MEIS,TMA,Duty Drawback

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This discussion addresses the accounting treatment for unreceived MEIS, TMA, and Duty Drawback benefits from FY 2019-20. It clarifies that if all conditions are met and the income can be recognised with reasonable certainty, these benefits can be recorded as receivables in the Profit & Loss account and Balance Sheet. An explanation should also be provided as a footnote in the financial statements.

Mohd Salim

Mohd Salim (Querist)

24 April 2020 we have done export FY - 19-20, MEIS,TMA, Duty Drawback is not recieved. Entered in ballance sheet or not.
which head showing in ballance sheet?

Sivakanth Badida

Sivakanth Badida (Expert)

24 April 2020 If all the conditions for MEIS are satisfied can recognize as income receivable in p and l including balance sheet. Also show the policy as note

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

04 June 2020 Agree with Sivakanth Badida.

If income can be recognized with reasonable accuracy and certainty it can be shown in the books of accounts and an explanation should be given as the footnotes in Financial Statements.

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