17 March 2023
A company (100% export unit) X is holding land ( NA) which is excess and intent to sale or lease to subsidiary company. Subsidiary company also 100% export unit . Question is whether excess land sale or lease ? Implication: (1) Lesser: lease charges earned will be text in income tex which is higher than lessee (2) . On lease charges GST will applicable ? If yes lessee can get set off or refund ? (3) Incase of sale : 3.1 Capital gain earned to lesser company income tax will exempt or tax payable ( land purchase 2021) 3.2 Appx stamp duty and registration charges of sale deed is Rs…….. appx 3.2 Lease period is 9 years. 3.3 Lessee company is going to construct building on that land. 4: Any other direct / indirect expenses
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