Government  grants.  The  Government  grants  are  sometimes  called  by  other  names 
         such  as  subsidies,  cash  incentives,  duty  drawbacks,  waiver,  concessions, 
         reimbursements, etc. 
2.       This Income Computation and Disclosure Standard does not deal with:-- 
              
               a       Government assistance other than in the form of Government grants; and 
              
               b   Government participation in the ownership of the enterprise. 
 

Definitions   
 

3 1   The  following  terms  are  used  in  the  Income  Computation  and  Disclosure  Standard 
             with the meanings specified: 

                 a     "Government" refers to the Central  Government, State Governments, agencies 
                       and similar bodies, whether local, national or international. 

            b          "Government grants" are assistance by Government in cash or kind to a person 
                       for  past  or  future  compliance  with  certain  conditions.  They  exclude  those 
                       forms of Government assistance which cannot have a value placed upon them 
                       and  the  transactions  with  Government  which  cannot  be  distinguished  from 
                       the normal trading transactions of the person. 

3 2                    Words and expressions used and not defined in this Income Computation and 
                       Disclosure Standard but defined in the Act shall have the meaning assigned to 
                       them in the Act. 

 

 

Recognition of Government Grants 

4 1   Government  grants  should  not  be  recognised  until  there  is  reasonable  assurance 
                 that  i   the  person  shall  comply  with  the  conditions  attached  to  them,  and  ii  the 
                 grants shall be received.  
          
4 2   Recognition of Government grant shall not be postponed beyond the date of actual 
           receipt. 

Treatment of Government Grants 

5.         Where  the  Government  grant  relates  to  a  depreciable  fixed  asset  or  assets  of  a 
           person,  the  grant  shall  be  deducted  from  the  actual  cost  of  the  asset  or  assets 
           concerned  or  from  the  written  down  value  of  block  of  assets  to  which  concerned 
           asset or assets belonged to. 
 
6.         Where  the  Government  grant  relates  to  a  nondepreciable  asset  or  assets  of  a 
           person requiring   fulfillment of certain obligations, the grant   shall be recognised as 
           income  over  the  same  period  over  which  the  cost  of  meeting  such  obligations  is 
           charged to income.  

7.         Where the Government grant is of such a nature that it cannot be directly relatable 
           to the asset acquired, so much of the amount which bears to the total Government 
           grant, the same proportion as such asset bears to all the assets in respect of or with 
           reference to which the Government grant is so received, shall be deducted from the 
           actual cost of the asset or shall be reduced from the written down value of block of 
           assets to which the asset or assets belonged to.   

8.          The  Government  grant  that  is  receivable  as  compensation  for  expenses  or  losses 
           incurred in a previous financial year or for the purpose of giving immediate financial 
           support to the person with no further related costs, shall be recognised as income of 
           the period in which it is  receivable. 
 
9.         The  Government  grants  other  than  covered  by  paragraph  5,  6,  7,  and  8  shall  be 
           recognised  as  income  over  the  periods  necessary  to  match  them  with  the  related 
           costs which they are intended to compensate.  
 
10.        The Government grants in the form of nonmonetary assets, given at a concessional 
           rate, shall be accounted for on the basis of their acquisition cost. 
 

Refund of Government Grants 
 
11.     The amount refundable in respect of a Government grant referred to in paragraphs 
        6, 8 and 9 shall be applied first against any unamortised deferred credit remaining 
        in  respect  of  the  Government  grant.  To  the  extent  that  the  amount  refundable 
        exceeds  any  such  deferred  credit,  or  where  no  deferred  credit  exists,  the  amount 
        shall be charged to profit and loss statement.  
 
12.     The  amount  refundable  in  respect  of  a  Government  grant  related  to  a  depreciable 
        fixed asset or assets shall be recorded by increasing the actual cost or written down 
        value of block of assets by the amount refundable. Where the actual cost of the asset 
        is increased, depreciation on the revised actual cost or written down value shall be 
        provided prospectively at the prescribed rate. 
 
