| COURT: | ITAT Jaipur |
| CORAM: | Kul Bharat (JM), Vikram Singh Yadav (AM) |
| SECTION(S): | 145(2), 145(3) |
| GENRE: | Domestic Tax |
| CATCH WORDS: | Accounting Standards, Guidance Note, ICAI, percentage completion method, revenue recognition |
| COUNSEL: | P. C. Parwal |
| DATE: | December 22, 2017 (Date of pronouncement) |
| DATE: | January 29, 2018 (Date of publication) |
| AY: | 2012-13 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 145(2): Law on how revenue should be recognized by a developer of property under the “percentage completion method” in the light of Accounting Standards AS-1, AS-7 & AS-9, the Guidance Note on Accounting for Real Estate Transactions issued by the ICAI and several judgements on the issue explained | |
As per AS 7, the recognition of revenue and expenses by reference to the stage of completion of a contract is often referred to as the percentage completion method. Under this method, contract revenue is matched with the contract costs incurred in reaching the stage of completion, resulting in the reporting of revenue, expenses and profit which can be attributed to the proportion of work completed
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