As-11 effect on income tax

321 views 1 replies

In case of an exporter, as per AS-11 the debtors of the firm should be valued at closing rate, so this creates a gain or loss in the books of accounts & this is unrealized gain or loss. So my query is if due to this an unrealized gain has occurred what effect should be given? if we book this gain in P&L & show this as our income, it would be taxable under Income tax, then we have to pay tax on this unrealized gain? is it correct thing to do? or what else can we do ?

Please specify.

Replies (1)

In case of Woodward Governor India (P) LTD SC 2009, it was held that " Profits and gains are required to be computed in accordance with commercial principles and accounting standards (AS-11)"

In that case foreign exchange loss (Related to non cpaital asset) was allowed to be deducted u/s 37(1)

Simillarly such profits are also taxable 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details