Input credit on land premium (instalment) allowed or not.
This query is : Resolved
21 January 2019
Dear Sir/Madam,
A company purchase a land from industrial area development authority (govt. Dept..) for 30 year leased.
Leased contract period is 30 year
Premium land price is 1,00,00,000/- payment term 10 equal half yearly instalment payable in spread of 5 Year (with applicable GST) Rs. 10,00,000*10.
Date of Land Allotment :- 24/04/2018.
now they raised Tax invoice instalment plus GST @ 18%.
I go through with block credit Sec 17(5). no where Ineligible such credit.
my question is that can we take input on leased instalment payment.
A company purchase a land from industrial area development authority (govt. Dept..) for 30 year leased.
Leased contract period is 30 year
Premium land price is 1,00,00,000/- payment term 10 equal half yearly instalment payable in spread of 5 Year (with applicable GST) Rs. 10,00,000*10.
Date of Land Allotment :- 24/04/2018.
now they raised Tax invoice instalment plus GST @ 18%.
I go through with block credit Sec 17(5). no where Ineligible such credit.
my question is that can we take input on leased instalment payment.
22 January 2019
yes you are right, you can take the credit of the lease rent.
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23 January 2019
Thanks Annop Sir,
but few professionals says that if you treat Land under Fixed Assets than GST input not Allowed as immovable property comes under 17(5).kindly elaborate your opinion.
sir what is the accounting treatment of such type of leased land property ? whether company treated expenses or Fixed Assets.
Please explain !
but few professionals says that if you treat Land under Fixed Assets than GST input not Allowed as immovable property comes under 17(5).kindly elaborate your opinion.
sir what is the accounting treatment of such type of leased land property ? whether company treated expenses or Fixed Assets.
Please explain !
23 January 2019
what will be the accounting treatment and accounting entry for leased land and amortisation of leased rent.
where disclosed in financial report ???
where disclosed in financial report ???
19 October 2021
It is on lease not purchased, and rent is paid over it annually, so ITC can be claimed.
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