construction
This query is : Resolved
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 .
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 .
16 July 2011
For accounting purpose, AS 7 may be followed.
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