Transitional Provisions 
 
13.     All the Government grants which meet the recognition criteria of para 4 on or after 
        1st day of April, 2015 shall  be recognised for the previous year commencing on or 
        after 1st day of April, 2015 in accordance with the provisions of this standard after 
        taking into account the amount, if any, of the said Government grant recognised for 
        any previous year ending on or before 31st day of March, 2015.  
 
 
 
Disclosures 
 
14.     Following disclosure shall be made in respect of Government grants, namely:-- 
                   a     nature and extent of Government grants recognised during the previous year 
                        by  way  of  deduction  from  the  actual  cost  of  the  asset  or  assets  or  from  the 
                        written down value of block of assets during the previous year; 
                
                   b    nature and extent of Government grants recognised during the previous year 
                        as income; 

                   c     nature and extent of Government grants not recognised during the previous 
                        year by way of deduction from the actual cost of the asset or assets or from 
                        the written down value of block of assets and reasons thereof; and 

                   d     nature and extent of Government grants not recognised during the previous 
                        year as income and reasons thereof.  
         

        H. Income Computation and Disclosure Standard VIII relating to securities 

         
        Preamble 
     
        This Income Computation and Disclosure Standard 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 account. 
         
        In the case of conflict between the provisions of the Incometax Act, 1961  `the Act'  and 
        this Income Computation and Disclosure Standard, the provisions of the Act shall prevail to 
        that extent. 
 
         
        Scope 
         
        1.  This Income Computation and Disclosure Standard deals with securities held as stock
        intrade. 
 

2.   This Income Computation and Disclosure Standard does not deal with: 
 
         a        the  bases  for  recognition  of  interest  and  dividends  on  securities  which  are 
                  covered  by  the  Income  Computation  and  Disclosure  Standard  on  revenue 
                  recognition; 
 
         b        securities held by a person engaged in the business of insurance; 
 
         c        securities  held  by  mutual  funds,  venture  capital  funds,  banks  and  public 
                  financial  institutions  formed  under  a  Central  or  a  State  Act  or  so  declared 
                  under the Companies Act, 1956  1 of 1956  or the Companies Act, 2013  18 
                  of 2013 . 
 
Definitions 
 

3 1    The following terms are used in this Income Computation and Disclosure Standard 
with the meanings specified: 
 
         a "Fair  value"  is  the  amount  for  which  an  asset  could  be  exchanged  between  a 
               knowledgeable,  willing  buyer  and  a  knowledgeable,  willing  seller  in  an  arm's 
               length transaction. 
      
         b "Securities" shall have the meaning assigned to it in clause  h  of Section 2 of the 
               Securities Contract  Regulation  Act, 1956  42 of 1956 , other than Derivatives 
               referred to in subclause  1a  of that clause. 
 
3 2   Words  and  expressions  used  and  not  defined  in  this  Income  Computation  and 
Disclosure Standard but defined in the Act shall have the meaning respectively assigned to 
them in the Act. 
 
Recognition and Initial Measurement of Securities 
 
4.    A security on acquisition shall be recognised at actual cost. 
 
5.   The actual cost of a security shall comprise of its purchase price and include acquisition 
charges such as brokerage, fees, tax, duty or cess. 
 
6.      Where  a  security  is  acquired  in  exchange  for  other  securities,  the  fair  value  of  the 
security so acquired shall be its actual cost.    
 
7.   Where a security is acquired in exchange for another asset, the fair value of the security 
so acquired shall be its actual cost.  
 
8.   Where unpaid interest has accrued before the acquisition of an interestbearing security 
and  is  included  in  the  price  paid  for  the  security,  the  subsequent  receipt  of  interest  is 
allocated between preacquisition and postacquisition periods; the preacquisition portion 
of the interest is deducted from the actual cost. 
 
Subsequent Measurement of Securities 
 
 
9.        At  the  end  of  any  previous  year,  securities  held  as  stockintrade  shall  be  valued  at 
actual  cost  initially  recognised  or  net  realisable  value  at  the  end  of  that  previous  year, 
whichever is lower.   
 
