Revenue recognised on prorata basis allow on income tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2011 My client Having a ship manufacturing activity can they recognise the revenue or expenses as per AS-7 and same revenue and expense is allowed in income tax. What will happen or how my client recognised the revenue and expenses in the books of account when they cannot raised the bill on percentage completion of work due to certification of percentage completion is not received from buyer but they received the grant( in terms of money) time to time from the buyer.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

13 August 2011 Clause 29(a) of AS-7 may be followed which read as follows:-

The stage of completion of a contract may be determined in a variety of ways.

Depending on the nature of the contract, the methods may include:
(a) the proportion that contract costs incurred for work performed upto the reporting date bear to the estimated total contract costs;

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

THUSHAR MURALI KRISHNA

ACCFIN SOLUTIONS

Vishal Kapadiya

Sagar Khakhiwala

JAYDEEP MITRA

Subscribe Now

Revenue recognised on prorata basis allow on income tax

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANCY

Accountant

Manager- Finance and Compliance

Senior Executive

GST CONSULTANT

CA Final