Saturday, 25 March 2017

FAQ on ICDS


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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