standard on construction contracts, government grants issued

Drafts of tax accounting standard on construction contracts,
government grants issued
Our Bureau
Share  ·  print  ·  T+  New Delhi, Oct. 17:

The Central Board of Direct Taxes (CBDT) has invited comments and
suggestions from stakeholders on the proposed tax accounting standards
(TAS) on construction contracts and government grants. The drafts of
the TAS on these two issues were released today.

A committee constituted by the CBDT in December last to study the
harmonisation of the accounting standards issued by the CA institute
with the direct tax laws in India has recommended the draft of these
two TAS. The drafts of the other TAS would be issued in due course,
the CBDT has said. The CBDT committee, comprising departmental
officers and professionals, had submitted its interim report in
August. This committee has also been tasked to suggest appropriate
amendments to the income tax law in view of transition to IFRS (IND
AS) regime. The interim report has recommended that accounting
standards notified under the income tax law should be made applicable
only to the computation of taxable income and a taxpayer should not be
required to maintain books of account on the basis of accounting
standards notified under the income tax law.

As two different sets of accounting standards may cause confusion for
taxpayers and other stakeholders, the committee has suggested that the
accounting standards notified under the Income Tax Act should be
termed as “tax accounting standards”. krsrivats@thehindu.co.in