Uncertified revenue -Construction Industry

Save Share

This query is : Resolved

Quick Summary

This discussion addresses the accounting treatment of revenue in the construction industry when invoices are submitted for client certification. It explores whether uncertified revenue should be recognised and when tax invoices should be issued – upon submission or after certification. The consensus suggests raising invoices upon submission and using credit notes to adjust for any differences identified during certification.

Renjith.R.s.

Renjith.R.s. (Querist)

19 October 2021 If a company is engaged in construction activity. Every month he is raising invoice to client and submitted it for client certification. certified amount may vary subject to certification. In this case-

How will treat this revenue in books of accounts. Un certified revenue also consider for company's revenue?

Tax invoice at which stage to be raised? After certification or at the time of submission of bills to client.?

Please help to resolve this query

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

19 October 2021 1. Certified amount only.
2. At the time of submission.

Renjith.R.s.

Renjith.R.s. (Querist)

19 October 2021 Thanks.... If we are raising tax invoice before certification , difference in certification should adjust by debit/credit note. Correct?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

19 October 2021 Correct .... mostly by credit note..

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