construction

This query is : Resolved

chetan (Querist)
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16 July 2011
NATURE OF BUSINESS
Assessee is constructing house and sells to the public.

TOTAL NO OF FLAT UNDER CONSTRUCTION

6 ( SIX )

TOTAL DIRECT EXPS as on 31/03/2011

Rs 22/- lacs

TOTAL INDIRECT EXPS as on 31/03/2011

Rs 9/- lacs

TOTAL SALES OF FLAT

No sales of flat made during the year. But assessee has received advance from customer and no legal documents have been entered into assessee and customer as on 31/03/2011
.

QUESTION :

Whether advance received from customer can be treated as “sale of flat” ?

What should be amount of closing stock to be shown ?

Can we bifurcate total direct exps ( here Rs 22 lacs ) in to total six (6) flat and show this bifurcation into closing stock and ,

Whether Indirect exps can be claimed as business loss and next year be set off against business profit ?

PLEASE GUIDE ME , IT IS URGENT .

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 July 2011 For accounting purpose, AS 7 may be followed.

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