Ind AS vs IFRS differences in presentation

Key practical differences accountants must know

For day‑to‑day work, accountants mainly feel Ind AS vs IFRS differences in presentation, judgement, and a few specific areas like real estate, leases, financial instruments, and disclosures.

1. Presentation & Format

Ind AS prescribes specific formats aligned with Companies Act (Schedule III) and prohibits “extraordinary items”, so classification and line‑items are more rigid in practice.

IFRS allows more flexible statement formats (e.g., one or two statements of profit and loss + OCI), so migrating between the two often means re‑mapping and regrouping items.

2. Substance vs Legal Form

IFRS pushes hard on substance over form, so structures that legally avoid control or debt may still be consolidated or treated as liabilities.

Ind AS follows substance too, but is more influenced by Indian legal/regulatory form (e.g., some control and consolidation assessments, certain instruments shaped by local law), so you must check MCA/ICAI guidance and not just copy IFRS practice.

3. Revenue (Ind AS 115 vs IFRS 15)

Model is the same 5‑step control model, but Ind AS adds India‑specific guidance and exceptions (especially for real estate, construction‑type contracts, and multi‑element arrangements), which can shift timing of revenue for developers and EPC companies.

Practically: you may see percentage‑of‑completion vs point‑in‑time differences, and extra disclosure requirements in Indian financials versus overseas IFRS sets.

4. Leases (Ind AS 116 vs IFRS 16)

Both bring almost all leases on balance sheet for lessees (ROU asset + lease liability), but Ind AS 116 includes extra guidance and practical expedients tailored to Indian leasing patterns.

Ratios: leverage, EBITDA, and interest coverage will broadly move the same way, yet some borderline contracts may be treated slightly differently due to Indian regulatory interpretations.

5. Financial Instruments & Fair Value

Framework (Ind AS 109 vs IFRS 9) is aligned, but Ind AS tends to be a bit more conservative on fair value and carries India‑specific rules on classification, impairment, and tax effects.

For banks/NBFCs and NBFC‑like entities, local RBI/SEBI guidance plus Ind AS often mean more detailed ECL and disclosure requirements than a “plain IFRS 9” implementation in some foreign groups.

6. Consolidation & Control

Both require consolidation of subsidiaries, but there are subtle differences in defining control (potential voting rights, protective rights, de‑facto control) that can cause a subsidiary under IFRS to be unconsolidated or differently presented under Ind AS, or vice versa.

In groups with foreign parents, accountants often prepare two versions: one Ind AS set for Indian statutory filing and one IFRS package for group reporting, with reconciliation schedules.

7. Disclosures & Compliance Burden

Ind AS generally demands very detailed disclosures (risk, related parties, reconciliations, transition) driven by MCA/ICAI and Indian regulators.

IFRS disclosures are also heavy, but the exact checklists differ; in practice, Indian statutory FS under Ind AS can be more “form‑driven”, while IFRS packages for MNC parents are more “policy‑driven”.

If you say whether your focus is exams (CA/ACCA), statutory audits, or group reporting for an MNC, a tailored 1‑page “working cheat sheet” of these practical differences can be drafted for your blog or personal use.

Ind AS vs IFRS: Complete Guide for Indian Accountants

 Ind AS vs IFRS

 Ind AS vs IFRS

Ind AS and IFRS follow the same broad principles‑based approach, but Ind AS is IFRS adapted to Indian legal, tax, and regulatory realities, so there are important carve‑outs and extra guidance.

Big Picture

IFRS: Global standards issued by IASB, used (or permitted) in 140+ countries for cross‑border comparability.

Ind AS: Indian Accounting Standards notified by MCA, largely converged with IFRS but modified for Indian law, RBI/SEBI rules, and local practices.

Applicability: Ind AS mandatory for listed and large Indian companies (net worth thresholds), while IFRS applies in many foreign jurisdictions or at group level for foreign parents.

Topic‑wise Differences

1. Revenue Recognition (Ind AS 115 vs IFRS 15)

• Both use the 5‑step model based on transfer of control, but Ind AS 115 has India‑specific guidance, especially for real estate and certain long‑term contracts.
• Differences can arise in how performance obligations are identified and in timing for construction/real‑estate projects.

