Tax Titbits

Abstract

The Tax Accounting Standards vary from Accounting Standards issued by the Institute of Chartered Accountants of India, though most of them are mandatory under the company law with the Government committed to the process of convergence with International Accounting Standards. The effect of notified Tax Accounting Standards is in reverse gear treating capital receipts as income as in the case of subsidies on capital account or to prepone recognition of future income as in the matter of retention moneys. The provisions made in the accounts would have to satisfy the further test that they are not over-provided.