10.    For the purpose of para 9, the comparison of actual cost initially recognised and net 
realisable value shall be done categorywise and not for each individual security.  For this 
purpose, securities shall be classified into the following categories, namely: 
            
         a   shares; 
            
                  b   debt securities; 
               
                  c   convertible securities; and 
           
                  d   any other securities not covered above.  
 
11.   The value of securities held as stockintrade of a business as on the beginning of the 
previous year shall be: 
               
                  a     the cost of securities available, if any, on the day of the commencement of the 
                        business when the business has commenced during the previous year; and 
 
                  b     the value of the securities of the business as on the close of the immediately 
                        preceding previous year, in any other case.   
 
12.   Notwithstanding anything contained in para 9, 10 and 11, at the end of any previous 
year,  securities  not  listed  on  a  recognised  stock  exchange;  or  listed  but  not  quoted  on  a 
recognised stock exchange with regularity from time to time, shall be valued at actual cost 
initially recognised. 
 
13.   For the purposes of para 9, 10 and 11 where the actual cost initially recognised cannot 
be  ascertained  by  reference  to  specific  identification,  the  cost  of  such  security  shall  be 
determined on the basis of firstinfirstout method. 


 
I.  Income Computation and Disclosure Standard IX relating to borrowing costs 
 
 
Preamble 
 
    This Income Computation and Disclosure Standard 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 account. 
           
    In the case of conflict between the provisions of the Incometax Act, 1961  `the Act'  and   
    this Income Computation and Disclosure Standard, the provisions of the Act shall prevail to 
    that extent. 
     
    Scope 
     
    1.        1   This  Income  Computation  and  Disclosure  Standard  deals  with  treatment  of 
                  borrowing costs.  
     
              2   This Income Computation and Disclosure Standard does not deal with the actual 
                  or imputed cost of owners' equity and preference share capital. 
     
    Definitions 
     
    2.        1   The  following  terms  are  used  in  this  Income  Computation  and  Disclosure 
          Standard with the meanings specified: 
     
                   a "Borrowing  costs"  are  interest  and  other  costs  incurred  by  a  person  in 
                      connection with the borrowing of funds and include: 
     
                       i    commitment charges on borrowings; 
 
                       ii   amortised amount of discounts or premiums relating to borrowings; 
                             
                       iii amortised  amount  of  ancillary  costs  incurred  in  connection  with  the 
                            arrangement of borrowings;  
                             
                      iv   finance  charges  in  respect  of  assets  acquired  under  finance  leases  or 
                           under other similar arrangements. 
     
               b   "Qualifying asset" means: 
     
                      i    land, building, machinery, plant or furniture, being tangible assets; 
 
                      ii   knowhow, patents, copyrights, trade marks, licences, franchises or any 
                           other business or commercial rights of similar nature, being intangible 
                           assets; 
                   
                      iii inventories  that  require  a  period  of  twelve  months  or  more  to  bring 
                           them to a saleable condition. 
 
         2   Words  and  expressions  used  and  not  defined  in  this  Income  Computation  and 
              Disclosure  Standard  but  defined  in  the  Act  shall  have  the  meaning  assigned  to 
              them in the Act. 
     
    Recognition 
     
    3.  Borrowing  costs  that  are  directly  attributable  to  the  acquisition,  construction  or 
        production of a qualifying asset shall be capitalised as part of the cost of that asset. The 
        amount of borrowing costs eligible for capitalisation shall be determined in accordance 
        with this Income Computation and Disclosure Standard. Other borrowing costs shall be 
        recognised in accordance with the provisions of the Act. 
     
    4.  For the purposes of this Income Computation and Disclosure Standard, "capitalisation" 
        in the context of inventory referred to in item  iii  of clause  b  of subparagraph  1  of 
        paragraph 2means addition of borrowing cost to the cost of inventory. 
     