2. Leases (Ind AS 116 vs IFRS 16)  

• Both bring most leases on balance sheet for lessees (ROU asset + lease liability), but Ind AS 116 includes some additional Indian provisions and practical reliefs.
• Disclosures and certain transitional options may differ slightly due to MCA/ICAI decisions.

3. Financial Instruments (Ind AS 109 vs IFRS 9)

• Classification/measurement categories (amortized cost, FVOCI, FVTPL) and ECL impairment model are aligned.
• Ind AS may have extra disclosures and tweaks for Indian banks/NBFCs and regulatory constraints.

4. Presentation & Disclosures (Ind AS 1, 7, 101 etc.)

• Ind AS prohibits extraordinary items and mandates detailed formats consistent with Companies Act Schedule III.
• IFRS allows more flexibility in format and, while extraordinary items are discouraged, presentation isn't tied to a statutory format.

5. Investment Property & PPE (Ind AS 40, 16 vs IAS 40, IAS 16) 

• Ind AS 40 generally uses the cost model with fair value in notes only, whereas IFRS can use either cost or fair value model in the financials.
• Revaluation of PPE is permitted under both, but Ind AS links useful lives and residual values to Indian guidance (e.g., Schedule II).

6. Convergence & Roadmap (Good background section)  

• Explain the MCA 2015 notification and phased implementation (large/listed companies first) and the objective of better global comparability for Indian companies.

Is Accounting same all over the World

No, accounting is not the same all over the world. Basic principles like double-entry bookkeeping are universal, but standards, regulations, and practices vary significantly by country.

Key Differences

Countries follow different frameworks, such as US GAAP in the United States, which is rules-based and detailed, versus IFRS used in over 140 countries including the EU, India, and Australia, which is principles-based and more flexible. For example, revenue recognition and asset valuation methods differ, with GAAP emphasizing specific rules while IFRS allows more judgment.

Regional Variations

In India, Ind AS aligns closely with IFRS but includes local tweaks for taxation and reporting, differing from the April-March financial year unique to the country. Australia blends IFRS with its own AASB standards, focusing on tax and investor needs, while places like China use CAS with distinct state influences.

Global Convergence

Efforts by bodies like the IASB promote IFRS adoption for multinational consistency, but full uniformity remains elusive due to cultural, legal, and tax factors. Professionals often need qualifications like CPA or CA tailored to local rules.

TDS and TCS in details

 

Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) are both tax collection mechanisms under the Indian Income Tax Act designed to ensure tax is collected efficiently and prevent tax evasion, but they differ fundamentally in their application, responsibility, and timing.

What is TDS (Tax Deducted at Source)?

TDS is an indirect tax where the payer deducts a certain percentage of tax before making a payment to the recipient, and this deducted amount is deposited with the government. It is applicable on various types of payments such as salaries, interest, rent, professional fees, commission, and contract payments. The responsibility to deduct and deposit TDS lies with the payer. TDS is deducted when the payment is due or made, whichever is earlier. The deducted tax is credited to the recipient's tax account and helps in reducing their overall tax liability when filing returns. Common forms used for TDS filings include Form 24Q, 26Q, and 27Q, filed quarterly. The due date for depositing TDS is generally the 7th day of the following month after the deduction.

What is TCS (Tax Collected at Source)?

TCS is a tax collected by the seller from the buyer at the time of the sale of certain specified goods, such as alcohol, timber, scrap metal, minerals, tendu leaves, forest products, automobiles, and toll tickets. The seller collects this tax over and above the sale price and deposits it with the government. The responsibility for collecting and depositing TCS lies with the seller. TCS is collected at the time of sale and credited to the buyer’s tax account, which the buyer can adjust against their tax liability. The return for TCS is filed quarterly in Form 27EQ. The due date to deposit TCS is also the 7th of the next month after collection. TCS helps the government track high-value transactions and avoid tax evasion in certain industries.

Both TDS and TCS help the Indian government ensure tax compliance and prevent black money circulation by collecting tax at different points in the financial flow—TDS at the time of payment and TCS at the time of transaction of certain goods.

Key Differences

Here are the key differences between TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) in points:

Definition:  

  - TDS is tax deducted by the payer before making a payment to the payee.  

