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ACCOUNTING 59th year of continuous publication
AND AUDITING
BCAS
PART-1 Referencer

2021-22

BCAS Festivals
Referencer
2021-2022

Makar Sankranti
Onam
Lohri

Pola

उ वFestivals

India is the land of festivals and many of India’s festivals are celebrations of seasons such as the Lohri festival
of Punjab, Onam festival in Kerala, the Pongal festival of Tamil Nadu and the Bihu dance of Assam. These are
all harvest festivals but celebrated in different corners of India in unique ways at almost the same time.
Makar Sankranti is celebrated by flying kites in Gujarat & Rajasthan. In Maharashtra ‘Til-Gul laddoos’ are
distributed and in Assam the festivities last for a week.
Lohri is celebrated in Haryana & Punjab by lighting bonfires and throwing til, puffed rice & popcorns into the
flames with prayers seeking abundance & prosperity.
Onam of Kerala is celebrated for 10 days with floral decorations, feasts, dance performances, elephant parades
and snake boat races being part of the celebrations.
Pola is a festival where bulls and oxen are worshipped by farmers. This is celebrated across Maharashtra,
Chhattisgarh, Madhya Pradesh, Telangana and Karnataka.

Foreword

India: A soft-power shepherding ahead

Esteemed Readers,

Blessed are we to be born in a nation that, in its truest sense, is the foundation of humanity.

Blessed are we to be born in an era when the Indian civilization is marching towards positive
growth enabling greater good of humankind.

Blessed are we that we can see into the distance, sitting on the tall shoulders of our
forefathers.

Blessed are we to have an opportunity to appreciate our Indian history, culture and imbibing
sanskars.

India’s soft power is the common thread that binds all the disciplines that our civilisation has
gifted to the world. This soft-power of our nation emanates from our culture, rich legacy of
tradition, a strong value-system, orientation to knowledge, approach to happiness and pride
in our Indianness.

Our Accounting profession also owes a lot to our forefathers. Modern day accounting draws
its foundation through Arthashastra written by Chanakya during the period of the Mauryan
Empire. We couldn’t find a more befitting theme than ‘Namaste Bharat’ to extol the greatness
of our country for this years’ edition of our marquee publication, the BCAS Referencer 2021.

As we savour the splendour of our past, the future is unveiling an equally engaging
landscape. The new decade promises to amplify this soft-power, with India scheduled to
eliminate extreme poverty before the end of this decade, if not earlier. Life on the other side of
Covid-19 offers a perfect platform for our knowledge-oriented & technology-enabled economy
and society.

Your society, The Bombay Chartered Accountants’ Society, will continue to play its meaningful
role with full vigour - to provide an effective platform that thrives on sharpening the knowledge
edge of our community of Chartered Accountants. Our profession is undoubtedly a key pillar
of strength toward nation building. The BCAS Referencer, in its 59th edition, is a testimony
of our commitment to equip our community with the tools to function effectively. Besides the
hard copy version, we have taken efforts to adapt to the changing times by providing an easy-
to-use soft flip-book version too.

Another distinct style in India’s progress has been its approach of ‘Shepherding’ rather than
‘Leading’. Shepherding inherently involves taking everyone along and is a more self-motivated
way of reaching the desired objective. The BCAS Referencer is also a product of shepherding
by a large number of voluntary contributors filtered through the immaculate lens of untiring
Editors that result into a product worthy of being in your hands. We gratefully acknowledge
each one of them.

BCAS iii
Referencer
2021-2022

Let us thank, as always, our friendly Past President, CA Pranay Marfatia for his guidance
towards this Referencer in all aspects. We acknowledge the contribution of our editorial team
of CA Yatin Desai, CA Zubin Billimoria and CA Kinjal Bhuta. We also thank Team Finesse
Graphics and the BCAS Staff too.

Though we have taken full efforts to compile the matter in the Referencer from the latest
available details, we request readers to go through amendments, if any, post the release of
this Referencer when referring to the same.

We hope this edition of the BCAS Referencer augments into tangible value-addition towards
your professional pursuits, at the same time giving you yet another reason to take pride in
being an Indian.

Wishing you all happy referencing!!

Namaste Bharat!

CA. Narayan Pasari
Chairman
CA. Suhas Paranjpe
President Seminar, Public Relations &
Membership Development Committee


iv BCAS
Referencer
2021-2022

About the Theme

Namaste Bharat 2021

The rich heritage of India is one of the most well-preserved cultural treasures of the
world. It is not only one of the most ancient, but also one of the most extensive, profound,
unique, and varied. The harmonious blend of art, religion and philosophy in the Indian
culture is beautifully interwoven in the fabric of the Indian way of life and it is but natural
that India has had a deep influence on world progress and civilization.

Intellectual achievements, philosophy, treasures of knowledge, scientific inventions
and discoveries are all part of our rich inheritance. The contributions of Baudhayan,
Aryabhatta, Bhaskaracharya in the fields of Mathematics, Astronomy and Astrology; Kanad
and Varahmihir in Physics, Nagarjuna in Chemistry, Susruta and Charak in Medicine and
Patanjali in Yoga are the real treasures of India.

Our culture binds us together through knowledge from our literature and scriptures namely
the Vedas, Upanishads and the Gita. These educate us on right thought, action, behaviour
and practices, which are complementary to the development of civilization.

Our belief in the dictum ‘Vasudhaiva Kutumbakam’ has fostered our generosity and India
has thus provided the world free access to an infinite source of knowledge and wisdom
which is visible even today.

The whole world functions on computers but the foundation of all computers is the
binary code of ‘0 and 1’. It was India who gifted the world the concept of Zero and other
advanced mathematical concepts which were then transmitted to the Middle East, China,
and Europe and led to further developments that now form the foundations of many areas
of mathematics.

Similarly, Ayurveda too is a tremendous gift, considered by many scholars to be the oldest
healing science which originated in India more than 3,000 years ago. Ancient Ayurveda
texts also taught surgical techniques, including rhinoplasty, kidney stone extractions,
sutures, and the extraction of foreign objects. The practice of Yoga is believed to date
back to pre-Vedic times; possibly in the Indus Valley civilization around 3,000 BCE. Yoga
is also mentioned in the Rig Veda and the Upanishads and these scriptures including
the Puranas are themselves thousands of years old. India’s gift of Yoga continues to be
sought after by practitioners across the world.

India is also the inheritor of one of the most ancient and evolved music in the world.
India’s rich cultural legacy has given us some of the most amazing yet unique musical
instruments, ranging from the Veena to the Pakhawaj to the Bansuri which thrive even
today.

While India has many different cultures based on location and language, the common
thread joining the people together are the festivals. The similarity between the Lohri
festival of Punjab, the Pongal festival of Tamil Nadu and the Bihu dance of Assam is that
they are all harvest festivals but celebrated in different corners of India in unique ways at
almost the same time.

BCAS v
Referencer
2021-2022

Despite being home to over 19,500 languages and dialects, including Sanskrit and Tamil
which are considered to be some of the oldest living languages in the world, it is our culture
which keeps the people together.

This heritage to a large extent includes our glorious history of art and handicrafts. Be it the
architectural marvel of the Kailasa temple at Ellora - the world’s largest monolithic structure,
the Dhokra metal work, the ancient bamboo and cane craftwork, Bidriware, Pipili applique
work, Warli art, or the Kathputli form of puppetry, the list is endless. India’s treasure trove of
handcrafted art continues to enchant people across the globe.

The demand for and quality of Indian products extended beyond the borders and they were
exported to places as far as China, South East Asia, the Middle East, Greece and Rome.

From complex mathematical equations, medicine and surgery to everyday objects like
buttons, rulers, shampoo, games like chess and ludo and the birthplace of martial arts
through Kalaripayattu, Indian inventions and discoveries have been instrumental in shaping
the face of the modern world.

The glorious past of India has ensured that the present and subsequent generations have
plenty of historical, cultural and natural legacies to be proud of. The BCAS Reference Manual
2021 takes pride in presenting you the rich cultural legacy of our country we lovingly call
‘Bharat Mata’.

vi BCAS
Referencer
2021-2022

We Thank

Compilers to BCAS Referencer

CA. Anand Bathiya CA. Ayesha Aziz
CA. Bhadresh Doshi CA. Bhavesh Vora
CA. Chaitee Londhe CA. Chetan Shah
CA. Gaurav Save CA. Hardik Mehta
CA. Kapil Bohra CA. Mrinal Mehta
CA. Naman Shrimal CA. Namrata Shah
CA. Nina Kapasi CA. Preeti Oza
CA. Raj Khona CA. Ronak Rambhia
CA. Rutvik Sanghvi CA. Samit Saraf
CA. Sunil Gabhawala CA. Uday Sathaye
CA. Vijay Gajaria CA. Vishesh Sangoi

Editors

CA. Kinjal Bhuta • CA. Yatin Desai • CA. Zubin Billimoria

Mentors & Design of Theme
CA. Pranay Marfatia • CA. Narayan Pasari • CA. Rajesh Bhagat

Others

BCAS Staff • Finesse Graphics

BCAS vii
Referencer
2021-2022

BCAS Vision

BCAS shall be principle-centred and learning-oriented organisation to promote quality service and
excellence in the profession of Chartered Accountancy and shall be proactive to change.

BCAS shall harness talent of and disseminate knowledge to members, build skills and networks amongst
them and encourage them to adhere to highest ethical standards and professional integrity.

BCAS shall provide to students an environment conducive to the pursuit of knowledge and encourage them Seminar, Public
to achieve their potential to become complete Chartered Accountants. BCAS shall also conduct citizens’ Relations & Membership
Development Committee
education programmes.
Chairman
BCAS shall be a catalyst for bringing out better and more effective Government policies & laws and for Narayan Pasari
clean & efficient administration and governance.
Ex-Officio
Membership Fees (In `) Suhas Paranjpe
Abhay Mehta
Membership Fees for 2021-22
Convenors
Details ICAI Member prior ICAI Member after Kinjal Bhuta
01.04.2017 01.04.2017 Manmohan Sharma
Mrinal Mehta
BCAS Membership Preeti Cherian

Ordinary  Entrance Fee 1,180.00 590.00 Members
With Journal Membership Fees 2,950.00 2,950.00 Anand Bathiya
17,700.00 17,700.00 Bharatkumar Oza
Life Membership (without Journal) 18,900.00 18,900.00 Chintan Shah
1,200.00 1,200.00 Chirag Doshi
Life Membership (with Journal), 1,800.00 1,800.00 E. Chaitanya
Gaurav Luthra
Journal Subscription Gaurav Save
Govind Goyal
Journal Subscription with Courier Kamlesh Kothari
Kaustubh Deshpande
Details 1 Year 2 Year 3 Years Kushal Lodha
Student Membership [Membership, E-Journal, Student Study Circle] 500.00 800.00 1000.00 Meena Shah
Mehul Gada
 The above fees are inclusive of Goods and Service Tax. The rates are subject to change on the basis of Mihir Sheth
notification from time to time. Nina Kapasi
Pradip Thanawala
 6 months and 9 months, proportionate fees for Journal Subscription available. Pranay Marfatia
Rajeev Shah
Note: Rimple Dedhia
1. Outstation payments to be made by Demand Draft only, payable at Mumbai. Now you can pay online on Ronak Rambhia
Sahil Parikh
www.bcasonline.org Sangeeta Pandit
Sanjay Poddar
2. Cheques/Draft should be drawn in favour of “Bombay Chartered Accountants’ Society”. Sanjeev Lalan
Shreyas Trivedi
3. Please share your NEFT details promptly once payment is done. Uday Sathaye
Ujwal Thakrar
4. Please attach a photocopy of Membership Certificate of The Institute of Chartered Accountants of India. Uttamchand Jain
(Only while applying for New Members) Virag Shah
Yatin Desai
5. Office timing 10.30 a.m. to 1.30 p.m. and 2.00 p.m. to 5.30 p.m. Yogesh Patel

In case of new members and renewals of existing membership, the recipient of the supply can be the member BCAS
only. Therefore, only the GST registration number of the member (and not the firm) will be recognised. In case the Referencer
member is not registered under the GST Law, the same shall be treated as B2C Transaction. 2021-2022

Online Link for Quick Payment and Enrollment
For New Members :- https://www.bcasonline.org/NewMember.php
For Renewal :- https://www.bcasonline.org/Quickpay.php

© BOMBAY CHARTERED ACCOUNTANTS’ SOCIETY
No part of this publication may be reproduced or transmitted in any form or by any means without the permission
in writing from the Bombay Chartered Accountants’ Society.

The contents of this Referencer has been updated till 31st March, 2021.
Note: Every effort has been made to ensure accuracy in the information in the Referencer section at the time of
going to press. The publisher do not hold themselves responsible for any errors that may have arisen.

