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advance received

archana tanna (13 Points)

18 December 2017

advance received in construction business are consider in turn over ?

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4 Replies

CA Shree Jain (Chartered Accountant) (1572 Points)
Replied 18 December 2017

Advance for What Purpose ?

archana tanna (13 Points)
Replied 18 December 2017

flats booking

Manas Das (1431 Points)
Replied 18 December 2017

yes it has to be considered if taken during construction period or token booking advance for flats going to be constructed. except ready to occupy flats

CA Shree Jain (Chartered Accountant) (1572 Points)
Replied 18 December 2017

Advances received against booking of flat are not part of total sales, turnover or gross receipts as the assessee was following Project Completion Method of accounting.

Note : In this case in the submissions made on behalf of the assessee it is at one place stated that the assessee has not sold the flats by executing the documents and the person booking the flat is entitled to cancel the booking and ask for refund of advances given by him.