Purchase of commercial building
This query is : Resolved
22 April 2015
We are a pvt ltd co, and have purchased a factory building from our relatives at a cost of rs 1.75 crores, the value of the property is rs 3.25 crores as per govt valuation we have paid stamp duty on rs 3.25 crores and the property has been registered and transferred in our name.
Now our auditors are saying we have to book income on the diff that is 3.25 cr less 1.75 cr which amount to rs 1.50 cr and pay income tax on it.
Sir as the seller would already be paying tax on capital gains why should the difference be taxable to us as it amounts to double taxation.
Kindly answer in detail as early matter urgent sir
Now our auditors are saying we have to book income on the diff that is 3.25 cr less 1.75 cr which amount to rs 1.50 cr and pay income tax on it.
Sir as the seller would already be paying tax on capital gains why should the difference be taxable to us as it amounts to double taxation.
Kindly answer in detail as early matter urgent sir
22 April 2015
Its not your income, so its not on your part to pay tax. the impact on buyer will only be, the valuation done by govt will become cost of asset.
for more detail refer section 50C of IT act.
for more detail refer section 50C of IT act.
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
- Depreciation of fixed assets- coop housing society in mumbai
- TDS on Consultancy- Non DTAA
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- GST rate and HSN code for sale of racing horses
- Eway bill generation from place other than registeted
- Management System (IMS)
- TDS Return Q1 FY 2026-27
- Condonation . E-Verification of last year return .
- DIN reactivation
- 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
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
