Sample Disclosure for ICDS un 3CD Report–

Applicable for FY 2016-17

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Sample Disclosure for ICDS Income Tax– Applicable for FY 2016-17

ICDS I – ACCOUNTING POLICIES

Check Points Points to be fed in 13(f)

1. All significant accounting policies Financial Mercantile method of

adopted by a person. Statements accounting employed.
Expenses and Income
are accounted for on
accrual basis as per
generally accepted
accounting principles in
India

2. Any change in an accounting policy 3CD – Clause 13 Applicable only if some

which has a material effect shall be (b), (c) change is there
disclosed. The amount by which
any item is affected by such
change shall also be disclosed to
the extent ascertainable. Where
such amount is not ascertainable,
wholly or in part, the fact shall be
indicated. If a change is made in
the accounting policies which has
no material effect for the current
previous year but which is
reasonably expected to have a
material
effect in later previous years, the
fact of such change shall be
appropriately disclosed in the
previous year in which the change
is adopted and also in the previous
year in which such change has
material effect for the first time.

ICDS II – VALUATION OF INVENTORIES

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1. The accounting policies adopted in 3CD – Clause As per Cost or NRV
measuring inventories including the 14 (a) whichever is lower on
cost formulae used. Where Specific Identification
Standard Costing has been used method/Weighted
as a measurement of cost, details Average/ First In First
of such inventories and a Out valued as per
confirmation of the fact that Standard Cost/Retail
standard cost approximates the Method
actual cost.
Inventory has been
valued as per exclusive
method however

2. The total carrying amount of 3CD – Clause 35 Total amount of

inventories and its classification inventory with
appropriate to a person. bifurcation
· Raw Material

· WIP

· Finished Goods

· Spares

(Clause of financial
statement may also be
referred )

ICDS III – CONSTRUCTION CONTRACTS

1. · The amount of contract Management · Total Amount

revenue recognised as revenue in certificate recognized as contract
the period; and revenue in the current
· the methods used to determine financial year is Rs
the stage of completion of XX,xxx
contracts in progress. · Proportion of contract
cost with respect to
estimated contract
cost method/surveys
of work performed
method/physical
proportion method
has been used for
calculation of
percentage of
completion

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2. A person shall disclose the Each contract Amount to be shown
following for contracts in progress needs to be
at the reporting date, looked upon.
namely:— Advance as on
BS to be
· amount of costs incurred and reported
recognized profits less recognized
losses up to the reporting date;

· the amount of advances

received; and

· the amount of retentions.

ICDS IV – REVENUE RECOGNITION

1. In a transaction involving sale of Scrutiny Not Applicable/The Rs

good, total amount not recognised XX,xx amount was not
as revenue during the previous recognized due to lack
year due to lack of reasonably of reasonable certainty
certainty of its ultimate collection
along with nature of uncertainty.

2. The amount of revenue from Scrutiny Amount to be shown

service transactions recognised as Each contract
revenue during the previous year. needs to be
looked upon.
3. The method used to determine the Advance as on Proportion of contract
stage of completion of service BS to be cost with respect to
transactions in progress. reported estimated contract
cost method/surveys
of work performed
method/physical
proportion method
has been used for
calculation of
percentage of
completion

4. For service transactions in

progress at the end of previous
year
· amount of costs incurred and
recognised profits less recognised
losses upto end of previous year;

· the amount of advances

received; and

· the amount of retentions.

ICDS V – TANGIBLE FIXED ASSETS

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1. Description of asset or block of 3CD – Clause 18 As per clause 18 of Tax
assets audit report

2. Rate of depreciation

3. Actual cost or written down value,

as the case may be

4. Additions or deductions during the

year with dates; in the case of any
addition of an asset, date put to
use; including adjustments on
account of—
· Central Value Added Tax credit
claimed and allowed under the
CENVAT Credit Rules, 2004;

· change in rate of exchange of

currency;

· subsidy or grant or
reimbursement, by whatever name
called

5. Depreciation allowable

6. Written down value at the end of

year

ICDS VII – GOVERNMENT GRANTS

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1. Nature and extent of Government Scrutiny
grants recognised during the Particulars Amount
previous year by way of deduction
from the actual cost of the asset or Total
assets or from the written down amount of
value of block of assets during the Grants
previous year.
For FA –
2. Nature and extent of Government As per Profit & recognized
grants recognised during the Loss Account as
previous year as income. deduction
from FA
3. Nature and extent of Government MRL, Fixed
grants not recognised during the asset For FA –
previous year by way of deduction register/schedule not
from the actual cost of the asset or and grants recognised
assets or from the written down received as
value of block of assets and deduction
reasons thereof. from FA
4. Nature and extent of Government MRL & check Other than
grants not recognised during the grants received FA –
previous year as income and from financial recognised
reasons thereof. as income

Other than
FA – not
recognised
as income

ICDS IX – BORROWING COSTS

1. The accounting policy adopted for Scrutiny · In case of specific

borrowing costs. borrowing, actual
borrowing cost has
been capitalized on that
asset
· In case of general
borrowing, borrowing
cost is being capitalized
as per Para 6 of ICDS
IX.

2. The amount of borrowing costs Financials Amount needs to be

capitalised during the previous disclosed
year.

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 ICDS X – PROVISIONS, CONTINGENT ASSETS AND
CONTINGENT LIABILITIES

1. A brief description of the nature of

the obligation. Particulars Amount
The carrying amount at the (with
beginning and end of the previous description)
year.
Opening
Additional provisions made during Balance of
the previous year, including provisions
increases to existing provisions.
Add:
Amounts used, that is incurred and Provision
charged against the provision,
Made
during the previous year. during the
Unused amounts reversed during year
the previous year.
Less:
Amount
6. The amount of any expected charges
reimbursement, stating the amount against
of any asset that has been provision
recognised for that expected
reimbursement. Less :
Amount
reversed
during
previous
years

Closing
balance

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 7. Following disclosure shall be made
in respect of each class of asset Particulars Amount
and related income recognised as (with
provided in para 11, namely:— description)
· a brief description of the
nature of the asset and related Opening
income; Balance
· the carrying amount of asset Add:
at the beginning and end of the amount
previous year; added
during the
· additional amount of asset year
and related income recognised
during the year, including increases Less:
to assets and related income Income
already recognised; and received
against
· amount of asset and related
asset
income reversed during the
previous year. Less :
Amount
reversed
during
previous
years

Closing
balance

Notes in case Income is being taxed on accrual basis irrespective of fact ICDS guides
otherwise. For e.g. retention money, Interest on accrual etc.

Taxpayer has adopted a position that retention money/interest income on non-

performing asset /xxxx is not to be recognized as revenue since it does not become
“due” to the taxpayer in absence of accrual conditions as per Section 5 being met.
Reliance has been placed on judicial precedents like E.D. Sassoon & Co. Ltd. v CIT
(1954) 26 ITR 27 (SC), CIT v Excel Industries Limited (2013) 358 ITR 295 (SC)
and XXXXx. Accordingly, the total taxable income does not include the amount of
said retention money/interest income on non-performing asset.

If any clause is not applicable, rather than leaving it blank. “Not applicable” should be
written.
Appropriate management representation letter should be obtained from assesse.
Disclosures needs to be suitable modified as per specific requirements

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