Hari Prasad (Sr Executive) (29 Points)
19 April 2012
An individual Purchased 10 Acres of land and made some developments and sold as a 300 Sites. He given entire development work to a contractor.
1.How to Account in the books of individual?
2.Any tax will be applicable development work given to contractor?
3.for purchase and sale of land any tax will be applicable
praveen
(Chartered Accountant)
(6971 Points)
Replied 19 April 2012
In your case it will be treated like business.
Purchase of land is like making purchase of goods
Sale of sites is sale of a Finished product
In the meanwhile all expenses related to conversion of land into sites can be availed as deduction.
If a contractor is taking care of this process then TDS has to be paid
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