Regarding presentation of Land and WIP building
This query is : Resolved
15 September 2022
Assessee had purchased Land of Rs 5 lacs last financial year which is shown in the Balance Sheet as Land. During current financial year, assessee has started constructing building on that Land which is still WIP. My query is as below:
1) Will Land continue to be remained in the books as it as?
2) Will all the construction related expenses be capitalized and shown under which head in the balance sheet?
Thanks in advance
1) Will Land continue to be remained in the books as it as?
2) Will all the construction related expenses be capitalized and shown under which head in the balance sheet?
Thanks in advance
15 September 2022
1 Land continue to be remained in the books as it as.
2 Show it as building.
2 Show it as building.
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19 September 2022
Thanks for the response sir. Shouldn't we show the building as WIP because building is still in WIP? Also should borewell expenses be also capitalized? Please confirm.
20 September 2022
Yes, show it as capital work in progress.
Yes, capitalise bore well expenses.
Yes, capitalise bore well expenses.
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