Is there any adjustment required in opening stock as per ICDS Computation of inventory valuation under inclusive method?
Deepak Gupta
(CA Student)
(15922 Points)
Replied 10 August 2017
If an exclusive method is followed for the purpose of valuation of inventory as per AS, the tax payer would be required to prepare the memorandum account to demonstrate that vis-à-vis inclusive method, it is tax neutral. This will be in compliance with section 145A and ICDS.
No adjustment required in the books of accounts because ICDS does not apply for the purpose of maintenance of books of account.
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