Want to know more
Enter the details and we'll call you soon

Name :

Company Name :

City :

Mobile No. :

Email id :

  

Thank you for your details



Our Executive will reach you shortly.

Your Session Will Expire in   seconds.
If you do not wish to log-out, choose 'Let me continue'
Reset SessionCancel Session
 
Skip Navigation Links

Sum received post construction can't be included in determining percentage of completion method as per AS-7

June 9, 2020[2020] 116 taxmann.com 893 (Delhi - Trib.)
22 Views

INCOME TAX : Where the assessee company engaged in activities relating to water distribution, supply and related construction activity, was offered construction contract pertaining to rehabilitation and implementation of water supply for five years period and said contract consists of three parts, study phase, rehabilitation phase and operation and maintenance phase, since assessee had raised separate invoices for O and M phase on regular basis and same had been duly accounted in year of receipt and three different phases are totally different in execution and O and M phase commenced after construction activity of rehabilitation phase, amount pertaining to O and M phase needs to be separately considered while determining profits out of construction activity and it cannot be included in determining percentage of completion method in recognition of revenue as per AS 7

read more

taxmann.com
Payment
Best view in 1140 x 768