ICDS - INCOME COMPUTATION AND DISCLOSURE STANDARDS BY DR. VINOD SINGHANIA

The Income Computation and Disclosure Standards (ICDS) are applicable with effect from the assessment year 2017-18. ICDS affects the compliance practice of all taxpayers following the mercantile system of accounting for computing business income and income from other sources. Difference between ICDS and Ind AS/AS has significant cash and tax impact (including risk of a best judgement assessment in case of non-compliance).

Besides discussing various practical application issues pertaining to ICDS, one day interactive seminar will also cover Thin Capitalisation, Minimum Alternate Tax, Remuneration Planning and Taxation of Retirement Benefits.

Course Outline:

Income Computation and Disclosure Standards 

• Clause by clause discussion with Case Studies
• ICDS-I : Accounting policies
• ICDS-II : Valuation of inventories
• ICDS-III : Construction contracts
• ICDS-IV : Revenue recognition
• ICDS-V : Tangible fixed assets
• ICDS-VI : Effects of changes in foreign exchange rates
• ICDS-VII : Government grants
• ICDS-VIII : Securities
• ICDS-IX : Borrowing costs
• ICDS-X : Contingent assets
• Judicial ruling on ICDS
• Expected losses or mark-to-market (MTM) losses
• Difference between ICDS and IndAS/AS
• Transitional provisions
• Disclosure requirements

Thin Capitalisation

• Limitation on interest deductibility under section 94B

Minimum Alternate Tax (MAT)

• Provisions of section 115JB
• ICDS and MAT
• Tax planning and case studies

Modification in Tax Audit Form No. 3CD

• Recent modification in Form No. 3CD –
• 29A : Income chargeable under section 56(2)(ix)
• 29B : Income chargeable under section 56(2)(x)
• 30A : Primary adjustment as per section 92CE(1)
• 30B : Expenditure by way of interest as per section 94B(1)
• 30C : GAAR as per section 96
• 31 : Receipt/payment exceeding Rs. 2 lakh as specified in section 269ST
• 34(b) : TDS quarterly statements
• 36A : Receipt of deemed dividend under section 2(22)(e)
• 42 : Statement in Form No. 61/61A/61B
• 43 : Country-by-country reporting (CbCR)
• 44 : Break-up of total expenditure of entities registered or not registered under GST
• Fees includes lunch, tea, course material etc.

Target Audience:

• Tax Heads
• Finance Head
• CFOs
• Corporate Tax and Accounting professionals