Black Money ?

Dear Mr. balamanikandan

Government can not ask any person to sell his property on so  & so price.

it is Flat owner's wish & right to ask for any price of that flat he wants.

if you are not intrested to pay him 5 Lakh extra. better u leave the idea to buy that particular flat.

this is my personal opinion & i think is right also.

i dont think ICAI has any role in this issue

Thanks

PRaveen

Forensic accouinting can be used by an auditor to helop avoiding bklack money besides auditing....

currently there is as such no auditing or accounting standards which help avoiding the flow of black money as these standards only emphasizes upon materiality or to some extent fraud/error alongwith inherent risks.....but these are not sufficient for a proer control over black money......for all these we will see a forensic accounting(FA) boom sonn as ICAI is giving due consideration to FA specially after Satyam's scam....

and in your query it is the qowner who has to ultimately decide at what price he wants to sell his house there is nothin to do with gov./municipal value....(exxept to some extent for taxation of capital gain purposes)

the extra Rs.5 lakhs is not a black mopney but the amount whioch the owner thinks appropriate for its house/building/superstructure.....and there is nothjin to special with its acounting treatment.....if the owner sells the huse at Rs. 25lakhs then it wil be fully treated as sales consideration and nothng will be deemed as flow of black money.....(being prima facie no black money involved in actual)!!!

thanks for yr reply mr .praveen kumar  & anuraag sharma...

after you gave some reply i ahve some questions .....

we have government rate for selling the flat ........that is Rs. per sq.ft ..........if the 5 lakh rupees we are giving beans they are asking that amt in cash ya then how we could record that amt .......that is in contract we have 20 lakhs but we pay him 25 lakh then 5 lakh is black money only know my friends ............

in such case you can't record the excess rs. 5 lakhs....and i don't think so that you can control such a practice atleast in present era......as because prima facie it is valid.....as evidence is showing the actual amount as reported by govt./govt. agencies....

and yeah as an auditor you are not required to go beyond what is seeing prima facie, in a good audit evidence....but aas mr. anuraag has pointed out earlier about forensic accouinting, if you are doing as forensuic accountant then you have to ask the source from where the excess Rs. 5 lakhs has been paid????

what is forensic accounting ? ......please tell me .

thanks for yr reply ...............

with regards,

S.Balamanikandan.B.com