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.
CMA Ramesh Krishnan
(Expert)
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
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Nursery business
- Tax on Amount transferred in HUF Account
- TDS on Dashcam rent and allied services
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Intimation under section 245
- ETDS return q4 25-26
- Section 269ST applicability for capital introduced by partner to his partnership firm
- HOW TO ADJUST CREDIT NOTE AMOUNT ?
- Import Order Cancelled.
- Working on Gold wastage during Melting of old gold jewellery
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
