AS-7- Accounting for Construction contracts

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CA. Jyoti Baid (Querist)
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14 March 2009 Hello sir,

I wanted to know the applicability of AS-7 in the following case:

An individual has given his property to a company to develop and build residential flats. In exchange the individual will get 3 flats. So, is AS-7 is applicable on the company.
Please help.

Regards,
Jyoti

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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14 March 2009 ya its applicable to the company.

alok raman

alok raman (Expert)
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14 March 2009 EXCEPT THE EXCLUDED CONTRACTS LIKE FOREST AND REGENERATIVE PRODUCTS IT IS APPLICABLE TO EVERY CONTRACT

CA. Jyoti Baid

CA. Jyoti Baid (Querist)
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16 March 2009 Thank you for the reply.

I wanted to add here that I have read in the book D.S.Rawat that AS-7 is not applicable on the persons who are builing residential flats for selling them to general public.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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18 March 2009 if there is contractor contractee relationship than its applicable.

when the contractor himself is undertaking the project and selling it to public than its not applicable as there is no contractor contractee relationship.

CA. Jyoti Baid

CA. Jyoti Baid (Querist)
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24 March 2009 So is As-2 applicale on this company

CA. Jyoti Baid

CA. Jyoti Baid (Querist)
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02 June 2009 .

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