Is ICDS III applicable to builders?
Guidance Note on ICDS issued by ICAI also states that the ICDS III is not applicable to real estate developers. Hence, from all these instances, it is very clear that the ICDS III is not applicable to real estate developers and applies only to the contractors.
What is Icds 1?
ICDS I provides that any mark to market loss or expected loss should not be recognized unless ICDS provides for that. AS 1 considers ‘prudence’ as one of the factor to select or change the accounting policy, according to which profits should be recognized only when it is realized, whether in cash or not.
For whom is applicable ICDS?
It is applicable to all taxpayers (corporate/non-corporate or resident/non-resident) irrespective of the turnover or income. If there is any conflict, then the Income Tax Act will prevail over ICDS. Income Tax Authorities have the power to assess the income on the best judgment basis on non-compliance of ICDS.
What is construction contract as per AS 7?
A Construction Contract is any contract which is entered into specifically for construction of an asset or a combination of assets that are closely inter-linked or inter-dependent w.r.t. their technology/design/function or the nature of their ultimate purpose or use.
What is ICDS III?
ICDS III deals with the determination of income earned from construction contracts. For this ICDS, construction contracts are classified under fixed-price contracts and cost-plus contracts. Fixed Price Contract– The contractor agrees to receive fixed rate per unit of output or fixed price for the whole contract.
Is as 7 applicable to developers?
AS-7 is applicable to a “Contractor” and not to a “Developer”
What do you mean by ICDS?
Integrated Child Development Services
Integrated Child Development Services (ICDS) scheme is world’s largest community based programme. The scheme is targeted at children upto the age of 6 years, pregnant and lactating mothers and women 16–44 years of age. The scheme is aimed to improve the health, nutrition and education (KAP) of the target community.
Is as 7 applicable to builders?
Revised Accounting Standard 7- ‘Construction Contract’ is applicable to only contractors and not to builders and real estate consultants. Accordingly, the Project Completion Method consistently followed by the taxpayer for recognising revenue in the books of accounts cannot be regarded as an unreasonable.
What is ICDs III?
ICDS III deals with the determination of income earned from construction contracts. For this ICDS, construction contracts are classified under fixed-price contracts and cost-plus contracts. Fixed Price Contract – The contractor agrees to receive fixed rate per unit of output or fixed price for the whole contract.
How are construction contracts classified under ICDS?
For this ICDS, construction contracts are classified under fixed-price contracts and cost-plus contracts. Fixed Price Contract – The contractor agrees to receive fixed rate per unit of output or fixed price for the whole contract. Cost Plus Contract – The cost with a defined percentage markup on the cost is reimbursed to the contractor.
What are the different types of construction contracts?
For this ICDS, construction contracts are classified under fixed-price contracts and cost-plus contracts. Fixed Price Contract – The contractor agrees to receive fixed rate per unit of output or fixed price for the whole contract.
What are the differences between as 7 and ICDs?
AS 7 does not specifically provide for borrowing cost being part of the contract cost. 3. Initial stage of contract shall not extend beyond 25\% of the total contract completion stage. It does not define any percentage for the initial stage of contract. 4. ICDS does not provide for recognition of any expected loss.