দীর্ঘমেয়াদি চুক্তির ক্ষেত্রে হিসাবরক্ষণ পদ্ধতি

(1) Where a person follows the proper method of accounting for income classified as “income from business”, the income arising from long-term contracts in any income year shall be calculated according to the percentage method of execution. 

(2) The percentage of completion of a long-term contract in a tax year shall be determined by comparing the estimated total contract cost determined at the beginning of the contract with the total allocated cost to the contract prior to the end of that tax year and the cost incurred.

(3) For the purposes of this section,

(a)   “Long-term contract” means a contract for the manufacture, installation, or construction, or the performance of services in respect of every contract related thereto, which is not completed within the year in which the work under the contract commences, however, all other agreements except such agreements shall be terminated within approximately 6 (six) months from the date of commencement of work under the agreement; 

(b) “Percentage of completion method” means the   generally accepted accounting policy under which revenue and expenditure covered by long-term   contracts are recognized at the stage of completion of the revised contract under subsection (2).

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