Agricultural land
This query is : Resolved
18 February 2012
one assessee has agricultural land in haryana. he converted his agricultural land in commercial land and paid the appropriate fee to the haryana govt for the conversion as per the rules of haryana govt. now what will be the treatment of the fee paid for conversion in the hands of the assessee? will it be included in the cost of the land or revenue expenditure or any other treatment?
thanks in advance
thanks in advance
19 February 2012
It can be added to the cost of the land as cost of improvement.
20 February 2012
sir, u are saying that it "can be" added to the cost of the agricultural land that means there is more options for treatment of the fee paid. pls suggest more options.
is it in the hands of the assessee to treat it on its own way?
is it in the hands of the assessee to treat it on its own way?
20 February 2012
You have rightly got my point.
.
Treatment depends upon the option of the assessee as he retains the land as capital asset or he converts it into the Stock in trade.
.
When such amount of conversion is added to stock in trade it becomes an item of revenue expenditure and may be allowed while computing the business profits.
.
.
Treatment depends upon the option of the assessee as he retains the land as capital asset or he converts it into the Stock in trade.
.
When such amount of conversion is added to stock in trade it becomes an item of revenue expenditure and may be allowed while computing the business profits.
.
21 February 2012
thank you very much sir for your support...
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
- Forgot to update debit note in gst
- Relief Calculation u/s 89 of ITax 1961 in TableA Form10E
- Can we claim ITC in 28%
- Applicability of RCM on Frieght Inward supplies received from un-registered person
- Accounting Policies changes
- Running non ac bus under contract with roadways
- GST ITC on Liquidated damages
- SECTION 194T
- Query Regarding Income Tax Rate on Gain from Transfer of Partnership Stake (LLP Partner)
- Can we issue an invoice today
- ADDITIONAL PLACE OF BUSINESS DOCUMENTS
- Are You Looking For an Easy Academic Help?
- Wrongly goods delivered to other state
- Tds on GST in connection with sale to public company
- B2B Amendment
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- Regarding Advance Tax not claimed in the Return of Income for A.Y. 2025-26
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
