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
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.
CAclubindia
