Format Company Accounts during EDC Period

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Jay Chakraborty (Querist)

14 August 2010 What shall be the format of Company Accounts of a PSU during Construction Period? Whether Income Tax is required to be considered?

vrnanda

vrnanda (Expert)

18 August 2010 Hi Jay,

currently there is no concept of different format for the entities still under construciton period,

you have to compulsorily draw a balance sheet and profit and loss account and a cash flow statement (if required) and then transfer the profit and loss debit balance to the CWIP/unallocated capital expenditure as the case may be

CA Kishore Tallam

CA Kishore Tallam (Expert)

05 October 2010 There is no specific format for companies in EDC period. A profit and loss account has to be prepared and whatever the expenditure that is not directly or indirectly attributable to the project shall be charged off. The P&L debit balances shall be shown after Misc Exp in Balance sheet.
If there is any income generated out of other than loan funds, then only income tax is required to be paid. Else, it is not required to pay income tax also and the same can be netted off from Interest cost incurred during EDC.

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