Full day course on Draft Tax Accounting standards

Full day course on Draft Tax Accounting standards

The Final Report of the Committee along with the draft TAS represents a significant move towards providing a uniform basis for computation of...

The draft TAS will also remove one of the significant impediments to adoption of Ind AS

In order to bring greater clarity around computation of taxable income, the Central Board of Direct Taxes (CBDT) constituted the Accounting Standard Committee (the Committee) in December 2010. The Ministry of Finance had subsequently issued a Discussion Paper on Tax Accounting Standards (TAS) on October 17, 2011 with draft recommendations by the Committee. The CBDT recently issued the final Committee report along with the drafts of 14 individual TASs for public comments.

The Final Report of the Committee along with the draft TAS represents a significant move towards providing a uniform basis for computation of taxable income. Many of the differences between the TAS and the Accounting Standards (AS) issued by Institute of Chartered Accountants of India(ICAI) are intended to harmonise the basis for computation of taxable profits with the existing provisions of the Income-Tax Act 1961 (the Act). Companies would therefore have a comprehensive framework based on which adjustments may be made each year to their accounting profits to determine taxable income.

The draft TAS will also remove one of the significant impediments to adoption of Ind AS since the TASprovide an independent framework for computation of taxable income regardless of the accounting framework adopted by companies (Indian GAAP or Ind AS). The Committee has recommended that transition to Ind AS should be closely monitored and appropriate amendments relating to MinimumAlternate Tax (MAT) should be considered in the future based on these developments. 

Given the complexity around accounting standards and the resulting tax implications, it can be extremely challenging for tax and finance professionals in the corporate sector to assess fully the implications of TAS.

KPMG in India is pleased to announce its “Full-daycourse on Draft Tax Accounting Standards (TAS)”.The program is designed for tax and financial reporting teams to gain an in-depth understanding of requirements of the TAS and evaluate the practical issues that the teams will face in implementation of TAS.

Connect with us

 

Request for proposal

 

Submit