Published by President CA Suhas Paranjpe on behalf of Bombay Chartered Accountants’ Society,
7, Jolly Bhavan No. 2, Ground Floor, New Marine Lines, Mumbai-400 020.
Telephone : +91 22 6137 7600
Website : www.bcasonline.org; E-mail : [email protected]
E-Journal : www.bcajonline.org
E-Learning : https://bcasonline.courseplay.co/

Printed by Finesse Graphics & Prints Pvt. Ltd.

viii

Managing Committee 2020-21

Name 2020-21 Tel. Off. Mob. E-mail
Suhas Paranjpe
Abhay Mehta President 28747222 9869074643 [email protected]
Mihir Sheth
Samir Kapadia Vice-President 28930502 9820228182 [email protected]
Chirag Doshi
Manish Sampat Hon. Joint Secretary 22703023 9820286692 [email protected]
Raman Jokhakar
Anand Bathiya Hon. Joint Secretary 22050514 7715846190 [email protected]
Anil Doshi
Bhadresh Doshi Treasurer — 9820452332 [email protected]
Divya Jokhakar
Ganesh Rajgopalan Ex-Officio 66230600 9820010064 [email protected]
Hardik Mehta
Jagdish Punjabi Ex-Officio 22654882 9820877976 [email protected]
Kinjal Bhuta
Kinjal Shah Member 61338000 9820881767 [email protected]
Mandar Telang
Rutvik Sanghvi Member 28057295 9820064255 [email protected]
Shreyas Shah
Vaibhav Manek Member 25905080 9833605080 [email protected]
Zubin Billimoria
Member 22654882 9819046475 [email protected]

Member 25285902 9820201951 [email protected]

Member — 9819023863 [email protected]

Member 66416004 9820083679 [email protected]

Member 40033200 9920159601 [email protected]

Member 28948484 9892100844 [email protected]

Member 43484242 9819540450 [email protected]

Member 23511878 9820703722 [email protected]

Member 40021980 9819885321 [email protected]

Member 61644800 9867670620 [email protected]

Member 35654052 9821076159 [email protected]

BCAS ix
Referencer
2021-2022

Committee Chairmen 2020-21

Committee Name Chairman Co-Chairman
Accounting & Auditing Manish Sampat —
Corporate & Commercial Laws Committee —
Human Resource Development Chetan Shah
Indirect Taxation Govind Goyal K. K. Jhunjhunwala
Internal Audit Sunil Gabhawalla
International Taxation Uday Sathaye Nandita Parekh
Journal Mayur Nayak —
Seminar, Public Relations & Membership Raman Jokhakar —
Development Narayan Pasari —
Taxation
Technology Initiative Ameet Patel Deepak Shah
Nitin Shingala —

x BCAS
Referencer
2021-2022

Our Presidents

Name Year Tel. Off. Tel. Resi. Name Year Tel. Off. Tel. Resi.
Late Dinubhai L. Bhat 1949-1950 —— Late Ajay Thakkar
Late C. C. Chokshi 1950-1951 —— Late Dilip Dalal 1985-1986 — —
Late Ambalal S. Thakkar 1951-1952 —— Pinakin Desai
Late Narandas M. Shah 1952-1953 —— Harish Motiwalla 1986-1987 — —
Late Homi Banaji 1953-1954 —— Nayan Parikh
Late E. C. Pavri 1954-1955 —— Rajan Vora 1987-1988 61920751 26141082
Late Dinubhai Bhatt 1955-1956 —— Pranay Marfatia
Late M. P. Chitale 1956-1957 —— Late K. C. Narang 1988-1989 22005431 23521904
Late Ambalal Thakkar 1957-1958 —— Late Pradeep Shah
Late Narandas Shah 1958-1959 —— Govind Goyal 1989-1990 28825413 28827078
Late G. M. Kapadia 1959-1960 —— Kishor Karia
Late B. N. Pardiwalla 1960-1961 —— Ashok Dhere 1990-1991 61920440 23515287
Late Maganbhai L. Bhatt 1961-1962 —— Kanu Chokshi
Late R. B. Sheth 1962-1963 —— Late Rajesh Kapadia 1991-1992 22001040 23530564
Late Dolatrai Vora 1963-1964 —— Uday Sathaye
Late Arvind H. Dalal 1964-1965 —— Rajesh Shah 1992-1993 — —
Late Sham Argade 1965-1966 —— Pradip Kapasi
Ratanshaw Damanwala 1966-1967 Shariq Contractor 1993-1994 — —
Bansidhar S. Mehta 1967-1968 65795314 23881348 Rajesh Muni
Pradyumna Shah 1968-1969 22014922 23632155 Gautam Nayak 1994-1995 22038413 28786518
Late Baldevdas Parikh 1969-1970 66333558 65047812 Sanjeev Pandit
Late C. C. Dalal 1970-1971 Himanshu Kishnadwala 1995-1996 23511034 24999544
Haren Jokhakar 1971-1972 —— Rajesh Kothari
Late A. N. Lilani 1972-1973 —— Anil Sathe 1996-1997 26114940 26114940
Late Manubhai A. Parikh 1973-1974 22654882 23805204 Ameet Patel
N. V. Iyer 1974-1975 —— Mayur Nayak 1997-1998 23836900 23671460
Late V. H. Kishnadwala 1975-1976 —— Pradip Thanawala
Late Bhupendra Dalal 1976-1977 — 23009317 Deepak Shah 1998-1999 — —
Late Ishver Mehta 1977-1978 —— Naushad Panjwani
Late Narayan Varma 1978-1979 —— Nitin Shingala 1999-2000 43484242 24367670
Late Shantilal Shah 1979-1980 —— Raman Jokhakar
Late Navin Kishnadwala 1980-1981 –– –– Chetan Shah 2000-2001 22033160 24163043
Late Hemendra Shah 1981-1982 —— Narayan Pasari
Late Shailesh Kapadia 1982-1983 —— Sunil Gabhawalla 2001-2002 24022640 24015335
Dilip Thakkar 1983-1984 —— Manish Sampat
Dilip Lakhani 1984-1985 —— Suhas Paranjpe 2002-2003 66230600 65065650
22658800 23672334
BCAS 22666660 23525948 2003-2004 26512496 25972616
Referencer
2021-2022 2004-2005 66359681 26592314

2005-2006 24903752 23696792

2006-2007 64577600 26143893

2007-2008 28089956 28606522

2008-2009 43484242 24467753

2009-2010 24445063 26603838

2010-2011 26831199 28364636

2011-2012 22694248 23860993

2012-2013 67498500 24960111

2013-2014 26200464 —

2014-2015 61854620 23821692

2015-2016 22654882 23805204

2016-2017 22057309 —

2017-2018 9820038095 —

2018-2019 66515100 —

2019-2020 66230600 —

2020-2021 28747222 —

xi

Referencer Flip Book Contents

The following additional topics are also included in Ref Flip Book
over and above the contents of Referencer 2021-22

Ø Accounting Ratios Ø Legal Maxim

Ø Buy-back of Securities Ø Maharashtra Value Added Tax

Ø Deductions and Rebates Ø Permanent Account Number (PAN)

Ø Deemed Dividend Ø SEBI Takeover Regulations, 2011

Ø Direct Tax Vivad Se Vishwas Act, 2020 Ø SEBI (Alternative Investment Funds) Regulations,
Ø Double Taxation Avoidance Agreements 2012
Ø Due Diligence Review
Ø Fees – Recommended by ICAI Ø SEBI Listing Regulations

Ø Section 14A : Disallowance of Expenditure
incurred in relation to income exempt from tax

Ø Income Computation & Disclosure Standards Ø Service Tax

Ø Income tax - Search/Survey – Rights and Duties Ø Succession and Wills

Ø Independent Auditor’s Reports - some illustrative Ø Tax Audit Checklist
formats

Ø Interpretation of Taxing Statutes Ø Tax Deduction and Collection Account Number

(TDCAN)

Ø Investment Planner Ø Valuation

Ø Leave and Licences Ø Office 365- Excel.

xii BCAS
Referencer
2021-2022

About BCAS JOURNAL REFERENCER

BCAS Membership Offers You Monthly dose of A Tool For Every
analysis & Professional
1. Access to 250,000 + hours of updates
educational programmes
EVENTS E-LIBRARY
a) Member Discounts (Generally
20%) on most BCAS Events Learn from the Universe of
experienced Knowledge
b) Exclusive Member Events
COURSE PLAY CLINICS
c) Exclusive Residential Unable to Reach at RTI Clinic, Accounts &
Programmes Audit Clinic Charitable
the event venue,
2. E-Journal access for last 18 years (along watch here Trust Clinic
with Journal Subscription)

3. Platform to Network, Learn and Grow
with other Corporates, Professionals,
Peers, Students

4. Opportunity to Volunteer – write, speak,
serve taxpayers cause, get active with
RTI and other activities of the 10
Committees

5. Access to Library with more than 1,000
Books, Journals and Online >[email protected]; Mumbai: [email protected]

WIRC OF ICAI (MUMBAI)
ICAI Tower, Plot No. C-40, G Block, Opp. MCA Ground, Next to Standard Chartered Bank,............................................... Tel.022-33671400, 33671500
Bandra Kurla Complex, Bandra (East), Mumbai-400 051 ........................................................................E-mail : [email protected]; Website: www.wirc-icai.org

ICAI Bhawan, 27 Cuffe Parade, P. B. No. 6081, Colaba, Mumbai-400 005........................................................................................ 39893989, 39802900
.................................................................................................................................................................................Fax : 39802953-54 E-mail : [email protected]

WIRC Reference Library-cum-Reading Room
The Graduate Police Officers’ Residential Complex, Bullet Apartments, .............................................................................................................. 24131295
Lakhamsey Nappu Road, Hindu Colony, Dadar (E), Mumbai-400 014.

INSTITUTE OF COST ACCOUNTANTS OF INDIA
Rohit Chambers, 4th Floor, Janmabhoomi Marg,.................................................................................................22043416/22872010/22043406/22841138
Ghoga Street, Fort, Mumbai-400 001............................................................................................................................................. 22841138 Fax: 22870763
..............................................................................................................[email protected]icmai.in; Website: https://icmai.in/icmai/

INSTITUTE OF COMPANY SECRETARIES OF INDIA
13, 56 & 57, Jolly Maker Chamber No. 2 ............................................................................................................................................. 61307904/61307903
1st & 5th Floor, Nariman Point, Mumbai-400 021. ................................................................................................................................ 61307902/61307901
E-mail : [email protected]; Website: https://www.icsi.edu/home/............................................................................................................... 61307900/22047580

INCOME TAX
Ministry of Finance, Central Secretariat Building,.............................................................................................................................................011-23092810
Room No. 134, North Block, New Delhi-110 001
North Block, Parliament Street, New Delhi-110 001. .......................................................................................................................................011-23092510
Authority for Advance Ruling, New Delhi..........................................................................................................................................................011-26117935

MUMBAI INCOME TAX OFFICES
Aayakar Bhavan, M.K. Marg, Churchgate, Mumbai - 400 020............................................................................................................. 22039131, 22001230

Pratistha Building, Old C.G.O. Building Annexe, 101, M.K. Road, Mumbai-400 020........................................................... 22059232/22059344/22062759

Piramal Chambers, Lalbaug, Parel .................................................................................................................24132731/24114025 / 24102731 / 24102737

Matru Mandir Building, Nana Chowk Opp. Bhatia Hospital........................................................................................................................... 23841961 to 63

Earnest House, Nariman Point..........................................................................................................................22023216, 22059028, 22059232, 22059344

World Trade Centre, Cuffe Parade, Colaba............................................................................................................................................................ 22175300

Scindia House, Ballard Estate................................................................................................................................................................................. 22627000

Mahalaxmi Chamber, Training Institute................................................................................................................................................................... 23544412
Opp. Mahalaxmi Race Course

K. G. Mittal Building,............................................................................................................................................................................... 22819184/22819057
Charni Road............................................................................................................................................................................................ 22812323/22812564

Air India Building, Nariman Point, Mumbai.............................................................................................................................................................. 22020365

Kautilya Bhavan, Bandra Kurla Complex................................................................................................................................................................................

