cash and mercantile system
This query is : Resolved
21 March 2009
If we have to follow only mercantile system of accounting then why do we mention in notes to accounts and in 3CD report that the compamy follows 'mercantile system'
21 March 2009
Dear Amit,
First it is not necessary to follow Mercantile System.
Section 145 suggest two System of accounting in IT i.e Mercantile and Cash. therefore you have to mention.
First it is not necessary to follow Mercantile System.
Section 145 suggest two System of accounting in IT i.e Mercantile and Cash. therefore you have to mention.
CA Nitin Wadhwani
(Expert)
21 March 2009
Yes.
You can either follow mercantile or cash method for computing income from business or profeesion and income from other sources u/s 145.
Mercantile method is compulsory only if the entity is a company registered under Indian Companies Act, 1956 u/s 209.
You can either follow mercantile or cash method for computing income from business or profeesion and income from other sources u/s 145.
Mercantile method is compulsory only if the entity is a company registered under Indian Companies Act, 1956 u/s 209.
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