Construction on plot of land by a pvt ltd company
This query is : Resolved
21 January 2019
Suppose a Pvt Ltd company has a plot of land which was purchased for Rs 50 Lakhs few years back. Now the company started the construction on the same plot of land and completed the same in the said year (Total construction cost is Rs 70 Lakhs). Should the company show this in the books as:
1) Land & Building for 120 Lakhs or
2) Both asset as separate asset ( Land = 50 Lakhs and Building = 70 lakhs )
Also advice if second alternative is adopted depreciation is to be charged at 70 lakhs only?
Please advice the treatment from both income tax and company law perspective.
1) Land & Building for 120 Lakhs or
2) Both asset as separate asset ( Land = 50 Lakhs and Building = 70 lakhs )
Also advice if second alternative is adopted depreciation is to be charged at 70 lakhs only?
Please advice the treatment from both income tax and company law perspective.
21 January 2019
Show Both asset as separate asset ( Land = 50 Lakhs and Building = 70 lakhs ) and depreciation is to be charged on 70 lakhs only.
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
- Capital gains-24.06.2025
- Clarification on Old to new regime - 10-IEA
- MP Minimum Wages Act
- FNO transaction not reflecting AIS
- Return forms related
- Imps payment related
- Regarding to Gift Received from relatives
- STCG on equity shares/ETF-24.06.2025
- Can ITR 4 be used for reporting LTCG - FY24-25
- RODTEP Annual Return
- AIS reflecting Aggregate interest on kvp, not accrued .
- PTEC Name Change
- GSTR 1 filled with 40 lakh tax liability but GST 3B filed with nil taxable value
- Regarding Interest on Enhanced Compensation
- Whether in Notes to accounts shown as
- New GST Registration with 02 company
- In elgible ITC claimed in FY 2021-22 & 2022-23 is it to be paid through DRC03 or to reverse it
- Rent agreement prior to incorporating a Company
- REGARDING CAPITAL CONTRIBUTION BY PARTNER
- ITC 04 for Job work
Trending Online Classes
-
Live Course on EPF & ESI Act - Mastercourse(With Govt Certificate)
Mr.Balamurugan Ranganathan16 June 2025
CAclubindia
