TMI Short Notes

TMI Short Notes on various issues

1201. The condition of reasonable certainty of ultimate collection is not laid down for taxation of interest, royalty and dividend. Whether the taxpayer is obliged to account for such income even when the collection thereof is uncertain.

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1202. How revenue from leases and hire purchase transactions will be recognised.

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1203. Since there is no specific scope exclusion for real estate developers and Build -Operate- Transfer (BOT) projects from ICDS IV on Revenue Recognition, whether ICDS-III and ICDS-IV should be applied by real estate developers and BOT operators.

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1204. Whether the costs incurred for securing the contract would have to be claimed in the year of incurrence or in the year in which contract is secured.

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1205. What is the treatment of incidental income that arises from construction contract.

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1206. Does proviso to section 36(1)(iii) apply on construction contract i.e. interest paid on capital borrowed for acquisition of an asset is not allowable as deduction if the same relates to a period beginning from the date of borrowing till the date on which such asset is first put to use.

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1207. whether the recognition of retention money, receipt of which is contingent on the satisfaction of certain performance criterion is to be recognised as revenue on billing.

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1208. What is the manner of recognizing contract revenue during the early stages of a contract.

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1209. What is the manner of recognition of revenue and expenses from construction contracts under ICDS III.

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1210. How to deal with a case where contract revenue is not recorded in the books of account, but offered to tax as per ICDS, and turns bad.

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1211. Whether the recognition of retention money, receipt of which is contingent on the satisfaction of certain performance criterion is to be recognized as revenue on billing.

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1212. Is it correct that even service providers are now required to record inventory?

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1213. Does ICDS II apply to the trader or dealer of livestock, agriculture and forest products mineral oils, ores and gases.

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1214. Does provisions of ICDS II apply to shares of a company in which public are not substantially interested.

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1215. Does the provisions of ICDS II apply on derivatives.

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1216. ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

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1217. As per ICDS-I the Marked to Market loss or an expected loss shall not he recognized unless the recognition is in accordance with the provisions of any other ICDS. Whether similar consideration applies to recognition of Marked to Market gain or expected incomes.

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1218. Since ICDS is not applicable for the purposes of maintenance of books of account, then what is the purpose and ambit of ICDS I on Accounting Policies as accounting policies are applied for maintenance of books of accounts and preparing financial statements.

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1219. Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

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1220. Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

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1221. In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

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1222. Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

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1223. Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

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1224. Does ICDS apply to the applicability aspect of the TDS.

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1225. How will ICDS apply to companies which adopted Ind-AS. (Indian accounting standards)

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1226. Whether ICDS is applicable to Non-Residents whose income is liable to be taxed at a flat rate of tax like interest, royalty and fees for technical services u/s 115A.

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1227. Whether the provisions of ICDS shall apply to Banks, Non-banking financial institutions, Insurance companies, Power sector, etc.

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1228. Can ICDS would apply to other categories of taxpayers whose income is taxed under presumptive tax schemes (i.e. u/s 44AD, 44ADA, 44AE, 4BB, 44BBA, 44BBB) as there is no specific exclusion provided.

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1229. Can a assessee opt to change his method of accounting from mercantile to cash basis.

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1230. Can a assessee can follow different methods of accounting for different sources of income under the same head of income, or different heads of income.

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1231. Can ICDS apply to a person following cash system of accounting and to the person whose books of account for the year are not required to be audited u/s 44AB.

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1232. Switching from normal payment of tax composition scheme - Whether the assessee is liable to reverse Input Tax Credit (ITC) on inputs or capital goods held in stock? How to calculate reversal of ITC in such case?

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1233. Switching from composition scheme to normal scheme of payment of tax - Whether the assessee is eligible to avail Input Tax Credit (ITC) on inputs or capital goods held in stock? How to determine the amount of ITC on capital goods to be availed?

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1234. Can a registered person, who purchases goods from a composition manufacturer / trader (dealer / supplier) take input tax credit under GST?
      1 Comment

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1235. In case of a person who is/was availing composition scheme u/s 10. What will be the due date of payment tax (GST) and submitting the return once he crosses the threshold limit of ₹ 75 Lakhs (or rs. 50 lakhs) as the case may be? Can he continue to pay tax and file the return on quarterly basis?
      1 Comment

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1236. What is the due date of payment of Tax under GST? What is the due date for payment of tax (GST) and filing of return in case of person opting for composition scheme u/s 10?

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1237. Whether a person who is opting for Composition u/s 10 of the GST, is required to pay GST at composite rate on Exempted Goods also?
      3 Comments

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1238. A person who was making inter-state supplies during the previous year but not making inter-state supplies during the current year, can he avail the benefit of composition under GST?
      1 Comment

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1239. How to determine Turnover limit for availing the benefit of composition scheme? Is it required to be determined each year on the basis of turnover of the previous year?

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1240. What is the validity of composition levy? Whether intimation is required to be submitted each year for availing the benefit of composition scheme under GST?

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1241. Can the option to pay tax under composition levy be exercised at any time of the year?

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1242. Can a person paying tax under composition levy, withdraw voluntarily from the scheme? If so, how?

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1243. Can an Importer of goods or services opt to pay tax under composition scheme under GST?
      2 Comments

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1244. Can an exporter of goods opt to pay tax under composition scheme under GST?

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1245. Can a person paying tax under composition scheme under GST make supplies of goods to SEZ?

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1246. Whether a person having turnover much below ₹ 75 Lakhs (Rs. 50 lakhs as the case may be) as on 30-6-2017, and having stock of goods purchased against C form, F form etc. or import goods or inter-state purchases, is eligible for availing the benefit of Composition Scheme under GST?

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1247. A person availing benefit of composition scheme under GST, want to be a casual dealer in another state. Can he avail the benefit of composition scheme in the capacity of casual dealer or non resident taxable person?

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1248. Who are not eligible to opt for composition scheme? Whether certain manufacturers (like Ice cream, Pan masala, Tobacco etc.) are excluded from opting composition scheme? if Yes, who are they?

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1249. A person availing composition scheme during a financial year crosses the turnover of ₹ 75 Lakhs (₹ 50 lakhs in hil areas) during the course of the year i.e. say he crosses the turnover of ₹ 75 Lakhs (₹ 50 lakhs in hil areas) in December? Will he be allowed to pay tax under composition scheme for the remainder of the year i.e. till 31st March?

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1250. Whether a person supplying goods through Electronic Commerce Operator, is eligible to opt composition scheme? Since the provisions of TDS u/s 51 and TCS u/s 52 have been deferred, would it make any difference?

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