Vashi Commercial Complex 3rd/4th Floor, Vashi Railway Station Complex, Tower No. 6, Navi Mumbai............................................................. 27812218

Vardhan Bldg., MIDC Road No. 16 Wagle Estate, Passport Bldg., Thane.......................................................................................... 25801036, 25822107

Kureshi Mansion, Navpada, Thane......................................................................................................................................................................... 25422091

Vidco Road, Palghar................................................................................................................................................................(952525) 252083/Fax: 256618

INCOME TAX OMBUDSMAN

Mittal Tower, ‘B’ Wing, Room No. 115, Nariman Point, Mumbai ................................................................................................... 22829930/Fax: 22829936

INCOME TAX APPELLATE TRIBUNAL
Old C.G.O. Building, 4th Floor, M. K. Marg, Mumbai-400 020............................................................................ 22033848/22030586/22033788/22086946
......................................................................................................................................................................................................................... Fax: 22014369

INCOME TAX APPELLATE TRIBUNAL BAR ASSOCIATION
Old C.G.O. Building, 4th Fltoor, M. K. Road, Mumbai-400 020................................................................................................... 22055138/ Fax : 22036119
........................................................................................................................................................................................E-mail : [email protected]

xiv BCAS
Referencer
2021-2022

COMPANY LAW BOARD
NTC House, 2nd Floor, 15 N.M. Marg, Ballard Estate, Mumbai-400 038..................................................................................... 22611456 Fax: 22619636

DEPARTMENT OF COMPANY AFFAIRS
Regional Director Western Region ........................................................................................................................................................................ 22817259
Everest, 5th Floor,.....................................................................................................................................................................................................22811493
100, Marine Drive, Mumbai-400 002............................................................................................................................................................... Fax: 22812389

REGISTRAR OF COMPANIES WESTERN REGION MAHARASHTRA
Everest, 100, Marine Drive, Mumbai-400 020....................................................................................................................... 22812627/22020295/22846954

Belapur..................................................................................................................................................................................................................... 27576802

ANTI CORRUPTION BUREAU CBI
6th Floor, Sir Pochkhanwala Road, Worli Police Camp, Worli, Mumbai-400030 ..............................................................................24952050 / 24921212
...................................................................................................................................................................... E-mail : [email protected]

CHARITY COMMISSIONER
Dharmada Ayukta Bhavan, ....................................................................................................................................................................................................
21 Dr. Annie Besant Road, Worli, Mumbai-400 018.............................................................................................................................. 24930499/24935490
Commissioner.................................................................................................................................................................................. 24976421 Fax 24976420
...................................................................................................................................................................Website: https://charity.maharashtra.gov.in/en-us/

REGISTRAR OF FIRMS, MAHARASHTRA ............................................................................................................................................ Board 26551149
New Administration Bldg., 6th Floor, Near Chetana College, ...............................................................................................................Registrar: 26551944
Bandra (E), Govt. Colony, Mumbai-400 051
.................................................................................................................................................................................... Website: https://rof.mahaonline.gov.in/

REGISTRAR OF CO-OPERATIVE SOCIETIES
‘A’ Ward Malhotra House,
6th Floor, Opp. GPO, Mumbai-400 001.................................................................................................................................................................. 22691094
Bandra...................................................................................................................................................................................................................... 26590997
Konkan Bhavan........................................................................................................................................................................................................ 27574965

SERVICE TAX
Director General Service Tax
Piramal Chamber, 9th Floor, Parel, Mumbai-400 012................................................................................................................................... 24102584/86/89
The Commissionerate of Service Tax Div I & II................................................................................................................................. 22660258/59/22663285
The Commissionerate of Central Excise Mumbai I
Central Excise Bldg., 115, M.K. Road, Opp. Churchgate Station,
Mumbai-400 020.................................................................................................................................. 22004334/22001974/22007701/22055686/22004257

GOODS AND SERVICES TAX
GST Bhavan, Mazgaon,........................................................................................................................................................ 23712121/23770831/23760000
GST Bhavan, (Suburban), Bandra Kurla Complex, Mumbai-400 051................................................................................ 26592548/2648/1747/1757/1767
Thane ...................................................................................................................................................................................................................... 25380577
Konkan Bhavan..............................................................................................................................(F) 27571560/0570/0562/27571539/27574983/27571539
Kalyan Chandrama Bldg. ........................................................................................................................................... 2313966/2315877/2314938/25344702
Kalyan Sai Vihar Bldg........................................................................................................................................................................ 0251 2315877/2315966
Nallasopara .....................................................................................................................................................................................(0250) 2403002/2412066
Palghar................................................................................................................................................................................................. 02525 252193/256917

MINISTRY OF LAW & JUSTICE
Shastri Bhavan ‘A’ Wing, New Delhi
Law Minister......................................................................................................................................................................................011-23386615/23070045
Law Secretary ...................................................................................................................................................................................................011-23386499
Minister of State................................................................................................................................................................................011-23384777/23382902

THE GOODS AND SERVICES TAX PRACTITIONERS’ ASSOCIATION OF MAHARASHTRA
8 & 9 Mazgaon Tower, Ground Floor, 21, Mhatar Pakhadi Road, Mazgaon, Mumbai – 400 010........................................................ 23752267/23752268
G.S.T.P. Association, Library (Mazgaon) ................................................................................................................................................................ 23737153

(Bandra) ............................................................................................................................................................ 26591791
.........................................................................................................................................................E-mail : [email protected]; Website : www.gstpam.org

THE CHAMBER OF TAX CONSULTANTS
3, Rewa Chambers, Ground Floor, ...................................................................................................................................................... 22001787/22090423
31, New Marine Lines, Mumbai-400 020......................................................................................................................................................... Fax 22002455
....................................................................................................................................................E-mail : [email protected]; Website : www.ctconline.org

ALL INDIA FEDERATION OF TAX PRACTITIONERS
215, Rewa Chambers, 31 New Marine Lines, Mumbai-400 020 ........................................................................................................................... 22006342
............................................................................................................................ Fax 22006343; E-mail: [email protected]; Website: www.aiftponline.org

FORUM OF FREE ENTERPRISE
Peninsula House, 2nd Floor, 235 Dr. D. N. Road, Fort, Mumbai-400 001............................................................................................................. 22614253
................................................................................................................................................................................................................ E-mail: [email protected]

BCAS xv
Referencer
2021-2022

ITAT, Mumbai Benches

MUMBAI BENCHES : Pratishtha Bhavan, 3rd & 4th Floors, 101, M. K. Road, Mumbai - 400 020. Tel. No. 022-2203 3848
Fax: 022-2201 4369 • E-mail ID : [email protected]

Name & Designation of Officers Off. Tel./Fax Res.Tel. E-Mail ID

President 22014556 [email protected]
Shri Justice P. P. Bhatt, President 22014957
F: 22036817

Vice-President 26582499 [email protected]
Shri Pramod Kumar, Vice-President (Mum)

Judicial/Accountant Members

Shri Shamim Yahya, Accountant Member 22070298 23693844 [email protected]

Shri Saktijit Dey, Judicial Member 22033030 23680541 [email protected]

Shri C. N. Prasad, Judicial Member 22004137 23624606 [email protected]

Shri Rajesh Kumar, Accountant Member 22060069 23618901 [email protected]

Shri Amarjit Singh, Judicial Member 22033850 23680125 [email protected]

Shri M. K. Aggarwal, Accountant Member 22060152 23618032 [email protected]

Shri Ravish Sood, Judicial Member 22060244 23675765 [email protected]

Shri N. K. Pradhan, Accountant Member 22030350 23610064 [email protected]

Shri M. Balaganesh, Accountant Member 22892652 — [email protected]

Shri Vikas Awasthy, Judicial Member 26346341 — [email protected]

Shri S Rifaur Rahman, Accountant Member 27536885 — [email protected]

Shri Pavan Kumar Gadale, Judicial Member

Registrar

Shri Rajeshwar Prasad, Registrar 22086946 23622885 [email protected]
F: 22011068

xvi BCAS
Referencer
2021-2022

CIT Mumbai City

PRINCIPAL COMMISSIONERS/DIRECTORS OF INCOME-TAX

Sr. Name of the Officer Designation Office Address Contact Details
No.
Off. Tel. Fax No.

1 Sachchidanand Srivastava Pr. CIT-1 Room No. 330, Aayakar Bhavan 22075397 22120184
2 Anand Kumar
3 Sumeet Kumar Pr. CIT-2 Room No. 344, Aayakar Bhavan 22062606 22016498
4 Anil Kumar
5 Chaitali Panmei Pr. CIT-3 Room No. 612, Aayakar Bhavan 22001409 –
6 Chaitali Panmei (Addl.Charge)
7 Irina Garg Pr. CIT-4 Room No. 629, Aayakar Bhavan 22001292 22005078
8 Irina Garg
9 Vimalendu Verma Pr. CIT-5 Room No. 501, Aayakar Bhavan 22015670 22015670
10 Salagala Narasamma
11 M Jagdish Babu Pr. CIT-6 Room No. 515, Aayakar Bhavan 22017289 –
12 P. R. Ghosh
Pr. CIT-8 Room No. 611, Aayakar Bhavan 22005619 22086068

Pr. CIT-17 (A/C) 241, Kautilya Bhavan, Bandra Kurla Complex 26531016 –

Pr.CIT-19 Room No. 228, 2nd Floor, Matru Mandir, Tardeo Road 23855951 –

Pr.CIT-20 Room No. 418, 4th Floor, Piramal Chambers, Lalbaug 24117682 –

Pr.CIT-27 Room No. 401, Tower No.6, Vashi Station Complex 27812945 –

CIT (TDS) - 1 Room No. 900B, 9th Floor, Smt. K.G.Mittal Ayurvedic 22811955 22816906
Prachar Sansthabldg

13 Purushottam Kashyap CIT(TDS)-2 Room No. 800B, 08th Floor, Smt. K. D.G.Mittal Ayurvedic 22846564 –
Prachar Sansthabldg

14 Ashok Kumar Jha CIT-(Audit)-1 Room No. 315, Aayakar Bhavan 22016251 22084629
15 Abhijit Patankaaar 22017317 22017317
16 Brajesh Kumar Singh CIT(Audit)-2 Room No. 308, Aayakar Bhavan 22615800
17 Brajesh Kumar Singh 22616565 –
18 Dr. L. Ramji Rao Pr. DIT (Inv)-1 Room No. 209, Scindia House, Ballard Estate 22825451 –
19 Dr. L. Ramji Rao (Addl.Charge) 22020422 22828457
20 V. Vivekanandan (Addl.Charge) Pr. DIT(Inv)-2 Room No. 214, Scindia House, Ballard Estate 22825586 –
21 V. Vivekanandan 22825586 22825586
22 Abhay Damle CIT (TP)-1 Room No. 401, Air India Building 22016205 22820020
23 Ashok Kumar Tripathi 22040515 22077385
CIT(TP)-2 Room No. 512, Air India Building 22045181

CIT(TP)-3 Room No. 412, Air India Building

Pr. CIT (TP)-4 Room No. 501, 5th Floor Air India Building

PCIT(C)-1 Room No. 1001, Pratistha Bhavan, Old CGO BLDG

Pr.CIT(C )-2 Room No. 1920, Air India Building
A/C

24 Ashok Kumar Tripathi Pr.CIT(C )-3 Room No. 1901, Air India Building 22043610 22040418
25 ABHAY DAMLE 22002073 22018556
26 Sushil Kumar Poddar Pr.CIT(C)-4 A/C Room No. 663, Aayakar Bhavan 22876208 22876189
27 Somogyan Pal 22027657 22027604
28 Somogyan Pal (A/C) DIT (I & CI) Room No. 1201, Earnest House, NCPA Marg 22027605 22027605
29 Amrita Ranjan 22027656
30 Ajay Kumar Sharma CIT(IT)-I Room No. 1704, Air India Building 22027657 –
31 ASHOK KUMAR JHA 22095473 22027604
CIT(IT)-2 Room No. 1706, Air India Building 22001290

CIT(IT)-3 Room No. 1601, Air India Building

CIT(IT)-4 Room No. 1704, Air India Building

CIT (Judicial) Room No. 314, Aayakar Bhavan
Addl.Charge

32 Mahesh Kumar CIT (APA) Room No. 915, K.D.G.Mittal Hospital Building 22810171 22810170
33 Siripurapu Padmaja 22049395 22049395
34 Anurag Sahay CIT (DR) (AAR) 5th floor Hoechst House 24167883 24116047
35 Shahi Sanjay Kumar 23533248 23540727
CIT (Exem.) Room No. 617, Piramal Chambers

Additional Room No. 320, Mahalaxmi Chambers
Director
General
(DTRTI)

36 Amitabh Shukla ADG(Vig.) Room No. 407, Aayakar Bhavan 22015839 22078831

BCAS xvii
Referencer
2021-2022

CCIT Mumbai City

Sr. Contact
No.
Name Designation Office Address

Off. Tel. Fax No.

