Treatment of expenditure on leased land
This query is : Resolved
10 November 2011
Hi,
Our co. has taken a land on lease for 12 years. Co. has incurred Rs. 5 lakhs approx on the filling of land and other land improvement cost. Apart from the above monthly lease rent of Rs. 30000/- is also being paid by the co. What should be the treatment of above expenditure of Rs. 5 lakhs? Whether this should be taken as fixed asset in the books of account or shall be written off over the lease period. If it is to be written off please tell that the balance portion shall be presented under which head in the balance sheet?
Looking forward to an early reply from all.
Our co. has taken a land on lease for 12 years. Co. has incurred Rs. 5 lakhs approx on the filling of land and other land improvement cost. Apart from the above monthly lease rent of Rs. 30000/- is also being paid by the co. What should be the treatment of above expenditure of Rs. 5 lakhs? Whether this should be taken as fixed asset in the books of account or shall be written off over the lease period. If it is to be written off please tell that the balance portion shall be presented under which head in the balance sheet?
Looking forward to an early reply from all.
12 November 2011
AMIT,
RS 5 LAC SHOULD BE WRITTEN OFF WITH THE COST OF LEASE LAND WITH IN 12 YEARS.
AND IT SHOULD BE SHOWN IN BALANCE SHEET UNDER FIXIED ASSETS WITH LESS VALUE.
RS 5 LAC SHOULD BE WRITTEN OFF WITH THE COST OF LEASE LAND WITH IN 12 YEARS.
AND IT SHOULD BE SHOWN IN BALANCE SHEET UNDER FIXIED ASSETS WITH LESS VALUE.
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
- GSTR-1A How to update Invoice
- Excess salary payment.
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- TDS on Purchase of Immovable Property by NRI from NRI
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Regarding TDS Applicability For Director Remuneration
- Annual return in Gst
- Value of property in capital gain
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
