Corporate Updates – 02-09-2014


MCA on the basis of representations received from the stakeholders has issued a Clarification regarding Accounting Standards (AS) 10 – Capitalization of Cost in cases of Competitive Bid power projects. Accounting Standards AS-10 and AS-16 prescribe the principles of capitalization of various costs based on the underlying concept that only such expenditure should be capitalized as form a part of the cost of fixed assets which increase the worth of the assets. Cost incurred during the extended delay in commencement of commercial production after the plant is otherwise ready does not increase the worth of fixed assets. Such costs cannot, therefore, be capitalized. It is further clarified that AS 10 and AS 16 are applicable irrespective of whether the power projects are “cost plus projects” or “Competitive Bid projects”.


CBDT has instructed all the Supervisory officers i.e CCsIT, CsIT and the Addl. CsIT to strictly maintain the appointment schedule in spirit with the Citizen’s Charter, 2014 of the Department which specifically provides that we (in the Department) endeavour "to adhere to the schedule of appointments with taxpayers. It has been brought to the notice of the Board that many persons called for hearing etc. on a day by an officer are given the same time for appearance and such actions, apart from causing avoidable inconvenience to the taxpayers / witnesses / representatives etc. cause great embarrassment to the Government.

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