    Borrowing Costs Eligible for Capitalisation 
 
5.  To  the  extent  the  funds  are  borrowed  specifically  for  the  purposes  of  acquisition, 
    construction or production of a qualifying asset, the amount of borrowing costs to be 
    capitalised on that asset shall be the actual borrowing costs incurred during the period 
    on the funds so borrowed. 
 
6.  To  the  extent  the  funds  are  borrowed  generally  and  utilised  for  the  purposes  of 
    acquisition, construction or production of a qualifying asset, the amount of borrowing 
    costs  to  be  capitalised  shall  be  computed  in  accordance  with  the  following  formula 
    namely :-- 
 
                     B   
         A  X     
                     C   
                              
       Where            A    borrowing  costs    incurred  during  the  previous  year  except  on 
                             borrowings directly relatable to specific purposes; 


                        B        i   the  average  of  costs of  qualifying  asset  as  appearing  in  the 
                             balance sheet of a person on the first day and the last day of the 
                             previous year;   
                                 ii   in  case  the  qualifying  asset  does  not  appear  in  the  balance 
                             sheet of a person on the first day or both on the first day and the 
                             last day of  previous year, half of the cost of  qualifying asset;  
                                 iii   in case the qualifying asset does not appear in the balance 
                             sheet of a person on the last day of  previous year,  the average of 
                             the costs of qualifying asset as appearing in the balance sheet of a 
                             person  on  the  first  day  of  the  previous  year  and  on  the  date  of 
                             put to use or completion, as the case may be ,  
                             other than those qualifying assets which are directly  funded out 
                             of specific borrowings; or
                      C          the  average of  the  amount  of  total  assets    as  appearing  in  the 
                                 balance sheet of  a person  on the first day and the last day of the 
                                 previous year, other than those assets which are directly funded 
                                 out of specific borrowings; 
 
Commencement of Capitalisation 
 
7.  The capitalisation of borrowing costs shall commence: 
 
     a       in  a  case  referred  to  in  paragraph  5,  from  the  date  on  which  funds  were 
             borrowed; 
          
     b       in a case referred to in paragraph 6, from the date on which funds were utilised. 
 
Cessation of Capitalisation 
 
8.  Capitalisation of borrowing costs shall cease: 
 
     a       in  case  of  a  qualifying asset  referred  to  in  item  i   and  ii   of  clause  b   of  sub
             paragraph  1  of  paragraph 2, when such asset is first put to use;  
          
     b       in case of inventory referred to in item  iii  of clause  b  of subparagraph  1  of 
             paragraph  2,  when  substantially  all  the  activities  necessary  to  prepare  such 
             inventory for its intended sale are complete. 
 
9.  When the construction of a qualifying asset is completed in parts and a completed part 
    is capable of being used while construction continues for the other parts, capitalisation 
    of borrowing costs in relation to a part shall cease:-- 
 
           a     in case of part of a qualifying asset referred to in item  i  and  ii  of clause  b  of 
                 subparagraph  1  of paragraph 2, when such part of a qualifying asset is first put 
                 to use;  
                  
           b     in case of part of inventory referred to in item  iii  of clause  b  of subparagraph 
                     1  of paragraph 2, when substantially all the activities necessary to prepare such 
                 part of inventory for its intended sale are complete.  
 
Transitional Provisions 
 
10.            All the borrowing costs incurred on or after 1st day of April, 2015 shall be capitalised 
               for  the  previous  year commencing  on  or  after  1st  day  of  April,  2015  in  accordance 
               with  the  provisions  of  this  standard  after  taking  into  account  the  amount  of 
               borrowing  costs  capitalised,  if  any,  for  the  same  borrowing  for  any  previous  year 
               ending on or before 31st day of March, 2015.  
 
