Treatment of trasaction
This query is : Resolved
25 May 2009
Hi sir
In the previous year ending 31.03.2008 we had purchased Land 8 lakhs for setting up of business in other state, The same showed in balance sheet under fixed assets as Land. In the current year we made payment to contractor around 7 lakhs for construction of buildings. He given a bill containing, details of materials/labours/expenses--ete towards our payment. My question is What is the treatment of payment towards construction for building under income tax or shall we take it as Expenses, If Expenses which head of expenses we have to show in balance sheet
In the previous year ending 31.03.2008 we had purchased Land 8 lakhs for setting up of business in other state, The same showed in balance sheet under fixed assets as Land. In the current year we made payment to contractor around 7 lakhs for construction of buildings. He given a bill containing, details of materials/labours/expenses--ete towards our payment. My question is What is the treatment of payment towards construction for building under income tax or shall we take it as Expenses, If Expenses which head of expenses we have to show in balance sheet
25 May 2009
You can show the same under "capital work in progress" or " construction-building" till the completion of building.
all the expenses will be capitalised
all the expenses will be capitalised
25 May 2009
The expenditure on the construction of the Building should be capitalised as the benefit of the asset is going to be taken for more than one year. Accordingly an asset as "Buildings" will appear in the Balance sheet on which you can claim depreciation.
25 May 2009
how to capitalise after completing of building.
25 May 2009
You should just debit the expenses Under the Head "Building under Construction".After completion of building transfer the whole amount in Buiilding and start to claim Depreciation.
25 May 2009
You should just debit the expenses Under the Head "Building under Construction".After completion of building transfer the whole amount in Building and start to claim Depreciation.
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
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- Itr 1 processing
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR returnFY25-26
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
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
