Revenue Recogination for Rate Differance Invoice

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amol (Querist)
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24 September 2010 Please Advice:
Fact of Case :Company has raised the rate differance invoice on 02.04.2010.Original sales are made in 2009-10.
Query : Whether any sales provision is required to be made on 31.03.2010?
How it will be treated under income tax?

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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24 September 2010 Ideally provision for rate difference should be created on 31/3/10 as the original sale is pertaining to FY 2009-10.

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amol

amol (Querist)
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24 September 2010 Which AS will be applicable in this case?

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CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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24 September 2010 Going by the financial year & accrual concept, the provision has to be made on 31.03.10.

Its also, because, you need get the confirmation from the party regarding the balance as on 31.03.2010 & if there is any difference (agreed by both party), the a provision should be created on 31.03.2010.

AS - 30