Revenue recognition based on Accounting Standard (AS) 7 for ...

Advance received accounted as per AS-7, unbilled revenue as assets, matching cost with revenue approved for consistency by Tribunal.

Case Laws Income Tax

October 1, 2024

Revenue recognition based on Accounting Standard (AS) 7 for advance received from customers under contracts - assessee followed Percentage Completion Method (PCM) substantiated with sample contracts and explanations filed with tax authorities. Unadjusted advances shown as current liabilities, unbilled revenue as current assets. Method consistently followed and approved by Tribunal in earlier years to match costs with revenues. Advance received for Annual Maintenance Contracts (AMC) accounted as per AS-9, proportionately transferred to revenue each month. Method approved by Tribunal for previous years. Disallowance of TDS recoverable written off covered by assessee's own case. Depreciation claim on intangible assets like know-how, business contracts allowed based on court decisions in assessee's and other cases. Goodwill held as depreciable asset following Supreme Court ruling.

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Revenue recognition based on Accounting Standard (AS) 7 for ...

Advance received accounted as per AS-7, unbilled revenue as assets, matching cost with revenue approved for consistency by Tribunal.

Case Laws Income Tax

October 1, 2024

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