Property purchased by a realty company
This query is : Resolved
yogesh.kulkarni
(Querist)
04 December 2010
Hi Experts,
A real estate company has purchased a property and let out the same on a rental basis.
However, it has accounted the same as a Fixed Asset and claimed depreciation.
I am of the opinion that the same should be shown as an Investment.
Kindly provide your inputs to the said matter.
A real estate company has purchased a property and let out the same on a rental basis.
However, it has accounted the same as a Fixed Asset and claimed depreciation.
I am of the opinion that the same should be shown as an Investment.
Kindly provide your inputs to the said matter.
04 December 2010
As the company engaged in the real state business so plz refer the object clause of the memorandum of association , if there mentioned .
If in the same it has been mentioned that company will be engaged in the purchase of building and flats and whatever the name called and will resale it or let out or of the same nature .
than it will not be taken as investment ,it will be treated as a fixed asset for the company .
If you take it as investment than rent will be treated as income from other sources
It is my opinion -
As the company engaged in the real state business so plz refer the object clause of the memorandum of association , if there mentioned .
If in the same it has been mentioned that company will be engaged in the purchase of building and flats and whatever the name called and will resale it or let out or of the same nature .
than it will not be taken as investment ,it will be treated as a fixed asset for the company .
If you take it as investment than rent will be treated as income from other sources
It is my opinion -
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
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- SALARY CAN BE CAPITALIZE
- TDS on purchase of under construction property from a reseller
- GST Intimation due to Government took possession of Business Premises under PPE Act
- TDS on Fixed Assets purchased
- Non filing of I T Returns
- UDIN ISSUE
- GST on Renting godown to KFCSC for Storage of Raagi
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
