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TMI BlogSummary of ICDS -IV- Revenue Recognition issued by CBDTX X X X Extracts X X X X X X X X Extracts X X X X ..... Summary of ICDS -IV- Revenue Recognition issued by CBDT - Commentaries / Editorials Dated:- 4-4-2015 - News - Income Computation Disclosure Standards (ICDS) Issued by CBDT under power under section 145(2) of Income Tax Act, 1961 vide notification no. 32/2015, dated 31-3-2015 Purpose: Computation of Income under PGBP head and Income from Other sources head Applicability: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... All assessee following mercantile accouting system W.e.f. 01/04/2015 i.e. Assessment year 2016-17 ICDS - IV - Revenue Recognition S. No. Scope of ICDS Particulars IV Revenue Recognition 1. Scope - Income from Ordinaries activities - From sale of goods services , From Interest, r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oyalities dividend. Not covered those incomes which are covered by other ICDS. 2. Revenue means gross inflow of cash, receivables or other consideration. In case of agency relationship, revenue means commission received. 3. In the case of sale of goods, revenue shall be recognised when goods have transferred to the buyer for a price or all significa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt risk rewards of ownership have been transferred. Also there should be reasonably certainty of the ultimate collection. 4. In the case of escalation of price and export incentives, income should be recognised only when there are reasonably certainty of the ultimate collection. 5. In the case of Services, revenue shall be recognised by the percent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... age completion method. The requirement of ICDS III- construction contracts shall mutatis mutandis apply to the the recognition of income from services. 6. Interest is calculated on time basis i.e. amount outstanding* time * rate. 7. Discount or premium on debt securities assuming accruing over the period of maturity, accordingly will be recognised. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. Royalties shall be accrue recognised with the terms of relevant agreement. Considering substance of transaction if it is necessary, revenue can be recognised on some other systemtic rational basis. 9. Dividend revenue will be recongnised as per provisions of Income Tax Act, 1961 . 10. Disclosures - Revenue not recognised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... due to lack of certainty of collection with nature of uncertainty , Revenue recognised from services , Method used to determine the stage of completion of services in progress with amount of cost incurred recognised profits, advance received and amount of retentions. - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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