  - TCS is tax collected by the seller from the buyer at the time of sale of specified goods.

Applicability:  

  - TDS applies to payments like salary, interest, rent, professional fees, etc.  

  - TCS applies on sale of specified goods like alcohol, minerals, scrap, automobiles, etc.

Responsible Person:  

  - The payer deducts and deposits TDS.  

  - The seller collects and deposits TCS.

Timing of Tax Deduction/Collection:  

  - TDS is deducted when payment is made or due (whichever is earlier).  

  - TCS is collected at the time of sale.

Tax Credit:  

  - TDS is credited to the payee’s tax account.  

  - TCS is credited to the buyer’s tax account.

Return Filing Forms:  

  - TDS returns are filed quarterly using forms like 24Q, 26Q, or 27Q.  

  - TCS returns are filed quarterly using Form 27EQ.

Due Date for Deposit:  

  - Both TDS and TCS must be deposited by the 7th of the following month after deduction/collection.

Purpose:  

  - TDS ensures tax collection at the time of payment to prevent tax evasion on income.  

  - TCS helps track and collect tax on the transaction of specific goods to curb evasion and black money.

These points highlight the fundamental distinctions and operational differences between TDS and TCS systems in India.

TDS Return Forms

The key TDS return forms used for filing Tax Deducted at Source returns in India are:

Form 24Q: Quarterly statement for TDS deducted from salary payments. This form contains details of salaries paid and TDS deducted on them. It is filed by employers.

Form 26Q: Quarterly statement for TDS deducted on payments other than salaries, such as interest, professional fees, rent, commission, etc.

Form 27Q: Quarterly statement for TDS deducted on payments made to non-residents other than salaries. This form covers payments like interest, dividends, and other sums payable to non-resident Indians and foreign companies.

Form 26QB: Statement for TDS deducted on payment related to the purchase of immovable property (sale consideration).

Form 26QC: Challan-cum-statement filed for TDS deducted on rent payments under section 194-IB.

Form 26QD: For TDS deducted under section 194M on payments for works contracts, commission or professional and technical services (introduced more recently).

Form 26QE: For TDS deducted on transactions involving cryptocurrency.

Form 27EQ: This is actually the TCS return form (Tax Collected at Source) filed quarterly by the seller collecting tax on specified goods.

Due dates for filing these quarterly TDS returns are generally:  

- Q1 (April to June) - 31st July  

- Q2 (July to September) - 31st October  

- Q3 (October to December) - 31st January  

- Q4 (January to March) - 31st May  

However, for forms related to property and rent like 26QB and 26QC, the due date is usually within 30 days from the end of the month in which TDS was deducted.

Employers and other deductors must file the appropriate TDS return forms timely to ensure proper credit of TDS to the deductees and to avoid penalties. TDS certificates such as Form 16 (for salary), Form 16A (for other payments), Form 16B (property transactions), and Form 16C (rent) are issued based on these returns.

Common GST Notices and Their Solutions

Receiving a Goods and Services Tax (GST) notice can be unsettling, but it's a common part of the compliance landscape. These notices are issued by tax authorities to address discrepancies, seek clarification, demand payment, or initiate audits. Understanding the different types of notices and how to respond is crucial for GST-registered businesses in India.

Key Principles for Responding to Any GST Notice:

Don't Panic, Act Promptly: Read the notice thoroughly to understand the issue, the relevant section, and the deadline for response. Ignoring a notice can lead to penalties, higher tax demands, and even legal action.

Verify Genuineness: Always check the authenticity of the notice. Most GST notices are issued online through the GST portal. Look for a Document Identification Number (DIN) and verify it on the official GST website.

Understand the Core Issue: Identify the specific discrepancy or non-compliance the notice is addressing. Is it a mismatch in returns, a delayed filing, an ITC claim issue, or something else?

Gather All Supporting Documents: Collect all relevant invoices (sales, purchase), GST returns (GSTR-1, GSTR-3B, GSTR-2A/2B), e-way bills, bank statements, ledger accounts, payment challans, and any other evidence that supports your position.

Draft a Clear and Factual Response: Prepare a detailed, point-by-point reply. Be precise, provide accurate data, and refer to relevant sections of the GST law if applicable. Avoid emotional language.

