seniors please help me out.............

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priya (Querist)

12 June 2011 please tell me the proper treatment of unrealised rent in case of house property n vat is to be done when dat unrealised rent realised in d same previous year. it shud b deducted from actual rent receivable or we have to less it from gross annual value????????

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)

12 June 2011 WHEN THE RENT IS REALISED IN THE SAME YEAR HOW IT IS UNREALISED IT WILL BE INCLUDED IN RENT RECEIVED

CA MANOJ GUPTA
JODHPUR
09828510543

priya

priya (Querist)

12 June 2011 if it is nt realised in dat year den vat sud be done ????????

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

12 June 2011 1. UNREALISED RENT ITSELF MEANS RENT NOT RECEIVED.
2. SUPPOSE @2000 PER MONTH RENT RECEIVABLE FOR THE YEAR IS 24000/ OUT OF IT -IF RS. 8000/- IS UNREALISED RENT AS PER THE ACT, YOU HAVE TO TAKE ACTUAL RENT AT RS 16000/ -FOR COMPARISON PURPOSE.

3.16000 IS COMPARED WITH THE REASONABLE EXPECTED RENT (RER) (FINALIST AMONG- FAIR RENT, STANDARD RENT, MUNICIPAL).
SUPPOSE RER IS 20,000.

4.OUT OF 2 AND 3 ,... 3 ....THEN RER IS GREATER , RER WILL BE TAKEN AS GROSS ANNUAL VALUE.

priya

priya (Querist)

13 June 2011 in all cases whether the prop is let for whole year or it is vacant for some time,WE HAVE TO DEDUCT the unrealised rent from actual rent receivable??????????fr ex @2000 per mnth the prop is vacant for 3 mnths n the RER is 20000 n unrealised rent rs 6000 den ?????????

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

13 June 2011 Unrealised Rent means for which you were entitled to receive but due to tenants " Badmashi" you could not receive it.
In case of Vacancy, no tenant was available in spite of keeping the property ready for let out.

Students are taught to calculate GAV in a stepwise manner-
1. First Step- to find out RER 20000
2. Second Step- Actual Rent 16000+ VACANCY ALLOWANCE 6000 Total 22000
3. Higher of 1 or 2 = 22000
4. Deduct Vacancy Loss =6000.
5. GAV= (3)-(4) = 16000

You will observe that in 2nd step vacancy allowance has been added . The reason for addition is that - we have to deduct it back in step 4.

priya

priya (Querist)

13 June 2011 sir den vere d unrealised rent gone in dis ques ????????

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

13 June 2011 Unrealised Rent is just like "Bad Debts written off"

"Aapki kismat "sikandar" hogi tabhi Unrealised Rent Realised hoga."

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