Central Government to prescribe accounting standards
Section 133 of the Companies Act, 2013 deals with central Government to prescribe accounting standards. The Central Government may prescribe the standards of accounting or any addendum thereto, as recommended by the Institute of Chartered Accountants of India, constituted under section 3 of the Chartered Accountants Act, 1949 (38 of 1949), in consultation with and after examination of the recommendati The Act came into force on 01 Apr 2014.
The Central Government may prescribe the standards of accounting or any addendum thereto, as recommended by the Institute of Chartered Accountants of India, constituted under section 3 of the Chartered Accountants Act, 1949 (38 of 1949), in consultation with and after examination of the recommendations made by the National Financial Reporting Authority:
1[Provided that until the National Financial Reporting Authority is constituted under section 132 of the Companies Act, 2013 (18 of 2013), the Central Government may prescribe the standards of accounting or any addendum thereto, as recommended by the Institute of Chartered Accountants of India, constituted under section 3 of the Chartered Accountants Act, 1949 (38 of 1949), in consultation with and after examination of the recommendations made by National Advisory Committee on Accounting Standards constituted under section 210A of the Companies Act, 1956 (1 of 1956).]
Section 133, The Companies Act, 2013 (Act 18 of 2013).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Referred to by 7
- s. 2 Definitions
- s. 52 Application of premiums received on issue of shares
- s. 55 Issue and redemption of preference shares
- s. 66 Reduction of share capital
- s. 129 Financial statement
- s. 230 Power to compromise or make arrangements with creditors and members
- s. 232 Merger and amalgamation of companies
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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C. I. T-vi New Delhi vs Virtual Soft Systems LTD
Court's Decision & Legal Precedent
The Court held that the accounting standards and Guidance Notes recommended by the Institute of Chartered Accountants of India and given statutory recognition through the Companies Act carry legal weight: bifurcating a lease rental into capital recovery and finance income in accordance with the ICAI Guidance Note reflects real income on the substance-over-form principle, and the resulting lease equalisation charge is therefore deductible.
On this section: Establishes that accounting standards recommended by the ICAI and prescribed under the Companies Act are not merely professional guidance but the legally recognised method of presenting a company's accounts, the regime now carried by section 133.
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The Deputy Commissioner of Income Tax vs Prakash Leasing Limited
Court's Decision & Legal Precedent
Following Virtual Soft Systems, the Court held that accounting standards prescribed under the Companies Act, read harmoniously with section 145 of the Income-tax Act, govern the method by which a lessor's finance-lease income is computed, and that an assessee who follows the prescribed standard cannot be denied the lease equalisation deduction.
On this section: Applies the prescribed-accounting-standards regime of the Companies Act, now section 133, as the binding external measure of how a company must state its accounts.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Practices, referred to supra, and the clarification given in the said extracts, to contend that the actionable claim/current assets includes the inventories and trade receivables and the said principle is applicable to the appellant Company, being a registered company under the provisions of the Companies Act. Section 133 of the Companies Act, 2013 which provides that the Central Government would prescribe accounting standards and Section 3(8) of the General Clauses Act, which relevant provision is extracted hereinabove, have been relied upon to substantiate the contention that the appellant Company is an agency or instrumentality of …
Made under this section, and citing it
22 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
- G.S.R 40(E) Companies (Accounts) Amendment Rules, 2023Rule 2023
- G.S.R 408(E) Companies accounts second amendment rules 2023 dated 31.05.2023Rule 2023
- G.S.R NO. 242(E) Companies Indian Accounting Standards Amendment Rules 2023 dated 31.03.2023Rule 2023
- G.S.R. NO. 235 (E) Companies (Accounts) Second Amendment Rules, 2022 dated 31.03.2022Rule 2023
- Companies (Indian Accounting Standards) Amendment Rules, 2022.Rule 2022
- Companies Accounts Amendment Rules 2022Rule 2022
- G.S.R 407(E) Companies (Accounts) Third Amendment Rules, 2022 dated 31.05.2022Rule 2022
- G.S.R NO. 255(E) Companies (Accounts) Second Amendment Rules, 2022 dated 23.03.2022Rule 2022
- Companies (Accounting Standards) Rules, 2021Rule 2021
- Companies (Indian Accounting Standards) Amendment Rules, 2021.Rule 2021
- Companies (Indian Accounting Standards) Amendment Rules, 2019Rule 2019
- Companies (Indian Accounting Standards) Second Amendment Rules, 2019Rule 2019
- Companies (Accounts) Amendment Rules, 2018Rule 2018
- Companies (Indian Accounting Standards) Amendment Rules, 2018Rule 2018
- Companies (Indian Accounting Standards) Second Amendment Rules,2018Rule 2018
- Companies (Accounts) Amendment Rules, 2017.Rule 2017
- Companies (Indian Accounting Standards) (Amendment) Rules, 2017Rule 2017
- Companies (Accounts) Amendment Rules, 2016Rule 2016
- Companies (Removal of Difficulties) 2nd Order, 2016Order 2016
- Companies (Accounts) Second Amendment Rules, 2015Rule 2015
- Chapter IX - The Companies (Accounts) Rules, 2014.Rule 2014
- The Companies (Accounts) Amendment Rules, 2014Rule 2014
Another 4 instruments name this provision in its title or its text without being made under it.
- the Investor Education and Protection Fund Authority (Form of Annual Statement of Accounts) Rules, 2018 and the Investor Education and Protection Fund Authority (Form and Time of Preparation of Annual Report) Rules, 2018.Rule 2018
- Companies (Compromises, Arrangements and Amalgamations) Rules, 2016Rule 2016
- NCLT (Procedure for reduction of share capital of company) Rules, 2016Rule 2016
- Clarification on the notification dated 12.9.2013.Circular 2013
Questions about Section 133
What have the courts held on Section 133 of the Companies Act?
C. I. T-vi New Delhi vs Virtual Soft Systems LTD is the leading judgment on this section among those set out below: Establishes that accounting standards recommended by the ICAI and prescribed under the Companies Act are not merely professional guidance but the legally recognised method of presenting a company's accounts, the regime now carried by section 133. Another 1 judgment on this section is set out below, all of them from the Supreme Court.
How do I find court cases under Section 133 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 133, section 133 Companies Act, section 133 of the Companies Act. People searching for it also type company act 133a and companies act 2013 section 133. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with C. I. T-vi New Delhi vs Virtual Soft Systems LTD.
What should I read with Section 133 of the Companies Act, and has it changed?
Its own text turns on Chartered Accountants Act 3 (Incorporation of the Institute), section 132 (Constitution of National Financial Reporting Authority), so none of them can safely be read on its own. 7 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 22: most recently G.S.R 40(E) Companies (Accounts) Amendment Rules, 2023 (2023), then G.S.R 408(E) Companies accounts second amendment rules 2023 dated 31.05.2023 (2023), and 20 more.
When did Section 133 of the Companies Act come into force?
Section 133 of the Companies Act, cited as Companies Act 133, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.