1 Patanjali Principal CCIT Room No. 321, Aayakar Bhavan 22017654 22062597
2 Patanjali (Addl. Charge)
3 Patanjali (Addl. Charge) CCIT-1 Room No. 321, Aayakar Bhavan 22014332 22031307
4 K. Kamakshi
5 K. Kamakshi CCIT-2 Room No. 321, Aayakar Bhavan 22017654 22062597
6 Lekha Kumar
7 Sanjay Puri CCIT-3 Room No. 351, Aayakar Bhavan 22080585 22037587

CCIT-4 Room No. 306, Aayakar Bhavan 22017728 22015204

CCIT-5 Room No. 339, Aayakar Bhavan 22051453 —

CCIT-TDS Room No. 1000, A Smt. K.G.D Mittal 22811769 22092106
Ayurvedic Prachar Sanstha

8 Pragya Sahay Saksena CCIT (IT&TP) WZ Room no 1703 Air India Building 22048091 22023610
9 Omkareshwar Chidara (Addl. Charge)
10 Omkareshwar Chidara CCIT (CENTRAL)-I Room No. 424, Aayakar Bhavan 22011578 22075474
11 M V Bhanumati
CCIT (CENTRAL)-II Room No. 108, Aayakar Bhavan 22034601 22050614

DGIT (INV) Room No. 206, Scindia House, Ballard 22615700 22621417
Estate

xviii BCAS
Referencer
2021-2022

Contents

PART I (3) Types of Issue of Securities 2.14
ACCOUNTING AND AUDITING – an overview
Accounting Standards
Applicability of Accounting Standards to 1.1 (4) Application of premium 2.15
Various Entities 1.1 received on issue of
SHARES [S. 52]
Components of Financial Statements 1.7
1.46 (5) Prohibition on Issue of 2.15
Revised Conceptual Framework For IND- shares at Discount [S. 53]
AS 1.54
1.58 (6) Dematerialisation of 2.15
Standards on Auditing 1.120 securities [R. 9, 9A]
Gist of Standards of Auditing (SA) 1.120
1.120 (7) Private Placement vis-à-vis 2.16
Reporting on Internal Financial Controls Preferential Offer
1.135
Fraud Reporting 1.141 (8) Private Placement [S. 42, 2.16
1.143 R. 14]
Some illustrative formats of Independent 1.145
Auditor’s Reports (9) Issue of Sweat Equity 2.19
Shares [S. 54]
Companies (Auditor’s Report) Order, 2020
(10) Issue and Redemption of 2.20
Accounting Ratios Preference Shares [S. 55]

Due Diligence Review (11) Reduction of share capital 2.21
[S. 66]
Tax Audit Checklist

PART II (12) Restrictions on purchase by 2.23
COMPANY LAW the Co or giving of loans by
it for purchase of its shares
Abbreviations 2.1 [S. 67]

I. Types of companies [Ch. I] 2.3 (13) Power to purchase its own 2.23
shares (i.e. buy-back of
II. Incorporation of company [Ch. II] 2.4 securities) [S. 68, R. 17]

(1) Requirements 2.4 (14) Debentures [S. 71] 2.26

(2) Procedure for Incorporation 2.5 IV. Acceptance of Deposits [Ch. V] 2.27
of a NewCo V.
VI.
III. Share capital, Debentures and 2.13 Registration of charges [Ch. VI] 2.31
Issue of securities [Ch. III, IV]
Management and Administration 2.32
(1) Kinds of share capital [S. 2.13 [Ch. VII]
43] and their voting rights
[S. 47(1)] (1) Significant Beneficial 2.32
Owners [Ss. 89, 90, Co
(2) Publication of Authorised, 2.14 (SBO) Rules]
Subscribed and Paid-up
Capital [S. 60] (2) General Meetings [Ss. 96, 2.35
100, 103]

BCAS xix
Referencer
2021-2022

(3) e-voting [S. 108, R. 20] 2.36 (C) ID Data bank [S. 150, 2.66
R.6 of Co (DIR) Rules, Co
(4) Postal Ballot [S. 110, R. 22] 2.38 (ID Data bank) Rules 2019]

(5) Ordinary & Special 2.40 XII. Powers of the Board [Ch. XII] 2.69
Resolution [S. 114]

(6) Resolutions requiring 2.40 (1) Powers of the Board [Ss. 2.69
special notice [S. 115] 179, 180]

(7) Minutes [S. 118] 2.40 (2) Disclosure of Interest by 2.71
Director [S. 184]

VII. Declaration and Payment of 2.40 (3) Loan to Directors, etc. [S. 2.72
VIII. Dividend [Ch. IX] 185]
IX.
Corporate Social Responsibility 2.42 (4) Loan and Investment by Co 2.72
X. [S. 135] [S. 186]
XI.
Accounts of companies [Ch. IX] 2.48 (5) Related Party Transactions 2.75
xx [S. 188]
(1) Accounts of companies 2.48
[S.128] XIII. Appointment of and 2.77
Remuneration to Managerial
(2) Financial Statements [Ss. 2.50 Personnel [Ch. XIII]
129, 132, 133]

(3) Reopening of FS & 2.51 (1) Appointment of managerial 2.77
Voluntary revision of FS / personnel: Applicable to all
BoD’s report [Ss. 130, 131] Cos including Private Cos

(4) National Financial 2.53 (2) Remuneration to 2.78

Reporting Authority [S. 132] managerial personnel

Audit and Auditors [Ch. X] 2.54 (A) Private companies 2.78

Appointment and qualification of 2.60 (B) Public companies having 2.78
directors [Ch. XI] ADEQUATE profits [S. 197
read with Sch V, Part II,
(1) DIN [S. 153, R. 9, 10, 11, 2.60 Section]
12, 12A]

(2) Director’s KYC [R. 12A] 2.62 (C) Public companies having 2.79
NO/INADEQUATE profits
(3) No. of Directorships [S. 2.62 [S. 197 read with Sch V,
165] Part II, Section II]

(4) Vacation of office of 2.62 XIV. Miscellaneous 2.83
Director [S. 167]
(1) Registered valuer [Ch. XVII] 2.83

(5) Corporate Governance 2.63 (2) Removal of names of 2.85
under Co Act 2013 Companies from the
Register of Companies i.e.
(A) Composition of the Board 2.63 Strike off [Ch. XVIII]
of Directors [Ss. 149, 151]

(B) Board Committees [Ss. 2.65 (3) Winding up [Ch. XX] 2.87
177, 178]

BCAS
Referencer
2021-2022

(4) Conversion of entities into 2.88 (3) Conditions to be complied 2.134
Co [Ch. XXI, Part I] with upon resignation of the
statutory auditor of a listed
(5) Dormant Co [S. 455] 2.89 entity / material subsidiary
w.r.t. limited review / audit
(6) MSME disclosures 2.91 report [SEBI CIRCULAR
CIR/CFD/CMD1/114/2019
(7) MCA Version 3.0 2.91 dated 18-Oct-2019]

XV. Tables 2.91 (4) Illustrative Compliance 2.136
calendar under LODR for
(1) Criteria under the 2.91 Entities which has listed its
specified securities
Companies Act, 2013
Reference of Chapters under the Companies Act, 2013 are given in
triggering certain [bracket Brown ink]

compliances – At a Glance

(2) Contents of BoD report [S. 2.95
134(3), (3A), (5) & R.8, 8A]

(3) e Forms to be filed with 2.98 PART III
RoC under Co Act 2013 DIRECT TAXES

(4) Fees to be paid to 2.104 Rates of Income Tax 3.1
Registrar of Companies
Return of Income 3.9

(5) Illustrative list of 2.109 Interest 3.16
punishment for non-
compliance/default under Penalties 3.21
Co Act 2013
Audit Reports under the Income-tax Act 3.29

(6) Illustrative list of Statutory 2.121 Accountant’s Reports under the Income- 3.30
Registers and other records tax Act
to be prepared or maintained
under Co Act 2013 Rectifications 3.31

(7) Illustrative list of matters 2.122 Appeals 3.32
requiring Special Resolution
as per Co Act 2013 Revision 3.40

XVI. Exemptions to a private company 2.125 TDS Chart 3.42
under the Companies Act 2013 -
At a glance Important Due Dates under Direct Taxes 3.64

Clubbing Provisions 3.67

XVII. Some of the key SEBI 2.129 Exempt Income 3.69
compliances for listed entities

(1) Corporate Governance 2.129 Section 14A : Disallowance of 3.92
under LODR [Ch. III of Expenditure incurred in relation to
LODR] income exempt from tax

(2) Publishing Quarterly/Half 2.131 Charitable Trusts 3.94
Yearly/Annual Results by
Listed Companies under Income from House Property 3.104
LODR
Salaries 3.106

BCAS xxi
Referencer
2021-2022

Rates of Depreciation 3.113 PART IV
INDIRECT TAXES
Taxation of Firms 3.117

Capital Gains 3.119 Goods and Services Tax (GST) 4.1

Capital Gains on Specific Transfers 3.123 1. Supply With Schedules 4.1

Exempt Capital Gains 3.133 2. Classification of Goods and 4.7
Services

Full value of consideration in respect of 3.143 3. Reverse Charge Mechanism Under 4.15
transfer of Immovable Property held as Goods and Services Tax (GST)
business asset – Section 43CA

Gifts Treated as Income 3.144 4. Time of Supply 4.27

Presumptive Taxation 3.152 5. Valuation of Supplies in GST 4.29

Set-off and carry forward of losses 3.154 6. Place of Supply 4.34

Amalgamation and Demergers 3.157 7. Input Tax Credit (ITC) 4.47

Minimum Alternate Tax (MAT) 3.161 8. Transitional Provisions 4.54

Alternate Minimum Tax (AMT) 3.165 9. Registration Under GST 4.58

Statement of Financial Transactions or 3.167 10. Returns 4.65
Reportable Account Annual Information
Return 11. Accounts and Records 4.74

Co-operative Society – Taxation 3.173 12. E-Way Bill 4.78

Direct Tax Vivad Se Vishwas Act, 2020 3.178 13. Refund 4.82

Dispute Resolution Scheme 3.182 14. Interest 4.84

Faceless Schemes 3.183 15. Assessments and Audits 4.85

Deductions and Rebates 3.185 16. Penalties & Prosecution 4.86

Deemed Dividend 3.220 Customs 4.56

Income Computation & Disclosure 3.223 1. Background 4.91
Standard
2. Some Important Definitions 4.91

Interpretation of Taxing Statutes 3.240 3. Levy of Customs Duty 4.91

Investment Planner 3.270 4. Types of Duties 4.92

Legal Maxims 3.283 5. Classification of Goods under The 4.94
Customs Tariff Act, 1975
Permanent Account Number (PAN) 3.284

Search/Survey – Rights and Duties 3.295 6. Date For Determining Rate of Duty 4.95
and Valuation
Tax Deduction and Collection Account 3.300
Number (TDCAN) 7. Valuation of Goods 4.96

8. Procedure of Import 4.102

xxii BCAS
Referencer
2021-2022

9. Warehousing 4.104 Partnership Firms – Procedures 5.88
(Maharashtra)
10. Audit 4.105

11. Advance Rulings 4.105 Period of Preservation of Accounts/ 5.92
Records under Different Laws

12. Demand, Recovery and Refund of 4.106 The Banning of Unregulated Deposit 5.95
Duty Schemes Act, 2019

13. Interest 4.108 Real Estate (Regulation & Development) 5.98
Act, 2016
14. Penalties 4.108

15. Prosecution 4.110 Right to Information Act, 2005 5.105

16. Settlement of Cases 4.111 Prevention of Money Laundering Act, 5.110
2002
17. Customs Duty Drawbacks 4.112
Benami Transactions (Prohibition) 5.112
Maharashtra Profession Tax 4.114 Amendment Act, 2016

Maharashtra Value Added Tax 4.123 SEBI Listing Regulation 5.114

Service Tax 4.136 SEBI (Substantial Acquisition of Shares 5.138
and Takeovers) Regulations, 2011

PART V SEBI (Alternative Investment Funds) 5.143
ALLIED LAWS Regulations, 2012

Chartered Accountants Act and 5.1 Succession and Wills 5.151
Regulations
Valuation 5.159
Checklist for Mergers and Demergers 5.29
Leave and Licences 5.170
Insolvency and Bankruptcy Code, 2016 5.33
(IBC) Fees - Recommended by ICAI 5.172

Limited Liability Partnership 5.39

Maharashtra Stamp Act, 1958 5.60 PART VI
FEMA AND INTERNATIONAL TAXATION
Maharashtra Public Trusts Act, 1950 as 5.70
amended by Maharashtra Public Trusts Foreign Exchange Management Act, 1999
(Second Amendment) Act, 2017
1. Introduction 6.1

Charity Commissioner (C.C.) 5.70 2. Residential Status under FEMA 6.1

The Maharashtra E-Payment of Stamp 5.75 3. Capital & Current Account 6.2
Duty and Refund Rules, 2013 Transactions

