Impact on income tax payment in e-auction of iron ore in ka
This query is : Resolved
17 December 2011
Dear All,
I working as Accounts Officer in Iron Ore Company in State of Karnataka. As many people know that Iron Ore Operation is banned by Supreme Court and Supreme Court has directed Monitering Committee to E-auction the Iron ore for Domestic Steel Industry. The Entrire Auctioned Iron Ore is governed by Monierting Committee and even in the Bid/ Sales Order Monertering Committee has mentioned as Seller and location of Iron Ore belongs to Mine Owner where iron ore stocked.
The Proceeds of the E-auctioned Ore will be taken by the Moneting Committe directly from the Bidder in advance. Actually we dont know when the Mine Owners receive the Bidding Proceeds from the Monitering Committee. As per the roumers we may receive the proceeds from the Monitereing Committee within this financial year or it may take more than a year.
My question is whether we have to consider the Income on the accrual basis or on received basis as this is governed by Supreme Court.
Please help me in this regard and suggest me if there is any case law.
Regards,
Srikanth.R
email id srikanthr1984 @ gmail.com
I working as Accounts Officer in Iron Ore Company in State of Karnataka. As many people know that Iron Ore Operation is banned by Supreme Court and Supreme Court has directed Monitering Committee to E-auction the Iron ore for Domestic Steel Industry. The Entrire Auctioned Iron Ore is governed by Monierting Committee and even in the Bid/ Sales Order Monertering Committee has mentioned as Seller and location of Iron Ore belongs to Mine Owner where iron ore stocked.
The Proceeds of the E-auctioned Ore will be taken by the Moneting Committe directly from the Bidder in advance. Actually we dont know when the Mine Owners receive the Bidding Proceeds from the Monitering Committee. As per the roumers we may receive the proceeds from the Monitereing Committee within this financial year or it may take more than a year.
My question is whether we have to consider the Income on the accrual basis or on received basis as this is governed by Supreme Court.
Please help me in this regard and suggest me if there is any case law.
Regards,
Srikanth.R
email id srikanthr1984 @ gmail.com
CA MANOJ GUPTA
(Expert)
19 December 2011
IT WILL DEPEND UPON UR ACCOUNTING SYSTEM IF U FOLLOW CASH BASIS THEN ON RECEIPT ONLY7 AND IN CASE OF MERCANTILE THEN ON ACCRUAL BASIS
CA MANOJ GUPTA'
JODHPUR
09828510543
CA MANOJ GUPTA'
JODHPUR
09828510543
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