Recognition of construction charges
This query is : Resolved
25 June 2015
A Contractee has paid Advance to contractor for building residential complex. But bill is not raised by the contractor. Now my question is how to recognize construction charges in the books of contractee ? whether it would be recorded as an when the bill is raised by contractor or on proportionate completion basis as per AS 7 ? Also how to recognize it for Income tax Purpose ?
30 June 2015
UNLESS THE WORK COMPLETED YOU CANNOT AVAIL DEPRECIATION.
HOWEVER, FOR ACCOUNTING PURPOSE THE SAME AMOUNT AS PER AS-7 CAN BE RECOGNISED BY DEBITING CAPITAL WORK IN PROGRESS AND CREDITING THE CONTRACTOR.
HOWEVER, FOR ACCOUNTING PURPOSE THE SAME AMOUNT AS PER AS-7 CAN BE RECOGNISED BY DEBITING CAPITAL WORK IN PROGRESS AND CREDITING THE CONTRACTOR.
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
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Tax on Deemed Capital Gain
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- Type of Capital Gain
- Booth for sales promotion
- Regarding ITR filing with more value than showing in AIS/TIS
- F & O PROFIT REPORTING FOR AY 2026-27
- Difff in ais receipts and gst turnover
- ITR-3 File/Error Found
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
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
