Menu
Shifting from mercantile to cash basis of accounting
Is it possible to change your accounting to cash basis and revert to mercantile basis in later years?What are the situations where an assessee can change his basis of accounting?
Replies (1)
An assessee is free to adopt an accounting method -mercantile or cash – or even a method of accounting which is regularly employed by it . The basic thing is that the accounting system adopted should be fair and should be followed regularly. This is what section 145 of the I T Act provides
So If you consitently followed Mercantile System for income tax you have to follow that only
Recent Threads
- 17(5) Blocked ITC
- Transfer of equity shares to original owner
- Login credentials and payment acknowledgement not
- Export sales not realised payment not received fro
- Capital gain account amount utilisation
- Form 26QB – Section 194-IA: TDS on Full Cons
- Indexation Benefit available or not on Calculation
- Documents for return exhibition material
- Can I set off equity losses(both short term loss a
- Input tax credit on rent to rent
Related Threads
CAclubindia
