TDR & Land Received in lieu of Construction of Public Utility

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This query is : Resolved

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This discussion clarifies when to recognise revenue from Transferable Development Rights (TDR) and land received as compensation for public utility construction. The consensus is to book both TDR and land revenue upon receipt. Interest on TDR should be recognised on an accrual basis, while capital gains on land sales are recognised at the time of sale, ensuring accurate business profit evaluation.

BALDHA SACHIN

BALDHA SACHIN (Querist)
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01 September 2021 We have received TDR & Land In lieu of Construction of Public Utility, So When to Book TDR revenue and Land Revenue. TDR revenue should be booked at the Time of Receipt of TDR Certificate or at the Time of actual sale of TDR? Land Revenue should be booked at the time of Receipt of Land or at the time of actual sale of Land?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 September 2021 Book TDR revenue and land revenue at the time of receipt.
Recognise interest on TDR on accrual basis and capital gains on sale of land.