The Maharashtra e-Registration and 5.78 4. Bank Accounts in India 6.5
e-Filing Rules, 2013
5. Investment in India 6.8
The Micro, Small and Medium 5.80
Enterprises Development Act, 2006 6. Acquisition and transfer of 6.14
Immovable property in India
NBFC Directions, 1998 5.82

BCAS xxiii
Referencer
2021-2022

7. Branch / Liaison / Project Office in 6.15 9. Restriction on Administrative 6.48
INDIA Expenses

8. Trade Transactions – Import & 6.17 10. Speculative Activity 6.49
Export
11. Transfer of FC to other Registered 6.49
9. Borrowings from Non-residents 6.21 or Unregistered Persons

10. Overseas Direct Investments 6.32 12. Restriction in the utilisation of 6.49
Foreign Contribution
11. Cross Border Merger Regulations 6.39

12. Acquisition and Transfer of 6.42 13. Inspection & Seizure 6.49
Immovable Property outside India
14. Penalty 6.49

13. Branch / Liaison / Project Office 6.42 15. Declaration of receipts of foreign 6.50
outside India contribution

14. Compounding & Contravention 6.42 16. Change of designated bank 6.50
under FEMA account, name, address, aim,
objects or key members of the
15. Miscellaneous 6.44 association

Foreign Contribution (Regulation) Act, 2010 17. All FCRA services online 6.50

1. Introduction 6.46 18. Registration to be suspended 6.51

2. Applicability 6.46 19. Surrender of Registration Certificate 6.51

3. Foreign Contribution 6.46 International Taxation

4. Restrictions on Accepting FC 6.46 Taxation of Non-Residents 6.52

5. Restrictions on acceptance of 6.47 Transfer Pricing 6.69
foreign hospitality

6. Registration of the Association 6.47 Equalisation Levy 6.84

7 Accounts & Audit 6.47 Form 15CA/15CB 6.87

8. Total Ban on acceptance of Foreign 6.48 Multilateral Instrument – An introduction 6.90
Contribution & Hospitality
Double Taxation Avoidance Agreements 6.94

xxiv BCAS
Referencer
2021-2022

Accounting Standards

Accounting Standards

What are Generally Accepted Accounting Principles in India?
Generally Accepted Accounting Principles (GAAP) are basic accounting principles and guidelines which
provide the framework for more detailed and comprehensive accounting rules, standards and other
industry-specific accounting practices.

In India, the GAAP includes Accounting Standards issued by the Institute of Chartered Accountants of
India (ICAI) / Ministry of Corporate Affairs (MCA) and the law laid down in the respective applicable
acts (for example, Schedule III to Companies Act, 2013, which should be compulsorily followed by all
companies). The ICAI also releases Guidance Notes from time to time on various topics to help in the
accounting process and provide clarity. Indian GAAP also includes opinions issued by Expert Advisory
Committee (EAC) and Ind AS Technical Facilitation Group (ITFG) of ICAI.

Applicability of Various Accounting Standards
Under Indian GAAP, there are three different sets of Accounting Standards applicable to different kinds

of entities which is summarised as follows:

Accounting Standards Applicable to

Indian Accounting Standards (Ind-AS) Companies including NBFCs but excluding Banks and

notified under Companies Act, 2013 Insurance Companies:

[converged in line with IFRS subject to (i) Listed Companies

certain exemptions/exceptions] (ii) Companies having net worth in excess of 250 crore

(iii) Subsidiaries, Associates and Joint Ventures of
Companies covered in (i) & (ii) above.

(iv) Companies voluntarily adopting Ind-AS

Accounting Standards notified under All the Companies other than those Companies to whom

Companies Act, 2013 Ind-AS is applicable. [For detailed applicability refer

table below].

Accounting Standards issued by ICAI Non-Corporate Entities. [For detailed applicability refer
table below].

Applicability of Accounting Standards to Various Entities

Accounting Title of AS Companies Non Corporates
Standard
Non SMCs Level I Level II Level III
SMCs (SMEs) (SMEs)

AS 1 Disclosure of    

Accounting Policies

AS 2 Valuation of Inventories    

AS 3 Cash Flow Statements  Not  Not Not
Applicable in Applicable Applicable
entirety, i.e., in entirety, in entirety,
Optional
i.e., i.e.,
Optional Optional

BCAS 1.1
Referencer
2021-2022

Accounting and Auditing

Accounting Title of AS Companies Non Corporates
Standard
Non SMCs Level I Level II Level III
SMCs (SMEs) (SMEs)

AS 4 Contingencies and   
Events Occurring After
AS 5 the Balance Sheet Date

AS 6 Net Profit or Loss for    
AS 7 the Period, Prior Period
AS 9 Items and Changes in
AS 10 Accounting Policies
AS 11
Depreciation Withdrawn
AS 12 Accounting    
AS 13
AS 14 Construction Contracts    
AS 15 (revised 2002)    

Revenue Recognition    

Property, Plant and
Equipment

The Effects of Changes
in Foreign Exchange
Rates (Revised 2003)

Accounting for    

Government Grants

Accounting for  
Investments

Accounting for    
Amalgamations

Employees Benefits  Relaxations  Relaxations from certain
(Revised 2005)
from certain requirements have been

requirements given to Non-corporate

have been Entities falling in Level

given to II and Level III (SMEs)

SMCs (Refer Note 2)

(Refer Note

2)

AS 16 Borrowing Costs    
AS 17 Segment Reporting
 Not  Not Not

Applicable in Applicable Applicable

entirety, i.e., in entirety, in entirety,

Optional i.e. Optional i.e.,

Optional

1.2 BCAS
Referencer
2021-2022

Accounting Standards

Accounting Title of AS Companies Non Corporates
Standard
Non SMCs Level I Level II Level III
SMCs (SMEs) (SMEs)

AS 18 Related Party    Not
Disclosures Applicable
in entirety,
i.e.
Optional

AS 19 Leases  Relaxations  Relaxations from certain
from certain
requirements requirements have been
have been
given to given to Non-corporate
SMCs
Entities falling in Level
 (Refer Note
2) II and Level III (SMEs)

 Not (Refer Note 2)
applicable to
AS 20 Earnings Per Share SMCs since  Same as Same as
AS 21 relevant
Consolidated Financial Regulators above above
Statements require
compliance  Not applicable to all
with them
only by Non-corporate Entities
certain Non-
SMCs since the relevant
(Refer Note
1) Regulators require

 compliance with them

 Not only by certain Level I
applicable to
SMCs since entities
the relevant
Regulators (Refer Note 1)
require
AS 22 Accounting for Taxes compliance  
AS 23 with them
on Income only by
certain Non-
Accounting for SMCs  Not applicable to all
(Refer Note Non-corporate Entities
Investments in 1) since the relevant
Regulators require
Associates in compliance with them
only by certain Level I
Consolidated Financial entities
(Refer Note 1)
Statements

BCAS 1.3
Referencer
2021-2022

Accounting and Auditing

Accounting Title of AS Companies Non Corporates
Standard
AS 24 Discontinuing Non SMCs Level I Level II Level III
AS 25 Operations SMCs  (SMEs) (SMEs)

AS 26  Applicable Not
AS 27 Applicable
to some Applicable
AS 28
AS 29 non-SMCs in entirety,
where
i.e.
regulators
require to Optional
present
Interim Financial  (Refer Note (Refer Note 3)
interim
Reporting Applicable 3) financial
statements
to some

non-SMCs

where

regulators

require to

present

interim

financial

statements

Intangible Assets   

Financial Reporting  Not  Not applicable to all

of Interests in Joint applicable to Non-corporate Entities

Ventures SMCs since since the relevant

the relevant Regulators require

Regulators compliance with them

require only by certain Level I

compliance entities

with them (Refer Note 1)

only by

certain

Non-SMCs

(Refer Note

1)

Impairment of Assets  Relaxations  Relaxations from certain
 requirements have been
Provisions, Contingent  from certain
given to Non-corporate
Liabilities and requirements Entities falling in Level
II and Level III (SMEs)
Contingent Assets have been
(Refer Note 2)
given to

SMCs

(Refer Note

2)

Notes:

1. AS 21, AS 23 and AS 27 (relating to consolidated financial statements) are required to be
complied with by a company/non-corporate entity if the company / non-corporate entity, pursuant
to the requirements of a statute/regulator or voluntarily, prepares and presents consolidated
financial statements.

1.4 BCAS
Referencer
2021-2022

Accounting Standards

2. Relaxations from certain requirements have been given to SMCs and Non-Corporate Entities
falling in Level II and Level III (SMEs) as follows:

Accounting Details of relaxations
Standard

AS 15 SMCs and Level II and Level III Non-Corporate entities are exempted from the
applicability of the following paragraphs:

Particulars - All SMCs - Level Level II and Level
II and Level III Non- III
Corporate entities
Non-Corporate
where average entities where
no. of persons
employed during the average no.
of persons
year is >=50 employed during
the year is < 50

Recognition and measurement of Exempted
short-term accumulated compensating
absences which are non-vesting
contained in paras 11 to 16

Discounting of amounts that fall due Exempted
more than 12 months after balance sheet
date under para 46 (Defined Contribution
Plans) or para 139 (Termination Benefits)

Recognition and measurement principles Exempted Exempted

under paras 50 to 116 and presentation However, such entities However, such
and disclosure requirements under paras should – entities may –
117 to 123 for accounting of defined

benefit plans a. A c t u a r i a l l y Calculate and

determine and account accrued

provide for liability by

accrued liability reference to some

using PUCM other rational

b. D e t e r m i n e method, e.g. a
discount rate method based
by reference to on assumption
market yields on that such benefits
Govt. bonds at are payable to all
balance sheet employees at end
date of accounting year

c. Disclose actuarial
assumptions as
per para 120(l)

BCAS 1.5
Referencer
2021-2022

Accounting and Auditing

Accounting Details of relaxations
Standard

Recognition and measurement of other Exempted However, such

long-term employee benefits contained in However such entities entities may –
paras 129 to 131
should – Calculate and

a. A c t u a r i a l l y account accrued
determine and liability by

provide for reference to some
accrued liability other rational

using PUCM. method, e.g. a

b. Determine method based
discount rate on assumption
by reference to that such benefits
market yields on are payable to all
Govt. bonds at employees at end
balance sheet of accounting year

date

AS 19 Paras 22 (c), (e) and (f); 25 (a), (b) and (e); 37 (a) and (f); and 46 (b) and (d) relating
to disclosures are not applicable to SMCs/non-corporate entities falling in Level II.

AS 20 Paras 22 (c), (e) and (f); 25 (a), (b) and (e); 37 (a), (f) and (g); and 46 (b), (d) and (e)
AS 28 relating to disclosures are not applicable to Level III entities.

AS 29 Diluted earnings per share (both including and excluding extraordinary items) is not
required to be disclosed by SMCs/ non-corporate entities falling in Level II and Level
III and information required by para 48(ii) of AS 20 is not required to be disclosed by
Level III entities if this standard is applicable to these entities.

SMCs / non-corporate entities falling in Level II and Level III are allowed to measure
the ‘value in use’ on the basis of reasonable estimate thereof instead of computing the
value in use by present value technique.

Consequently, if a SMC / non-corporate entity falling in Level II or Level III chooses
to measure the ‘value in use’ by not using the present value technique, the relevant
provisions of AS 28, such as discount rate etc., would not be applicable to such an
SMC / entity.

Further, such an SMC / entity need not disclose the information required by para
121(g).

Paras 66 and 67 relating to disclosures are not applicable to SMCs / non-corporate
entities falling in Level II and Level III.

3. AS 25, Interim Financial Reporting, does not require a company / non-corporate entity to present
interim financial report. It is applicable only if a company /non-corporate entity is required by
a statute or a regulator or elects to prepare and present an interim financial report. Thus, the
recognition and measurement requirements contained in this Standard are applicable only to the
entities for preparation of interim financial results. For example, presently, SEBI requires listed
entities to present interim financial results, e.g., quarterly financial results, those entities will apply
this Standard.

