Treatment of revenue generated during project implementation
This query is : Resolved
21 September 2012
Hi,
We are a Pvt. Ltd. Co. engaged in generation electricity by wind. The company was incorporated to set up 50 MW power plant. In the process the company acquired the exiting 10 MW wind farms and balance wind farms are to be procured and installed.
The COD of 50% of proposed project was completed as at the end of the financial year.
In the process of implementation of the project and acquisition of exiting plant, the company generated revenue by sale of power and used for project implementation, thereby reduced the borrowings.
Question: Whether the revenue generated during the implementation amounts to reduction in pre-operative expenses / project expenses or revenue liable for tax.
We are a Pvt. Ltd. Co. engaged in generation electricity by wind. The company was incorporated to set up 50 MW power plant. In the process the company acquired the exiting 10 MW wind farms and balance wind farms are to be procured and installed.
The COD of 50% of proposed project was completed as at the end of the financial year.
In the process of implementation of the project and acquisition of exiting plant, the company generated revenue by sale of power and used for project implementation, thereby reduced the borrowings.
Question: Whether the revenue generated during the implementation amounts to reduction in pre-operative expenses / project expenses or revenue liable for tax.
21 September 2012
the said revenue needs to be offerred to income tax.(Since yours is a pvt ltd company, no commencement of business is required)
Message likes :
1 times
09 October 2012
this has to be netted off from project expenses, reducing your overall project cost. same thing happened in our case a solar power company and one of the big 4 audit firm was on this opinion.
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
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Price inclusive or exclusive of GST while made entry in P& L Account
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Minimum tax payable to file Updated return
- Change Of Karta In Case of Death
- GST Intimation due to Government took possession of Business Premises under PPE Act
- Tax rate change regarding
- UDIN ISSUE
- TDS on purchase of under construction property from a reseller
- Non filing of I T Returns
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
