Cost of land

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2014 An agricultural land having Market Value 27 lakhs and Regis Value 11 Lakhs

at what amount the Land can be shown in books

Only regis amt of 11 lakhs to be paid in chq and remng in cash

what are the tax implication...

can cash amt pid be added to COA.

Rupesh Jain

Rupesh Jain (Expert)

13 August 2014 you have to booked on amount paid to seller and also make the registry for the same amount.

CA UMESH DULAL

CA UMESH DULAL (Expert)

13 August 2014 if it is a part of stock in trade, cost or market value whichever is less.

if it is a part of FA, cost to acquire the land.

CA UMESH DULAL

CA UMESH DULAL (Expert)

13 August 2014 if it is a part of stock in trade, cost or market value whichever is less.

if it is a part of FA, cost to acquire the land.

Querist : Anonymous

Querist : Anonymous (Querist)

14 August 2014 Sir it is a FA.

Amt paid to seller is Rs. 27 lac but the guideline value on which regs is done is around 12 lacs, then remng amt to be paid in cash henceforth whether the amt paid in cash is also to be included in cost of land.

CA UMESH DULAL

CA UMESH DULAL (Expert)

14 August 2014 Cash paid to party is to be added as per accounting principle. But you have done regd for less amount, what is the amount shown in sale agreement.

CA UMESH DULAL

CA UMESH DULAL (Expert)

14 August 2014 Show the regd value as cost of land as you have evaded the stamp duty by showing less amount.
If you show actual amount, you will be in trouble.

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