Cash system of accounting in professionals

This query is : Resolved

DHANDAPANI.S (Querist)
Follow

02 August 2013 A Doctor maintaining his accounts in cash basis. He purchased some medicines for his patients and he paid portion of the purchase bills only. Can he take full value of the purchase bills (including unpaid bills)to purchase or not.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

02 August 2013 yes he can take value actually paid in cash as it was for his profession purpose.

Message likes : 1 times

DHANDAPANI.S

DHANDAPANI.S (Querist)
Follow

02 August 2013 Thanks for your reply sir. I have another doubt. If an assessee as a professional not covered u/s.44AB Can convert his accounting methods from mercantile basis to cash basis.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

02 August 2013 only for professional providing service can change the method to cash u/s145.
Further there should be consistency in following method once selected.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now