Apartment owners association accouting
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 April 2013
Dear experts
What is the accounting treatment for "Apartment Owners welfare Association".
The association will collect the money from Apartment owners and spends for Water Charges, E.city Charges and Other Maintenance charges.
At the end of the year they may have the surplus amount, is that amount is taxable ?
(P & L Account or Income and Expenditure Account)
And they are having Savings account on association Name they and they are receiving bank interest for that,what is the Tax Rate for that Interest portion.
Kindly help.
What is the accounting treatment for "Apartment Owners welfare Association".
The association will collect the money from Apartment owners and spends for Water Charges, E.city Charges and Other Maintenance charges.
At the end of the year they may have the surplus amount, is that amount is taxable ?
(P & L Account or Income and Expenditure Account)
And they are having Savings account on association Name they and they are receiving bank interest for that,what is the Tax Rate for that Interest portion.
Kindly help.
31 May 2013
In this case the law of mutuality will apply and accordingly you have to raise the bills under various heads such as Corporation tax, electric, water, Maintenance, etc. and the amount spent under various heads to be debited when paid or on accrual basis. Both are to be accounted for in the P & L A/c. In case you receive premium on transfer of flats then the amount may be treated as capital receipt
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
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
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