Disclosure 
 
11.  The following disclosure shall be made in respect of borrowing costs, namely:-- 
 
           a     the accounting policy adopted for borrowing costs; and 
        
           b     the amount of borrowing costs capitalised during the previous year. 
                                          
J.  Income  Computation  and  Disclosure  Standard  X  relating  to  provisions, 
contingent liabilities and contingent assets 

 
 
 
 
    Preamble 
 
    This Income Computation and Disclosure Standard 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. 
 
    In the case of conflict between the provisions of the Incometax Act, 1961  `the Act'  and 
    this Income Computation and Disclosure Standard, the provisions of the Act shall prevail to 
    that extent. 
     



    Scope 
     
    1.     This  Income  Computation  and  Disclosure  Standard  deals  with  provisions, 
    contingent liabilities and contingent assets, except those: 
     
             a      resulting from financial instruments; 
             b      resulting from executory contracts; 
             c      arising in insurance business from contracts with policyholders; and 
             d      covered by another Income Computation and Disclosure Standard. 
     
    2.     This  Income  Computation  and  Disclosure  Standard  does  not  deal  with  the 
    recognition  of  revenue  which  is  dealt  with  by  Income  Computation  and  Disclosure 
    Standard  Revenue Recognition. 
      
    3.     The  term  `provision'  is  also  used  in  the  context  of  items  such  as  depreciation, 
    impairment of assets and doubtful debts which are adjustments to the carrying amounts of 
    assets and are not addressed in this Income Computation and Disclosure Standard.  
     
     
     
Definitions 
 
4 1   The following terms are used in this Income Computation and Disclosure Standard 
with the meanings specified:  
 
           a      "Provision" is a liability which can be measured only by using a substantial 
                 degree of estimation. 
 
           b      "Liability" is a present obligation of the person arising from past events, the 
                 settlement  of  which  is  expected  to  result  in  an  outflow  from  the  person  of 
                 resources embodying economic benefits.  
 
           c      "Obligating  event"  is  an  event  that  creates  an  obligation  that  results  in  a 
                 person having no realistic alternative to settling that obligation. 
        
           d      "Contingent liability" is: 
 
                  i      a possible obligation that arises from past events and the existence of 
                         which will be confirmed only by the occurrence or nonoccurrence of 
                         one or more uncertain future events not wholly within the control of 
                         the person; or  
 
                  ii     a present obligation that arises from past events but is not recognised 
                         because: 
 
                          A      it  is  not  reasonably  certain    that  an  outflow  of  resources 
                                 embodying  economic  benefits  will  be  required  to  settle  the 
                                 obligation; or 
 
                          B      a  reliable  estimate  of  the  amount  of  the  obligation  cannot  be 
                                 made. 
 
        e      "Contingent  asset"  is  a  possible  asset  that  arises  from  past  events  the 
              existence  of  which  will  be  confirmed  only  by  the  occurrence  or 
              nonoccurrence of one or more uncertain future events not wholly within the 
              control of the person. 
 
        f     "Executory contracts" are contracts under which neither party has performed 
              any  of  its  obligations  or  both  parties  have  partially  performed  their 
              obligations to an equal extent.  
 
        g      "Present  obligation"  is  an  obligation  if,  based  on  the  evidence  available,  its 
              existence at the end of the previous year is considered reasonably certain. 
 
4 2   Words  and  expressions  used  and  not  defined  in  this  Income  Computation  and 
Disclosure Standard but defined in the Act shall have the meaning respectively assigned to 
them in the Act. 
 
Recognition 
 
Provisions 
 
5.     A provision shall be recognised when: 
 
        a     a person has a present obligation as a result of a past event; 
 
        b     it  is  reasonably  certain  that  an  outflow  of  resources  embodying  economic 
              benefits will be required to settle the obligation; and 
 
        c     a reliable estimate can be made of the amount of the obligation.  
 
       If these conditions are not met, no provision shall be recognised. 
 
6.      No provision shall be recognised for costs that need to be incurred to operate in the 
future. 
 
7.      It  is  only  those  obligations  arising  from  past  events  existing  independently  of  a 
person's  future  actions,  that  is    the  future  conduct  of  its  business,  that  are  recognised  as 
provisions 
 
8.      Where  details  of  a  proposed  new  law  have  yet  to  be finalised,  an  obligation arises 
only when the legislation is enacted.  
 
