19 July 2016
INDIA: Adoption of New Corporate Tax Standards Postponed Until 2017
The adoption of mooted new corporate tax accounting standards has been postponed for a year. The new system – the Income Computation and Disclosure Standards (ICDS) – had been scheduled to be adopted for the 2016-17 Assessment Year (AY).
Following representations from a number of companies concerned that they would not able to implement the new protocols in time, it will now not become a requirement until the AY 2017-18.
Once finally implemented, the ICDS is intended to simplify the method by which the taxable income of corporations is calculated and assessed. It is hoped that this will introduce greater consistency to accounting procedures across India, reducing the scope for disputes and subsequent litigation.