Accounting treatment for construction partnership firm
This query is : Resolved
26 February 2014
The assessee and his friend purchased 2 plots in 2010 & 2012, respectively and started a Partnership Firm for Construction on said plots. In 2013 the construction is completed and they sell the 24 flats constructed on the said plots. Now how accounting is made for said transaction? How profits should be booked and Is there any Capital gain involve after sale of Flats?
26 February 2014
there can be either capital gain or business income. If intention is to further carry on the same business then treat it as business income otherwise compute capital gain.
26 February 2014
if it was construction business then business income shall be computed.
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