Method of Accounting in certain cases: Section 145A
Method of accounting in certain cases (Section 145A)
This section provides treatment of certain items chargeable under the head profits and gains for business or Profession:
Valuation of Inventory shall be made lower of actual cost or Net realizable value computed in accordance with ICDS-II “Valuation of Inventory”
Valuation of purchase and sale of goods or services and of inventory shall be adjusted to include the amount of any taxes, duty, cess, or fees paid or incurred by the assessee to bring the goods or services to the place of its location and condition as on date of valuation.
Inventory being securities not listed or listed but recognized on stock exchange shall be valued at an actual cost in accordance with ICDS-VIII “Securities”
Inventory being listed on a recognized stock exchange shall be valued at lower of actual cost or net realizable value in accordance with notified ICDS-VIII “Securities”. This comparison of actual cost and net realizable value shall be done at category-wise.