AS 7 and Substance over form

829 views 3 replies

Hi,

Kindly help me in this regard,

 

One of our client I found that AS 7 is getting applicable to the projects undertaken by client. Contract for project contains construction of asset and erection and commissioning of the same at site. However client's stand is that since there are different POs raised by the customer for construction and Erection, we can't apply AS 7 as they are seaparate contracts. However, as per my understanding, having regard to principle of Substance over form, nature of contracts is to construct asset and make erection and commissioning of the same ar client place. Hence mere legal form (separate POs) will not change substance of the contract (constrction alongwith erection and commissioning).

In this case, construction is nothing but production of asset in the client's factory and erection at its customer's site after tranporting the package there.

 

Kindly revert on this topic.

 

Regards,

Abhijit Shetye

Replies (3)

Your concept is true and it does not require furthre clarification. well said abhijit regarding AS 7

In my opinion your  view is correct.

your concept is true

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

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
25 June 2026
AUDIT MANAGER

JDAS & ASSOCIATES

New Delhi

CA

View Details
Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details