1.6 BCAS
Referencer
2021-2022

Accounting Standards

Components of Financial Statements

Following are the components of Financial Statements under Ind-AS and IGAAP:

Components of Financial Statements Under Ind AS Under IGAAP
Balance Sheet as at end of the period Yes Yes
Statement of Profit and Loss for the period Yes Yes
Statement of Changes in Equity for the period Yes No
Statement of Cash Flow for the period Yes If applicable
Statement of Significant Accounting Policies Yes Yes
Notes to accounts and other explanatory notes Yes Yes

Synopsis of Material Differences to Key Ind- satisfied at a point of time or over time. If any
ASs vis-à-vis corresponding IGAAP of the conditions specified below are satisfied,
(Note: It is to be noted that the material performance obligation is satisfied over time (and
presented below is a mere summary of the revenue is recognized over time):
Standards and gives a broad overview of the
same and does not cover all the Standards. – Customer simultaneously receives and
The actual Standards are much more detailed consumes benefits provided by the entity’s
in the nature and readers are advised to refer performance as the entity performs;
the same for a comprehensive understanding)
– Entity’s performance creates or enhance an
I. INCOME AND EXPENSES asset that the customer controls as the asset
is created or enhanced;
REVENUE RECOGNITION
– Entity’s performance does not create an
Ind-AS-115 Revenue from Contracts with asset with alternative use to the entity
Customers and the entity has enforceable right for
performance completed to date.
(Significantly different from the corresponding
AS-9 on Revenue Recognition and AS-7 on An entity shall recognise the amount of allocated
Construction Contracts) transaction price as revenue once a performance
obligation is satisfied. Transaction price which
Ind-AS-115 recommends a five step model to can be a fixed or variable amount is determined
recognise revenue: based on the terms of contract and the entity’s
customary practices.
– Identify the contract with a customer
Variable Consideration
– Identify the performance obligations in the If the consideration includes a variable
contract amount, an entity should estimate the amount
of consideration to which it will be entitled in
– Determine the transaction price exchange for transferring the promised goods or
services to a customer.
– Allocate the transaction price to the
performance obligations in the contract The existence of a significant financing
component
– Recognise revenue when (or as) the entity
satisfies the performance obligation by In determining the transaction price, an
transferring a promised goods or services to entity should adjust the promised amount of
a customer. consideration for the time value of money if
significant financing components exist.
For each performance obligation, the entity should
determine whether performance obligation is 1.7

BCAS
Referencer
2021-2022

Accounting and Auditing

Non-Cash Consideration – Pays or promises to pay the consideration
When customer promises to pay consideration
other than in cash form, an entity should measure Allocation of Transaction Price to Performance
it at fair value. If fair value cannot be reasonably Obligation
measured, then entity should measure the Entity should allocate the transaction price to
consideration indirectly by reference to the stand- each performance obligation identified in a
alone selling price of the goods or service in contract on a relative stand-alone selling price
exchange for consideration. basis (It is the price at which an entity would
sell a promised good or service separately to a
Consideration payable to Customer customer). If this price is directly not available, it
Consideration payable to the customer includes should be estimated using methods such as:
cash amounts, credits or other items (voucher
or coupon) and the entity accounts for it as a • The adjusted market assessment approach
reduction of the transaction price (revenue). An
entity should recognise the reduction of revenue • Expected cost plus margin approach
when (or as) either of the following events occurs:
• Residual approach
– Recognises revenue for the transfer of
related goods or service to the customer Disclosures
Entity should disclose qualitative and quantitative
information as indicated below:

Customer Contracts Significant Judgments Any assets
and changes made in recognized from the
applying this standard
cost to obtain or
to those contracts fulfill a contract with

customers

Revenue recognized to be disclosed separately Explain the judgments Closing balance of

from its other sources of revenue used for determining asset recognized from

timing for satisfaction of cost

Any impairment loss recognized on any performance obligation Amount of amortization
and transaction price and and any impairment
receivable or contract assets amount allocated

loss recognized

A reconciliation of the contract price with the
revenue recognised

AS-9- Revenue Recognition Recognition Principles
Revenue from sale of goods and services should
Scope be recognised at the time of sale of goods or
AS-9 does not deal with the following: rendering of services if collection is reasonably
certain; i.e., when risks and rewards of ownership
– Revenue arising from construction contracts, are transferred to the buyer and when effective
hire-purchase and lease agreements; control of the seller as the owner is lost.

– Revenue relating to government grants and In case of rendering of services, revenue must be
other similar subsidies; and recognised either on completed service method
or proportionate completion method by relating
– Revenue of insurance companies from the revenue with work accomplished and certainty
insurance contracts. of consideration receivable.

1.8 BCAS
Referencer
2021-2022

Accounting Standards

Interest is recognised on time basis, royalties on – contracts are performed concurrently or
accrual basis and dividend when owner’s right to in a continuous sequence.
receive payment is established.
• Additional asset construction to be treated as
Disclosures separate construction contract when:
Disclose circumstances in which revenue
recognition has been postponed pending – assets differs significantly in design/
significant uncertainties. technology/function from original
contract assets.
AS 7 - Construction Contracts
– a price negotiated without regard to
Scope original contract price
The AS is applicable in accounting of contracts in
the books of contractor. It is to be noted that this Contract Revenue and Contract Costs
standard is not applicable for construction projects • Contract revenue comprises of:
undertaken by the entity on behalf of its own. It is
also not applicable to service contracts which are – initial amount and
not related to construction of assets.
– variations in contract work, claims and
• Construction contract may be for construction incentive payments that will probably
of a single/combination of interrelated or result in revenue and are capable of
interdependent assets. being reliably measured.

• A fixed price contract is a contract where • Contract cost comprises of:
contract price is fixed or per unit rate is fixed
and in some cases subject to escalation – costs directly relating to specific
clause. contract

• A cost plus contract is a contract in which – costs attributable and allocable to
contractor is reimbursed for allowable or contract activity
defined cost plus percentage of these cost
or a fixed fee. – other costs specifically chargeable to
customer under the terms of contracts.
• In a contract covering a number of assets,
each asset is treated as a separate • Contract Revenue and Expenses to be
construction contract when there are: recognised, when outcome can be estimated
reliably up to stage of completion on
– separate proposals; reporting date.

– subject to separate negotiations and • In Fixed Price Contract outcome can be
the contractor and customer is able to estimated reliably when:
accept/reject that part of the contract;
– total contract revenue can be measured
– identifiable cost and revenues of each reliably
asset
– it is probable that economic benefits will
• A group of contracts to be treated as a single flow to the enterprise;
construction contract when:
– contract cost and stage of completion
– they are negotiated as a single can be measured reliably at the
package; reporting date; and

– contracts are closely interrelated with – contract costs are clearly identified and
an overall profit margin; and measured reliably for comparing actual
costs with prior estimates.

BCAS 1.9
Referencer
2021-2022

Accounting and Auditing

• In cost plus contract outcome is estimated loss should be recognised as an expense
reliably when: immediately.

– it is probable that economic benefits will • Any changes in estimate to be accounted for

flow to the enterprise; and as per AS 5.

– contract cost, whether reimbursable Disclosures
or not, can be clearly identified and – Contract revenue recognised in the period;
measured reliably.

• When outcome of a contract cannot be – Method used to determine recognised
estimated reliably: contract revenue;

– revenue to the extent of which recovery – Methods used to determine the stage of
of contract cost is probable should be completion of contracts in progress;

recognised; – Gross amount due from customers for

– contract cost should be recognised as contract work as an asset; and

an expense in the period in which they – Gross amount due to customers for contract

are incurred; and work as a liability.

– all foreseeable losses must be fully – For contracts in progress:

provided for. • the aggregate amount of costs incurred

• When uncertainties no longer exist, and recognised profits (less recognised

revenue and expenses to be recognised as losses) up to the reporting date;

mentioned above when outcomes can be • amount of advances received; and
estimated reliably.

• When it is probable that contract costs will • amount of retention.

exceed total contract revenue, the expected

Taxes on Income: Significant Differences between AS 22 and Ind AS 12

Topic AS 22, Accounting for Taxes on Ind AS 12, Income Taxes
Income

Deferred Entities are required to calculate the Entities are required to calculate the
tax assets/
liabilities deferred tax assets/ liabilities using the deferred tax assets/ liabilities using the

profit and loss account balance sheet method, focusing on

approach, requiring recognition of tax temporary differences in the accounting
effects of differences between taxable for the expected future tax consequences
of events.
income and accounting income.

For this purpose, differences between For this purpose, temporary differences
taxable income and accounting income are differences between the carrying
are classified into: amount of an asset or

• Timing differences being the liability in the balance sheet and its tax
differences between taxable income base.

and accounting income for a period Temporary differences may be either:

that originate in one period and are

capable of reversal in one or more

subsequent periods.

1.10 BCAS
Referencer
2021-2022

Accounting Standards

Topic AS 22, Accounting for Taxes on Ind AS 12, Income Taxes
Income
Recognition Taxable temporary differences,
of deferred • Permanent differences which are • which are temporary differences
taxes the differences between taxable that will result in taxable amounts
income and accounting income for in future periods when the carrying
Probable a period that originate in one period amount of the asset or liability is
as against and do not reverse subsequently. recovered or settled.
virtual
certainty • Deductible temporary differences,
which are temporary differences
that will result in amounts that are
deductible in determining taxable
profit (tax loss) of future periods
when the carrying amount of the
asset or liability is recovered or
settled

Deferred taxes are generally recognized Deferred tax is recognized for all taxable

for all timing differences arising on temporary differences between accounting

differences in accounting and taxable and tax base of an asset or liability except

income. to the extent of those which arise from:

a. initial recognition of goodwill or

b. asset or liability in a transaction
which:

i. is not a business combination;
and

ii. at the time of the transaction,
affects neither the accounting
nor the tax profit (tax loss).

With respect to unabsorbed With respect to carry forward of unused
depreciation or carry forward of losses tax losses and unused tax credits, a
under tax laws, deferred tax assets deferred tax asset shall be recognized
should be recognized only to the extent to the extent that it is probable that future
that there is virtual certainty supported taxable profit will be available against
by convincing evidence that sufficient which the unused tax losses and unused
future taxable income will be available tax credits can be utilized.
against which such deferred tax assets
can be realized.

However, deferred tax asset for all

other unused credits is recognized to
the extent that there is a reasonable
certainty that sufficient future taxable
income will be available against which

such deferred tax assets can be realized.

BCAS 1.11
Referencer
2021-2022

Accounting and Auditing

Topic AS 22, Accounting for Taxes on Ind AS 12, Income Taxes
Income
Revaluation
of assets No deferred tax is to be recognized if In some jurisdictions, the revaluation or

assets (property, plant and equipment) the restatement of an asset to fair value

are revalued since it is considered as a affects taxable profit (tax loss) for the

permanent difference. current period. As a result, the tax base

of the asset is adjusted, and no temporary

difference arises.

In other jurisdictions, the revaluation
or restatement of an asset does
not affect taxable profit in the period
of the revaluation or restatement and
consequently, the tax base of the asset
is not adjusted. Nevertheless, the future
recovery of the carrying amount will result
in a taxable flow of economic benefits
to the entity and the amount that will
be deductible for the tax purposes will
differ from the amount of those economic
benefits. The difference between the
carrying amount of a revalued asset and
its tax base is a temporary difference
and give rise to a deferred tax liability or
asset.

Investment in No deferred tax required to be recognized With respect to all taxable temporary

subsidiaries, in respect thereof. differences, deferred tax liability is

branches and Deferred tax expense is an aggregate recognized on unrealised / accumulated
associates total from separate financials statements profits, except to the extent that both of
and interest of each entity of the group with no the following conditions are satisfied:
in joint adjustment on consolidation.
ventures • The parent, the investor, the
venture or joint operator is able to

control timing of the reversal of the

temporary difference, and

Tax benefits No equivalent guidance. • It is probable that the temporary
related to difference will not reverse in the
share-based foreseeable future.
payments.
With respect to share based payments,
deferred tax benefit is calculated based
on the tax deduction for the share-based
payment under the applicable tax law.

1.12 BCAS
Referencer
2021-2022

Accounting Standards

Topic AS 22, Accounting for Taxes on Ind AS 12, Income Taxes
Income

Changes No equivalent guidance. Current tax and deferred tax
consequences are required to be
in tax included in the statement of profit or loss
of the period of change unless those
status of an consequences relate to transactions
and events recognized outside the
entity or its statement pf profit or loss either in other
comprehensive income or directly in
shareholders. equity in the same or a different period.

Recognition No equivalent guidance. Current tax and deferred tax shall be

of taxes on However, ICAI has issued an recognized outside profit or loss if the
items recog- announcement in this regard. This tax relates to items that are recognized,
nized in other announcement requires any expense in the same or a different period, outside
comprehen- charged directly to reserve and/or profit or loss. Therefore, the tax on items
sive income securities premium account to be net of recognized in other comprehensive
or directly in benefits that arise from the admissibility income or in equity, is also recorded in
equity of such expense for tax purpose. other comprehensive income or in equity
as appropriate.

Similarly, any income credited directly to

a reserve account should be net of its tax

effect.

Deferred tax No equivalent guidance. • Acquired deferred tax benefits
in respect recognized within the measurement
of business period that result from new
combination information about facts and
circumstances that existed at the
acquisition date shall be applied to
reduce the carrying amount of any
goodwill related to that acquisition. If
the carrying amount of that goodwill
is zero, any remaining deferred
tax benefits shall be recognized in
other comprehensive income and
accumulated in equity as capital
reserve or recognized directly in
capital reserve.

