30 September 2013
My two queries are as under (1) Is it Mandatory to follow Accounting standards while finalising accounts and for filing income tax return for the Asstt.Year 2013-14.
(2)Is there any defined Accounting standards to be referred to in case of assessees who buy raw materials and get the required finished products manufactured on labour basis. The doubt has arisen because the assessee here cannot be treated as Manufacturer (Since he has no manufacturing unit of his own) he cannot be treated as trader (because he does not resell items on as is where is basis) Request reply from the expert elite members in this forum
30 September 2013
Applicability of Accounting standards does not depend on nature of business. It is applicable to all organisations while preparing books of accounts. For finalising ITR income tax provisions to be followed accounting standards are for preparing books of accounts and not for finalising the ITR.
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