Submit Online: Most GST notice responses are submitted digitally through the GST portal. Navigate to "Services" > "User Services" > "View Additional Notices/Orders" or "e-Proceedings."

Adhere to Deadlines: Strict adherence to the response deadline is vital. If you need more time, you may request an extension from the concerned officer with a valid reason, but this is not always granted.

Keep Records: Maintain copies of the notice, your response, all submitted documents, and any acknowledgments for future reference.

Consider Professional Help: For complex notices, particularly those involving significant tax demands, audits, or fraud allegations, it is highly advisable to consult a GST professional, Chartered Accountant (CA), or tax advocate.

Common GST Notices and Their Solutions:

Here's a breakdown of common GST notices and how to address them:

1. GSTR-3A (Notice for Non-Filing of Returns)

What it is: Issued when a registered person fails to file a GSTR-1, GSTR-3B, GSTR-4 (for composition dealers), or GSTR-8 (for TCS collectors) within the due date.

Reasons: Overlooked deadline, technical glitches, or genuine non-compliance.

Solution:

• File the pending return(s) immediately: Even if delayed, file the return(s) along with applicable late fees and interest.
• Pay late fees and interest: Calculate and pay the late fees (as per rules) and interest (18% p.a. for delayed tax payment) through Form DRC-03.
• Inform the department: Once filed, the notice will automatically be closed on the portal, but it's good practice to ensure it reflects as complied.

Consequence of non-compliance: If you don't file after this notice, the proper officer may proceed to assess your tax liability based on available information (Best Judgment Assessment) and impose penalties.

2. GST ASMT-10 (Scrutiny Notice for Discrepancies in Returns)

What it is: Issued when the GST officer finds discrepancies in your filed GST returns (GSTR-1, GSTR-3B, GSTR-2A/2B, GSTR-9, GSTR-9C). Common mismatches include:

• GSTR-1 (sales declared) vs. GSTR-3B (tax paid) discrepancies.
• GSTR-3B (ITC claimed) vs. GSTR-2A/2B (ITC available) mismatches.
• Discrepancies with e-way bills.
• Differences between GST returns and Income Tax Returns/financial statements.

Reasons: Errors in data entry, incorrect reporting, omission of transactions, genuine mismatches with supplier data, or intentional misreporting.

Solution:

• Analyze the discrepancies: Carefully review the notice and pinpoint the exact mismatches or issues highlighted.
• Reconcile your records: Compare your books of accounts, invoices, and other documents with the data reported in your GST returns and the data available with the department (2A/2B).
• Prepare a detailed explanation:
• If the discrepancy is genuine (e.g., timing difference, credit note issue, supplier didn't upload invoice), provide a clear, factual explanation with supporting documents.
• If an error on your part is identified (e.g., under-reported sales, over-claimed ITC), accept the discrepancy and pay the differential tax, interest, and penalty (if applicable) through Form DRC-03.
• Submit response in ASMT-11: Upload your explanation and supporting documents on the GST portal within the specified time (usually 30 days).

Consequence of non-compliance: If no satisfactory explanation or payment is made, the officer may proceed with formal demand proceedings (issuing a Show Cause Notice).

3. GST DRC-01 (Show Cause Notice - SCN)

What it is: This is a serious notice, indicating that the department believes you have committed an offense under GST law (e.g., non-payment or short payment of tax, wrong ITC claim, fraudulent activities). It seeks your "show cause" (explanation) as to why a demand for tax, interest, and penalty should not be raised against you. It typically precedes a formal demand order.

Reasons: Significant discrepancies, audits revealing issues, intelligence inputs, or non-response to prior notices.

