Accounting For Fixed Asset AS -10
This query is : Resolved
CA. Iti Arora
(Querist)
16 February 2010
Please suggest the accounting treatment of Demolition of an old building which was constructed on a Land. The demolition has generated a revenue of Rs. 10 lacs from the sale of scrap in the same year of purchase of land.
Can this scrap value be credited to the cost of land so as to subsequently reduce the cost of Land?
What is the tax implication of this treatment?
The building was entirely useless for the company since it was purchased?
Can this scrap value be credited to the cost of land so as to subsequently reduce the cost of Land?
What is the tax implication of this treatment?
The building was entirely useless for the company since it was purchased?
CMA Ramesh Krishnan
(Expert)
16 February 2010
My view Cost of demolition less revenue generated on that amount(net) need to be added to value of land
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- Oct 2025 Invoices
- EPF ECR NEW RULES Sep 17th 2026
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Taxation of crypto futures in India Fy 2026- 2027
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