• All other acquired deferred tax
benefits realized shall be recognized
in profit or loss (or, if Ind AS 12 so
requires, outside profit or loss).

• An entity does not recognize deferred
tax liabilities arising from the initial
recognition of goodwill.

BCAS 1.13
Referencer
2021-2022

Accounting and Auditing

Topic AS 22, Accounting for Taxes on Ind AS 12, Income Taxes
Tax holiday Income
period
The deferred tax in respect of timing No equivalent guidance.
Disclosures differences which reverse during the tax
holiday period is not recognized to the
extent the enterprise’s gross total income
is subject to certain deduction during the
tax holiday period as per the Income Tax,
Act, 1961. In certain cases, the deferred
tax in respect of timing differences which
reverse during the tax holiday period is
not recognized to the extent deduction
from the total income of an enterprise is
allowed during the tax holiday period.

Deferred tax in respect of timing
differences which reverse after the tax
holiday period is recognized in the year
in which the timing differences originate.

However, recognition of deferred tax A reconciliation between the income
assets is subject to the consideration of tax expense reported and the
prudence. For the above purposes, the product of accounting profit multiplied
timing differences which originate first are by the applicable tax rate.
considered to reverse first.

These additional disclosures are not a)
required.

b) Unrecognized deferred tax liability
on undistributed earnings of
subsidiaries, branches, associates &
joint venture.

c) Details of tax holidays and the expiry
date thereof.

Borrowing Cost: Significant Differences between AS 16 and Ind AS 23

Topic AS 16, Borrowing Cost Ind AS 23, Borrowing Cost

Components of Borrowing costs include: Borrowing costs include:
borrowing costs
a. interest and commitment charges a. interest expense calculated using

on bank borrowings; and other the effective interest method as

short-term and long-term described in Ind AS 109, Financial

borrowings; Instruments;

b. amortization of discounts or b. finance charges in respect of finance

premiums relating to borrowings; leases recognized in accordance

with Ind AS 116, Leases; and

1.14 BCAS
Referencer
2021-2022

Accounting Standards

Topic AS 16, Borrowing Cost c. Ind AS 23, Borrowing Cost
c. amortization of ancillary
Substantial exchange differences arising from
period of time costs incurred in connection with foreign currency borrowings to the
the arrangement of borrowings; extent that they are regarded as an
Weighted adjustment to interest costs.
average
borrowing cost d. finance charges in respect of
Disclosure assets acquired under finance
leases or under other similar
arrangements; and

e. exchange differences arising from
foreign currency borrowings to the
extent that they are regarded as
an adjustment to interest costs.

A qualifying asset is an asset that A qualifying asset is an asset that
necessarily takes a substantial period necessarily takes a substantial period
of time to get ready for its intended use of time to get ready for its intended use
or sale. AS 16 provides that ordinarily, or sale. However, Ind AS 23 does not
a period of 12 months is considered provide any guidance on this term
as substantial period of time unless a unlike AS 16.
shorter or longer period can be justified
on the basis of facts and circumstances
of the case. In estimating the said
period, time which an asset takes,
technologically and commercially, to
be ready for its intended use or sale is
considered.

No equivalent guidance In some circumstances, it is appropriate
to include all borrowings of the parent
and its subsidiaries when computing a
weighted average of the borrowing costs;
in other circumstances, it is appropriate
for each subsidiary to use a weighted
average of the borrowing costs applicable
to its own borrowings.

The financial statements should An entity shall disclose:

disclose: a. the amount of borrowing costs

a. the accounting policy adopted for capitalized during the period; and

borrowing costs; and b. the capitalization rate used

b. the amount of borrowing costs to determine the amount of

capitalized during the period. borrowing costs eligible for

capitalization.

BCAS 1.15
Referencer
2021-2022

Accounting and Auditing

Employee Benefit Expenses: Significant Differences between AS 15 and Ind AS 19

Topic AS 15, Employee Benefits Ind AS 19, Employee Benefits

Definition of Employees includes only whole-time Employees include directors.
Employee directors.

A c t u a r i a l The detailed actuarial valuation of Detailed actuarial valuation needs to

valuation the present value of defined benefit be undertaken to determine that the

obligations may be made at intervals present value of the net defined benefit

not exceeding three years. However, liability (asset) is performed with

with a view that the amounts sufficient regularity so that the amounts

recognized in the financial statements recognized in the financial statements do

do not differ materially from the not differ materially from the amounts that

amounts that would be determined at would have been determined at the end

the balance sheet date, the most recent of the reporting period. It however does

valuation is reviewed at the balance not specify what constitutes sufficient

sheet date and updated to reflect any regularity.

material transactions and other material

changes in circumstances (including

changes in interest rates) between the

date of valuation and the balance sheet

date.

The fair value of any plan assets is
determined at each balance sheet date.

Actuarial gains All actuarial gains and losses should Actuarial gains and losses representing
and losses
be recognized immediately in the changes in the present value of the
Discount rate
statement of profit and loss. defined benefit obligation resulting from

experience adjustment and effects of

changes in actuarial assumptions are

recognized in other comprehensive

income and not reclassified to profit or

loss in a subsequent period.

Discount rate to be used for The rate used to discount post-

determining defined benefit obligation employment benefit obligations shall

is by reference to market yields at the be determined by reference to market

balance sheet date on government yields at the end of the reporting

bonds of a currency and terms period on government bonds. However,

consistent with the currency and requirements given in IAS 19 in this

term of the post-employment benefit regard have been retained with

obligations. appropriate modifications for currencies

other than Indian rupee.

1.16 BCAS
Referencer
2021-2022

Accounting Standards

Topic AS 15, Employee Benefits Ind AS 19, Employee Benefits
Defined benefit
plans The changes in defined benefit liability The change in the defined benefit liability
(surplus) has the following components: (asset) has the following components:
Past service
cost and a. Service cost- recognized in profit a. Service cost - recognized in profit or
curtailments
or loss loss;
Termination
benefits b. Interest cost- recognized in profit b. Net interest cost (i.e. time value) on

or loss the net defined benefit deficit/(asset)-

c. The expected return on any plan recognized in profit or loss;

assets -recognized in profit or loss; c. Re-measurement including:

d. Net actuarial gains and losses i. changes in fair value of plan
recognized in profit or loss. assets that arise from factors
other than time value; and

ii. actuarial gains and losses on

obligations - recognized in

other comprehensive income.

Past service cost is recognized as Past service cost (including curtailments)

under: is recognized as an expense at the earlier

a. As an expense on a straight-line of the following dates:

basis over the average period until a. when the plan amendment or

the benefits become vested. curtailment occurs; and

b. If benefits already vested b. when the entity recognizes related
recognized as an expense restructuring costs or termination
immediately entities recognize benefits.
a curtailment when it occurs.
However, when a curtailment
is linked with restructuring it is
accounted for at the same time as
the related restructuring.

An enterprise should recognize An entity shall recognize a liability and

termination benefits as a liability and expense for termination benefits at the

an expense when, and only when: earlier of the following dates:

a. the enterprise has a present a. when the entity can no longer

obligation as a result of a past withdraw the offer of those benefits;

event; and

b. it is probable that an outflow of b. when the entity recognises costs

resources embodying economic for a restructuring that is within the

benefits will be required to settle scope of Ind AS 37 and involves the

the obligation; and payment of termination benefits.

c. a reliable estimate can be made of
the amount of the obligation.

BCAS 1.17
Referencer
2021-2022

Accounting and Auditing

Effects of Changes in Foreign Exchange Rates: Significant Differences between AS 11 and Ind
AS 21

Topic AS 11, The Effects Changes in the Ind AS 21, The Effects of Changes in

Foreign Exchange Rates Foreign Exchange Rates

Functional and There is no concept of functional Functional currency is the currency of the

p r e s e n t a t i o n currency. AS-11 does not specify primary economic environment in which

currency the currency in which an enterprise the entity operates.

presents its financial statements. Foreign currency is a currency other than

However, an enterprise normally uses the functional currency.

the currency of the country in which it Presentation currency is the currency
is domiciled. in which the financial statements are

AS-11 defines the term ‘Foreign presented. ·

Currency’ as a currency other than

the reporting currency which is the

currency in which financial statements

are presented

Exchange In general, exchange differences In general, exchange differences arising
differences
arising both on: both on:

a) Transactions settled during the a) Transactions settled during the

period; and period; and

b) Upon re-translation of the b) Upon retranslation of the monetary

monetary items at the balance items at the balance sheet date

sheet date are recorded in the profit and loss for the

are recorded in the profit and loss for period.

the period. Long-term foreign currency monetary

Long-term foreign currency items:

monetary items: With respect to exchange differences

Exchange differences arising on reporting arising on reporting of long-term foreign

of long-term foreign currency monetary currency monetary items, similar to

items at rates different from those Indian GAAP. an entity may continue the

at which they were initially recorded policy adopted for exchange differences

during the period or reported in previous arising from long term foreign currency

financial statements, in so far as they monetary items recognised in the

relate to the acquisition of a depreciable financial statements for the period ending

capital asset, can be added to or immediately before the beginning of the

deducted from the cost of the asset and first Ind AS financial reporting period as

shall be depreciated over the balance per the previous GAAP, However, this

life of the asset and in other cases, can option is only available in respect

be accumulated in a “Foreign Currency of those long term foreign currency

Monetary Item. Translation Difference monetary items which are acquired on

Account” in the financial statements and or before the date of convergence with

amortized over the balance period Ind AS.

1.18 BCAS
Referencer
2021-2022

Accounting Standards

Topic AS 11, The Effects Changes in the Ind AS 21, The Effects of Changes in
Foreign Exchange Rates Foreign Exchange Rates
Translation
in the of such long-term asset/liability, by
consolidated recognition as income or expense in
financial each of such periods. There is no time
statements limit for availing this option.

Net investment in a non-integral
foreign operation:

Exchange differences on monetary
financial items that in substance, form
part of net investment non-integral
foreign operation is recognised in
the ‘Foreign Currency Translation
Reserve’ in the separate financial
statements and recognised as income
or expense at the time of disposal of
operation.

Translation of financial statement Assets and liabilities should be translated

of foreign operation to the reporting from functional currency to presentation

currency of the parent/investor is currency at the closing rate at the date of

dependent upon the classification of the statement of financial position.

the said operation as integral or non- Income and expenses should be
integral. translated at actual/average rates for the

Integral foreign operation: period.

a) Monetary assets are translated at Exchange differences are recognised

closing rate. in other comprehensive income and

b) Non-monetary items are translated accumulated in a separate component of
at historical rate if they are valued equity.

at cost. These are reclassified from equity to profit

c) Non-monetary items which are or loss (as a reclassification adjustment)
carried at fair value or other when the gain or loss on disposal is
valuation basis are reported using recognised.

closing rate.

d) Income and expense items are
translated at historical/average
rate.

e) Exchange differences are taken to
the statement of profit and loss.

BCAS 1.19
Referencer
2021-2022

Accounting and Auditing

Topic AS 11, The Effects Changes in the Ind AS 21, The Effects of Changes in

Derivatives Foreign Exchange Rates Foreign Exchange Rates
Forward
exchange Non-integral foreign operations Loss of control:
contracts
a) All assets and liabilities are to be Treatment of disposal depends
1.20
translated at closing rate. on whether control is lost or not.

b) Profit and loss account items are Thus, if control is lost, the exchange
translated at actual/average rates). difference attributable to the parent is
reclassified to profit or loss from foreign

The resulting exchange difference currency translation reserve in other

is taken to Foreign Currency comprehensive income.

Translation Reserve and is transferred

to profit and loss on the disposal of the

non-integral foreign operation.

Loss of control:

Treatment for disposal does not depend
on whether control over a foreign
subsidiary is lost or not. Even if control
is lost, only proportionate amount of
exchange difference in the foreign
currency translation reserve is recycled
to statement of profit and loss.

AS 11 applies to exchange differences Ind AS 21 includes within its scope the

on all forward exchange contracts foreign currency derivatives that are not

including those entered into to hedge within the scope of Ind AS 109 (e.g.

the foreign ‘currency risk of assets some foreign currency derivatives that are

and liabilities. However, AS 11 is not embedded in other contracts)

applicable to the exchange difference Further, Ind AS 21 is applicable when
arising on forward exchange contracts amounts relating to derivatives are
entered into to hedge the foreign translated from its functional currency to
currency risks of future transactions its presentation currency
covered by firm commitments or which

are highly probable forecast transactions.

Contracts not intended for trading or Forward exchange contracts and other

speculation purposes: similar financial instruments which are

a) Any premium or discount arising covered under Ind AS 109, are excluded

at the inception of a forward

exchange contract is amortized as

expense or income over the life of

the contract.

b) Exchange differences on such
a contract are recognized in the
statement of profit and loss in
the reporting period in which the
exchange rates change.

