26 August 2014
ABC Co a builder has taken land from Mr X in collaboration. ABC co. is building residential complex. ABC Co. will give two flat to Mr X in consideration of land and remaining flats are being sold by abc company to customers. what will be the accounting and taxation treatment for above transaction. Please suggest.
27 August 2014
The estimated cost of those two flats given to Mr. X will be taken as cost of land rights. This cost is charged off to P&L over the period of sale of flats under the share of ABC Co.
CAclubindia
