21 September 2017
ONE OF MY CLIENT BOOKS MAINTAINING AS PER MERCANTILE SYSTEM AND CLOSING STOCK VALUED EXCLUSIVE DUTIES & TAXES (WHICH IS RECOVERABLE FROM TAX AUTHORITIES)
AS PER ICDS-2 VALUE OF CLOSING STOCK SHOULD BE INCLUSIVE OF DUTIES AND TAXES WHETHER RECOVERABLE OR NOT FROM TAX AUTHORITIES.
SUPPOSE MY CLOSING STOCK IN BALANCE SHEET IS 1,00,000/- (EXCLUDING DUTY & TAXES)
AND DUTIES AND TAXES RECOVERABLE ON THAT STOCK IS 12,500/-
AS PER MY QUERY IN TAX AUDIT REPORT FORM 3CD CLAUSE 13(D) AMOUNT TO BE INCREASE RS. 12500/- OR NOT
21 September 2017
Section 145 A adjustment read along with ICDS 2 has to be done in the tax computation statement only. If done, then it becomes a compliance of section 145(2) meaning thereby no need to show the amount in clause 13(d) of form 3CD.
CAclubindia