Solution:

• Understand the allegations: Read the SCN thoroughly to grasp the specific charges, the amount of demand, and the legal sections invoked.
• Gather evidence: Collect all documentary evidence that refutes the allegations or provides a valid explanation for the perceived non-compliance. This could include invoices, bank statements, ledger extracts, contracts, legal opinions, etc.
• Draft a strong, legally sound reply (DRC-06): This is crucial. Your reply should:
• Address each allegation separately.
• Provide factual explanations with supporting evidence.
• Cite relevant GST law provisions, rules, circulars, or even court judgments if applicable.
• Clearly state why the demand should not be confirmed or why a lower penalty should be imposed.
• Request a personal hearing if you believe it's necessary.
• Pre-deposit (if applicable): In some cases, to mitigate interest and penalty, or to get certain benefits in appeals, you might consider making a pre-deposit of the disputed tax amount (or a portion thereof). Pay through DRC-03.
• Submit on GST Portal: File your detailed reply (DRC-06) and all annexures online within the prescribed time (usually 30 days).
• Attend personal hearing: If granted, attend the hearing with your documents and representative (if any) and explain your case.

Consequence of non-compliance: If you fail to reply or provide a satisfactory response, the officer may pass a Demand Order (DRC-07) confirming the demand, interest, and penalty.

4. GST DRC-07 (Demand Order)

What it is: This is the final order issued by the GST officer after considering your reply to an SCN (DRC-01) or if no reply was submitted. It confirms the tax, interest, and penalty payable by you.

Reasons: Unsatisfactory reply to SCN, no reply to SCN, or confirmation of demand based on audit/investigation findings.

Solution:

• Review the order: Carefully examine the order to understand the confirmed demand and the reasoning provided by the officer.
• If you agree: Pay the full amount of tax, interest, and penalty within the specified time (usually 30 days) through the GST portal.
• If you disagree: You have the right to appeal.
• Appeal to the First Appellate Authority (Commissioner Appeals): File an appeal in Form GST APL-01 within three months from the date of communication of the order. You generally need to pre-deposit a certain percentage of the disputed tax (usually 10% of the disputed tax, subject to a maximum).
• Further appeals: If still aggrieved, you can appeal to the Goods and Services Tax Appellate Tribunal (GSTAT) (once constituted) and then to the High Court/Supreme Court.

Consequence of non-compliance: If the demand is not paid or appealed, the department will initiate recovery proceedings (e.g., freezing bank accounts, attaching property).

5. REG-17 (Show Cause Notice for Cancellation of GST Registration)

What it is: Issued when the proper officer intends to cancel your GST registration. Common reasons include:

• Non-filing of returns for a specified period (e.g., 6 consecutive months for regular taxpayers).
• Non-commencement of business within 6 months of registration.
• Fraudulent means of obtaining registration.
• Violation of anti-profiteering provisions.
• Mismatch between ITC claims and tax paid.

Solution:

• Identify the reason: Understand why the department wants to cancel your registration.File pending returns/comply: If the reason is non-filing of returns, file all pending returns and pay any outstanding dues.
• Provide explanation in REG-18: Submit a detailed reply explaining why your registration should not be canceled, along with supporting documents, within 7 working days.
• Attend personal hearing (if called): Present your case clearly.

Consequence of non-compliance: If no satisfactory reply is received, the officer will issue an order for cancellation of registration (REG-19). This means you cannot collect GST, claim ITC, or issue tax invoices, and will face further penalties.

6. REG-23 (Show Cause Notice for Rejection of Revocation of Cancellation)

What it is: Issued if you applied for revocation of your canceled GST registration (REG-21), but the officer intends to reject your application.

 Solution:

• Understand reasons for rejection: The notice will state the reasons why your revocation application is likely to be rejected.
• Submit clarification in REG-24: Provide a detailed explanation, clarification, and any additional documents to address the officer's concerns within 7 working days.
• Attend personal hearing (if called).

Consequence of non-compliance: If the clarification is not satisfactory, your application for revocation will be rejected, and your registration will remain canceled.

7. ADT-01 (Notice for Conduct of Audit)

What it is: Issued to inform you that your business records will be audited by the GST authorities under Section 65.

Solution:

• Cooperate fully: Provide all requested books of accounts, documents, and information to the audit team.
• Be prepared: Ensure your records are well-maintained, reconciled, and easily accessible.
• Clarify doubts: Engage constructively with the audit team to clarify any questions they may have.

Consequence of non-compliance: Non-cooperation can lead to best judgment assessment and severe penalties. Audit findings can lead to demand notices (DRC-01/07).

Always remember that accurate record-keeping and timely compliance are the best ways to avoid GST notices in the first place.