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section 145 A

CA O.P. SINGH (O P Singh & Co.) (426 Points)

16 October 2007

hi friends

we are private ltd co. i just wanted to know if we are using exclussive method of accounting whether report under section 145 A under 3cd is still applicable to us ?

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CA.Saibaburao Nanduri (Chartered Accountant) (3847 Points)
Replied 16 October 2007

Dear omprakash ! Section 145 A states as follows: Notwithstanding anything to the contrary contained in section 145, the valuation of purchase and sale of goods and inventory for the purposes of determining the income chargeable under the head “Profits and gains of business or profession” shall be— (a) in accordance with the method of accounting regularly employed by the assessee; and (b) further adjusted to include the amount of any tax, duty, cess or fee (by whatever name called) actually paid or incurred by the assessee to bring the goods to the place of its location and condition as on the date of valuation. Explanation.— For the purposes of this section, any tax, duty, cess or fee (by whatever name called) under any law for the time being in force, shall include all such payment notwithstanding any right arising as a consequence to such payment.] Hence it is applicable in your case.