BCAS
Referencer
2021-2022

Accounting Standards

Topic AS 11, The Effects Changes in the Ind AS 21, The Effects of Changes in
Foreign Exchange Rates Foreign Exchange Rates

Exchange difference on such forward
exchange contracts is the difference
between:

(a) the foreign currency amount
of contract translated at the
exchange rate at the reporting
date or the settlement date where
the transaction is settled during
the reporting period, and

(b) the same foreign currency amount
translated at the later of the
date of inception of the forward
exchange contract and the last
reporting date.

Contracts intended for trading or
speculation purposes:

The premium or the discount on the
contract is ignored at each balance
sheet date. The value of the contract
is marked to its current market value
and the gain or loss on the contract is
recognized

II. ASSETS AND LIABILITIES

Property Plant and Equipment: Significant Differences between AS 10 and Ind AS 16

TOPIC AS 10 Property, Plant and IND AS 16 Property, Plant and
Equipment Equipment

Review of Estimates with respect to residual value The residual value should be reviewed
residual value
are not required to be reviewed and at least at each financial year-end and,

updated. the change(s) shall be accounted for as

a change in an accounting estimate in

accordance with Ind AS 8.

Reassessment Needs to be reviewed periodically. Reviewed at least at each financial year-

of useful life However, the timelines are not end or more frequently if circumstances

specified warrant.

Frequency of No equivalent guidance Revaluations are required to be made
revaluation with sufficient regularity to ensure that the
carrying value does not differ materially
from the fair value at the end of the
previous reporting period.

BCAS 1.21
Referencer
2021-2022

Accounting and Auditing

TOPIC AS 10 Property, Plant and IND AS 16 Property, Plant and
Equipment Equipment
Government
grant received AS 12 provides an option of reducing Ind AS 20 does not allow the same.
for PPE the grant received from the gross value
Cost of major of the asset concerned.
Inspections
Costs of major inspections are Cost of major inspections is recognized in
generally expensed when incurred. the carrying amount of PPE, if recognition

criteria are satisfied and any remaining
carrying amount of the cost of previous
inspection is derecognized.

Intangible Assets: Significant Differences between AS 26 and Ind AS 38

TOPIC AS 26 IND AS 38

Separately No such provision In the case of separately acquired
acquired intangibles, the criterion of probable inflow
Intangible of expected future economic benefits is
Assets always considered satisfied, even if there
is uncertainty about the timing or the
amount of the inflow.

Revenue based Does not specifically deal with revenue There is a rebuttable presumption that
amortization
method based amortization method an amortization method that is based on

the revenue generated by an activity that

includes the use of an intangible asset

is inappropriate. Ind AS 38 allows use of

revenue based method of amortization of

intangible asset, in a limited way

Payment No such provision If payment for an intangible asset is
deferred deferred beyond normal credit terms, the
beyond normal difference between this amount and the
credit terms total payments is recognized as interest
expense over the period of credit unless
it is capitalized as per Ind AS 23

Acquired in Refers only to intangible assets Ind AS 38 deals in detail in respect of
Business acquired in an amalgamation in the intangible assets acquired in a business
Combination nature of purchase and does not refer combination.
to business combinations as a whole

Intangible When an asset is acquired in exchange Requires that if an intangible asset is

Assets acquired for another asset, its cost is usually acquired in exchange of a non- monetary

in exchange determined by reference to the fair asset, it should be recognized at the fair

market value of the consideration value of the asset given up unless; (a) the

given. It may be appropriate to consider exchange transaction lacks commercial

also the fair market value of the asset substance or (b) the fair value of neither

acquired if this is more clearly evident. the asset received nor the asset given up

An alternative accounting treatment is is reliably measurable.

to record the asset acquired at the net

1.22 BCAS
Referencer
2021-2022

Accounting Standards

TOPIC AS 26 IND AS 38

book value of the asset given up; in
each case an adjustment is made for
any balancing receipt or payment of
cash or other consideration also.

Intangible Intangible assets acquired free of When intangible assets are acquired free

Assets acquired charge or for nominal consideration by of charge or for nominal consideration

Free of Charge way of government grant is recognized by way of government grant, an entity

or for a Nominal at nominal value or at acquisition cost, should, in accordance with Ind AS 20,

Consideration as appropriate plus any expenditure record both the grant and the intangible

by way of that is attributable to making the asset asset at fair value.

Government ready for intended use.

Grant

Useful life of an Assumption that the useful life of an Recognizes that the useful life of an
Intangible Asset intangible asset is always finite, and intangible asset could even be indefinite

includes a rebuttable presumption that subject to fulfillment of certain conditions,
the useful life cannot exceed ten years in which case it should not be amortized
from the date the asset is available for but should be tested for impairment.
use.

Valuation model Revaluation model is not permitted Permits an entity to choose either the

model as its accounting policy cost model or the revaluation

Change in Change in the method of amortization This would be a change in accounting
method of
amortization is a change in accounting policy estimate.

IND AS 40 : Investment Property (No – The cost of investment property can be
corresponding standard under IGAAP, except measured reliably.
that AS-13 provides for the cost model to be
adopted on similar lines as for Property, Plant Measurement at Recognition
and Equipment) An owned investment property shall be
measured initially at cost. Transaction costs are
Definition of Investment Property included in the initial investment.
Investment property is property (land or building
or part of a building or both) held by the owner or Deferred payments:- If payment for an
by the lessee as a right to use the asset) to earn investment property is deferred, its cost is the
rentals or for capital appreciation or both rather cash price equivalent.
than for:
Investment property acquired through
– Use in the production or supply of goods or exchange of another asset:- The cost of
service or for administrative purpose or Investment property is measured at fair value of
Investment Property unless:
– Sale in the ordinary course of business
– The exchange transaction lacks commercial
Recognition substance
– Probable that future economic benefits that
– The fair value of neither the asset
are associated with the investment property received nor the asset given up is reliably
will flow to entity. measurable.

BCAS 1.23
Referencer
2021-2022

Accounting and Auditing

Derecognition Identifying a lease
An investment property shall be derecognised At inception of a contract, an entity shall assess
on disposal or when the investment property is whether the contract is, or contains, a lease. A
withdrawn permanently from use and no further contract is, or contains, a lease if the contract
economic benefits are expected from its disposal. conveys the right to control the use of an
identified asset for a period of time in exchange
Disclosures for consideration.
– The accounting policy for measurement of
Lease term
investment property. An entity shall determine the lease term as the
non-cancellable period of a lease, together with
– The criteria it uses to distinguish investment both:
property from owner occupied property and
from property held for sale in the ordinary (a) Periods covered by an option to extend the
course of business. lease if the lessee is reasonably certain to
exercise that option; and
– The revenue and expenses incurred on the
investment property (b) Periods covered by an option to terminate
the lease if the lessee is reasonably certain
– Contractual obligations associated with the not to exercise that option.
investment property.
I. LESSEE
– Reconciliation of investment property at
carrying amounts at the beginning and end Recognition
of reporting period. At the commencement date, a lessee shall
recognise a right-of-use asset and a lease
Ind AS 116 : Leases (applicable w.e.f. April 1, liability.
2019) (Significantly different from AS 19)
Measurement
Scope Initial measurement of the right-of-use asset:
An entity shall apply this Standard to all leases,
including leases of right-of-use assets in a At the commencement date, a lessee shall
sublease measure the right-of-use asset at cost.

Recognition exemptions The cost of the right-of-use asset shall comprise:
A lessee may elect not to apply the Standard to
the following leases: (a) The amount of the initial measurement of the
lease liability (as stated below)
(a) Short-term leases (a lease at the
commencement date has a lease term of (b) any lease payments made at or before
12 months or less and does not contain a the commencement date, less any lease
purchase option); and incentives received;

(b) Leases for which the underlying asset is of (c) any initial direct costs incurred by the lessee;
low value. and

If a lessee elects not to apply the recognition (d) an estimate of costs to be incurred by the
requirements to the above, it shall recognise the lessee in dismantling and removing the
lease payments associated with those leases as underlying asset, restoring the site on which
an expense on either a straight-line basis over the it is located or restoring the underlying asset
lease term or another systematic basis. to the condition required by the terms and

1.24 BCAS
Referencer
2021-2022

Accounting Standards

conditions of the lease, unless those costs (d) The expense relating to leases of low-value
are incurred to produce inventories. assets.;

Initial measurement of the lease liability: (e) The expense relating to variable lease
payments not included in the measurement
At the commencement date, a lessee shall of lease liabilities;
measure the lease liability at the present value of
the lease payments that are not paid at that date. (f) Income from subleasing right-of-use assets;

(The lease payments shall be discounted using (g) Total cash outflow for leases;
the interest rate implicit in the lease, if that rate
can be readily determined. If that rate cannot (h) Additions to right-of-use assets;
be readily determined, the lessee shall use the
lessee’s incremental borrowing rate.) (i) Gains or losses arising from sale and
leaseback transactions; and
Presentation
A lessee shall either present in the balance sheet, (j) The carrying amount of right-of-use assets
or disclose in the notes: at the end of the reporting period by class of
underlying asset.
(a) Right-of-use assets separately from other
assets. II. LESSOR
A lessor shall classify each of its leases as either
(b) Lease liabilities separately from other an operating lease or a finance lease.
liabilities.
Finance Lease
In the statement of cash flows, a lessee shall A lease is classified as a finance lease if it
classify: transfers substantially all the risks and
rewards incidental to ownership of an underlying
(a) Cash payments for the principal portion of asset and if not then it is operating lease.
the lease liability within financing activities;
Recognition and Measurement
(b) Cash payments for the interest portion of At the commencement date, a lessor shall
the lease liability within financing activities recognise assets held under a finance lease
applying the requirements in Ind AS 7, in its balance sheet and present them as a
Statement of Cash Flows, for interest paid; receivable at an amount equal to the net
and investment in the lease.

(c) Short-term lease payments, payments Operating Leases
for leases of low-value assets and
variable lease payments not included in the Recognition and Measurement
measurement of the lease liability within A lessor shall recognise lease payments from
operating activities. operating leases as income on either a straight-
line basis or another systematic basis.
Disclosures
A lessee shall disclose (In Tabular Format) the Presentation
following amounts for the reporting period: A lessor shall present underlying assets subject to
operating leases in its balance sheet according to
(a) Depreciation charge for right-of-use assets the nature of the underlying asset.
by class of underlying asset;

(b) Interest expense on lease liabilities;

(c) The expense relating to short-term leases;

BCAS 1.25
Referencer
2021-2022

Accounting and Auditing

Recent Amendment in Ind AS 116 • Rent consideration should affect only the
Ind AS 116 defines a lease modification as a lease payments originally due on or before
change in scope of lease, or the consideration 30th June 2022.
of lease, that was not a part of the original terms
and conditions of the lease. If a change in lease • There should be no substantive changes to
payments results from a lease modification, then the terms and conditions of the lease.
unless the change meets particular criteria to
be accounted for as a separate lease, a lessee The amendment does not affect lessors. Lessors
is required to remeasure the lease liability by are required to continue to assess if the lease
discounting the revised lease payments using a concessions are lease modifications and account
revised discount rate. for them accordingly.

The following amendments have been made Disclosures
with respect to COVID-19 related to rent A lessor shall disclose (Tabular Format) the
concessions such as rent holidays and following amounts for the reporting period:
temporary rent reductions:
(a) For finance leases:
Practical expedient: As a practical expedient, (i) Selling profit or loss;
the amendments permit lessees, not to assess
whether rent concessions that meet specified (ii) Finance income on the net investment
conditions are lease modifications. Hence, the in the lease; and
lessee can account for those rent concessions as
if they were not lease modifications. (iii) Income relating to variable lease
payments not included in the
Conditions to be complied for applying the measurement of the net investment in
practical expedient are as follows: the lease.

• Rent concession should be direct (b) For operating leases:
consequence of COVID-19 pandemic. (iv) Lease income, separately disclosing
income relating to variable lease
• Revised consideration for the lease shall payments that do not depend on an
be substantially the same as, or less than index or a rate.
the consideration for the lease immediately
preceding changes.

Inventories: Significant differences between AS 2 and Ind AS 2

Topic AS 2, Inventories Ind AS 2, Inventories

Inventory No specific guidance Requires that inventory of service provider may be
of Service described as “work- in-progress”.
Provider

Inventory held No specific guidance Does not apply to measurement of inventories held
by Commodity by commodity broker-traders, who measure their
Broker- trader inventories at fair value less costs to sell.

Reversal of No specific guidance Write-down of inventory is reversed if the circumstance
write-down of of write-down no longer exists or when there is clear
inventory evidence of increase in NRV because of change in
circumstances.

The amount of reversal in such cases is limited to
amount of original write-down.

1.26 BCAS
Referencer
2021-2022


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