Contingent Liabilities 
 
9.      A person shall not recognise a contingent liability. 
 
Contingent Assets 
 
10.     A person shall not recognise a contingent asset.   
 
11.     Contingent assets are assessed continually and when it becomes reasonably certain 
that inflow of economic benefit will arise, the asset and related income are recognised in 
the previous year in which the change occurs. 
 
Measurement 
 
Best Estimate 
 
12.     The amount recognised as a provision shall be the best estimate of the expenditure 
required to settle the present obligation at the end of the previous year.  The amount of a 
provision shall not be discounted to its present value. 
 
13.     The amount recognised as asset and related income shall be the best estimate of the 
value of economic benefit arising at the end of the previous year.  The amount and related 
income shall not be discounted to its present value. 
 
Reimbursements 
 
14.     Where some or all of the expenditure required to settle a provision is expected to be 
reimbursed by another party, the reimbursement shall be recognised when it is reasonably 
certain  that  reimbursement  will  be  received  if  the  person  settles  the  obligation.  The 
amount recognised for the reimbursement shall not exceed the amount of the provision. 
 
15.     Where a person is not liable for payment of costs in case the third party fails to pay, 
no provision shall be made for those costs.  
 
16.     An  obligation,  for  which  a  person  is  jointly  and  severally  liable,  is  a  contingent 
liability  to  the  extent  that  it  is  expected  that  the  obligation  will  be  settled  by  the  other 
parties. 
 
Review 
 
17.     Provisions shall be reviewed at the end of each previous year and adjusted to reflect 
the current best estimate. If it is no longer reasonably certain that an outflow of resources 
embodying economic benefits will be required to settle the obligation, the provision should 
be reversed. 
 
18.     An asset and related income recognised as provided in para 11 shall be reviewed at 
the end of each previous year and adjusted to reflect the current best estimate.  If it is no 
longer  reasonably  certain  that  an  inflow  of  economic  benefits  will  arise,  the  asset  and 
related income shall be reversed. 
 
 
 
Use of Provisions 
 
19.    A  provision  shall  be  used  only  for  expenditures  for  which  the  provision  was 
originally recognised. 
 
Transitional Provisions 
 
20.    All the provisions or assets and related income shall be recognised for the previous 
       year  commencing  on  or  after  1st  day  of  April,  2015  in  accordance  with  the 
       provisions of this standard after taking into account the amount recognised, if any, 
       for the same for any previous year ending on or before 31st day of March, 2015.  
 
Disclosure 
 
21 1   Following disclosure shall be made in respect of each class of provision, namely:  
        
               a a brief description of the nature of the obligation; 
 
               b   the carrying amount at the beginning and end of the previous year; 
            
               c  additional provisions made during the previous year, including increases to 
                 existing provisions; 
            
               d  amounts used, that is  incurred and charged against the provision, during the 
                 previous year; 
 
               e  unused amounts reversed during the previous year; and 
 
                 f   the amount of any expected reimbursement, stating the amount of any asset 
                   that has been recognised for that expected reimbursement. 
 
21 2   Following  disclosure  shall  be  made  in  respect  of  each  class  of  asset  and  related 
income recognised as provided in para 11, namely:-- 
 
           a       a brief description of the nature of the asset and related income; 
 
           b       the carrying amount of asset at the beginning and end of the previous year; 
        
           c       additional  amount  of  asset  and  related  income  recognised  during  the  year, 
                   including increases to assets and related income already recognised; and 
        
           d       amount of asset and related income reversed during the previous year. 
        
        
                                                 [Notification No.32/2015, F. No. 134/48/2010-TPL]




                                                                 (RAJESH KUMAR BHOOT)
                                                 DIRECTOR (TAX POLICY AND LEGISLATION)
        

 
 
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