Method of accounting.
This query is : Resolved
12 January 2011
While recognising sales or purchases, sales should be recognised as gross. i.e. it includes excise,vat,other duties and cess as per section 145 of Income Tax Act.
Many companies follows net system of accounting rather than gross.Which system is valid as per accounting standards, principles.
As an auditor how we deal with it.
Many companies follows net system of accounting rather than gross.Which system is valid as per accounting standards, principles.
As an auditor how we deal with it.
14 January 2011
As per Accounting standard the net sales accounting systems is correct,
Sec,145 only for the Income tax calculation purpose we need to re calculate at the time of taxation
Sec,145 only for the Income tax calculation purpose we need to re calculate at the time of taxation
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