One of my client is a developer and is having an under construction commerical building.
Around 35-40% (approx.) expense has been incurred and some money has been received from potential buyers in the form of advance for purchase of property.
By next year end FY16-17, building shall be completed and all sale agreements shall be executed.
For the FY 15-16, i wish to know whether can client use completed contract/cost method for income tax purposes and transfer all purchases and labour expense to closing wip and advances can be shown under current assets.
so that next year all revenue can be booked and all costs including FY 15-16 purchases and cost in the form of opening stock can be claimed as deduction.
CAclubindia
