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Investment account As-13

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Atharv Sankliya

1359 Points Posted on 11 January 2023

If taxes paid on investment are refundable then what will be the treatment for this ? as per AS-13

Replies (4)

Quick Summary

This discussion explores the accounting treatment for refundable taxes paid on investments under AS-13. While AS-13 doesn't directly cover capital gains tax, it addresses deferred tax. The consensus is that any refundable tax is not considered part of the investment's acquisition cost. Therefore, if taxes paid on an investment are refundable, they should not be debited to the investment account as part of its cost.

Yasaswi Gomes new

Finance

4592 Points Posted on 11 January 2023

This standard does not deal with taxes like capital gains and no treatment. It does however checks and treats deferred tax treatments.

Manish

1248 Points Posted on 11 January 2023

Please provide the full context.

Atharv Sankliya

1359 Points Posted on 11 January 2023

@ manish sir
if a firm/company make an investment in share of another company of 10,000 share @ rs.20 each and suppose the taxes paid of rs 1000 to purchase it is refundable then what will be the cost of acquisition to be debited in investment account