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Transfer of land

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This query is : Resolved

Vinod Joshi (Querist)
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05 June 2010 friends i am an accountant of a real estate comp with share cap one lakh and cash bal one lakh my company was incorporated in the year 2003 but was defunct till sep 2009 later regularised and now opened the bank a/c in the name of company director funded and completed the land developement and sale of plot is also in procee but in our books no land we want to bring land in the company books belonging to the director what is the accounting and tax impact

Rasesh

Rasesh (Expert)
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06 June 2010 If the company has only developed the land without purchasing land, then show a land development agreement between the land owner and the company.

The company will sell flats and receive a fix portion of the consideration. The balance will be passed on to the land owner who will pay capital gain tax. The company will pay tax on the business profits.

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