HELLO FRIENDS, CAN ANYBODY TELL ME WHATHER A CA HAS TO MAINTAIN HIS BOOKS OF ACCOUNTS ON CASH BASIS ONLY OR MERCHANTILE BASIS.
AND PLEASE TELL ME WHETHER TO PREPARE ONLY PROFIT AND LOSS A/C IN HIS CASE.
PLS. EXPLAIN CLEARLY.
RAJ KUMAR (FINANCE MANAGER) (1393 Points)
16 August 2010HELLO FRIENDS, CAN ANYBODY TELL ME WHATHER A CA HAS TO MAINTAIN HIS BOOKS OF ACCOUNTS ON CASH BASIS ONLY OR MERCHANTILE BASIS.
AND PLEASE TELL ME WHETHER TO PREPARE ONLY PROFIT AND LOSS A/C IN HIS CASE.
PLS. EXPLAIN CLEARLY.
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 16 August 2010
DEAR RAJKUMAR,
AS PER SECTION 145, IF IS AN OPTION TO THE ASSESSEE TO EITHER PREPARED THE ACCOUNTS ON MERCANTILE OR CASH BASIS.
HOWEVER, IF THE ASSESSEE IS A COMPANY, THEN AS PER THE COMPANIES ACT, IT HAS TO MAITAIN THE BOOKS OF ACCOUNTS ON MERCHANTILE BASIS. AND CASH BASIS IS NOT ALLOWED TO THEM UNDER THE COMPANIES ACT.
HOWEVER FOR AN INDIVIDUAL CA OR PARTNERSHIP FIRM, IT IS AN OPTION TO MAINTAIN ON ANY OF THE BASIS AS MENTIONED ABOVE. ONCE BASIS OF ACCOUNTING IS SELECTED, IT HAS TO BE FOLLOWED CONSISTENTLY. IF NOT, THE FINANCIAL EFFECT HAS TO BE QUANTIFIED AND TO BE SHOWN IN ITR...
REGARDS,
MANOJ
Kalpesh Chauhan,
(Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))
(8311 Points)
Replied 16 August 2010
| Originally posted by : Manoj B. Gavali | ||
 |
DEAR RAJKUMAR, AS PER SECTION 145, IF IS AN OPTION TO THE ASSESSEE TO EITHER PREPARED THE ACCOUNTS ON MERCANTILE OR CASH BASIS. HOWEVER, IF THE ASSESSEE IS A COMPANY, THEN AS PER THE COMPANIES ACT, IT HAS TO MAITAIN THE BOOKS OF ACCOUNTS ON MERCHANTILE BASIS. AND CASH BASIS IS NOT ALLOWED TO THEM UNDER THE COMPANIES ACT. HOWEVER FOR AN INDIVIDUAL CA OR PARTNERSHIP FIRM, IT IS AN OPTION TO MAINTAIN ON ANY OF THE BASIS AS MENTIONED ABOVE. ONCE BASIS OF ACCOUNTING IS SELECTED, IT HAS TO BE FOLLOWED CONSISTENTLY. IF NOT, THE FINANCIAL EFFECT HAS TO BE QUANTIFIED AND TO BE SHOWN IN ITR... REGARDS, MANOJ |
 |
Dheeraj
(Learner)
(1100 Points)
Replied 16 August 2010
AGREED WITH MR. MANOJ
& MERCANTILE SYSTEM IS RESPECTED BY ALL THE STAKEHOLDERS
AS IT IS SUGGESTED BY INCOME TAX DEPTT.ALSO
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
