MEIS SEIS REVENUE RECOGNITION

[ravi parihar]

Dear Sir,

My question is related to revenue recognition of MEIS SEIS taxation from income tax point of view and accounting standard.

Revenue will be recognize at the time of credit of scrip or sale of scrip ?

ICDS silent about this and AS 9 says export incentive recognise only when there is certainity .

Kindly reply.

Thanks in advance.

AI Summary

Revenue recognition for export incentives: timing hinges on certainty under accounting standards, not automatic on scrip credit.
Revenue recognition of export incentive scrips under MEIS/SEIS: whether income is recognised on crediting of the scrip or upon sale is central. AS 9 requires recognition only when reasonable certainty of collection exists. ICDS is silent on this issue, so accounting standards and tax principles guide timing of recognition.