Revenue recognition
This query is : Resolved
22 April 2013
One Company has to receive some consideration from the other company for several years say for 3 years, how ever that receiving company booked excess revenue in first 2 yrs than actual revenue due to wrong interpretation of contract agreement, now the company can adjust such excess against actul revenue in 3rd year.
Eg: actual Revenue for 3 years is 4lacs, 6lacs and 5lacs, how ever in 1st year company recognised 5.5 lacs and paid tax on that, in 2nd year 8lacs and paid tax on such income also, now company came to know that it recognised excees of 3.5 lacs so , it wants to recognise income of (5-3.5=1.5 lacs only in 3rd year. can it do so? assume that due date for filing return u/s 139(5) is expired already for first two years
Eg: actual Revenue for 3 years is 4lacs, 6lacs and 5lacs, how ever in 1st year company recognised 5.5 lacs and paid tax on that, in 2nd year 8lacs and paid tax on such income also, now company came to know that it recognised excees of 3.5 lacs so , it wants to recognise income of (5-3.5=1.5 lacs only in 3rd year. can it do so? assume that due date for filing return u/s 139(5) is expired already for first two years
30 June 2013
Yes it can be done. Now, what you have to do is send your statement of account to the company and the company will write to you that the actual payable or receivable by you is Rs.???? So you can reverse the revenue.
Message likes :
1 times
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
- Refund Annexure-B
- House Property Reporting in ITR
- TDS Claim year
- Liable to deduct tds and 44ADA
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Refund of 20%pre-deposit paid for stay application
- TDS Challan Code
- Rent lease agreement
- Entries in AIS regarding sale of units and shares
- SGST balance is there in credit ledger how to adjust for cgst
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
