01.
ICDS is not for purpose of maintainace of books
of accounts but for the purpose of taxable income.
02.
ICDS will over and above all earlier judicial
precedents.
03.
ICDS
applicable to all taxpayer who require to pay tax under Business Income and Income from other source.
04.
Income tax act will prevail over ICDS in case of
any conflict.
05.
ICDS not applicable in the case of MAT but
applicable in the case of AMT.
06. MTM loss now cannot be allowed as
expenditure.
07.
Retention money
recognition now cannot be deferred on receipt basis.
08.
ICDS also applicable to real estate companies as
applicable to other construction companies.
09.
Interest and Royalty now require to book under accrual basis.
10.
Expenditure on P&M before commencement of
production will be capitalised.
11. Taxation of government grant include
subsidy in any form. – if relate to
capital item then reduce the cost, otherwise P&L.
12. Revenue Recognition – Service - percentage completion method.
Forex
rules regarding valuation of foreign branch transactions
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