A Prop firm raised supplementary invoices in the month of april may 2010, for increase in the prices of steels, the original sales were made in the financial year 2009-2010. My query is whether we can make provision for income related to supplementary invoices in the financial year 2009-10. what is the tax implications whether this income is taxable in the ass. year 2010-11 or in nxt assessement year. As per accounting standards issued by ICAI AS -4 it is an event occuring after the balance sheet date according to that we have to make adjustments in assets and liablilites in the balance sheet for the f.y. 2009-10.
Please resolve my query it ll highly obliged
1. can v make changes in assets & liabilities in the balance sheet as at 31.03.2010 if yes should we make provision for excise receivable as well as per AS-4
2. what are the tax implications whether this income will be taxable in ass. year 2010-11 as per mercantile system of accounting u/s 145
3. and if this can be treated as events ocurring after balance sheet date then would would happen if the same supplementary invoice would have been raised in june 2010 after the balance sheet is signed?
please quote relevant sections if possible
Thanks & Regards
vartin jain
CAclubindia
