SCENARIO : Cooperative Housing Society AND Cooperative Housing Society B decide to buy a common usage water submersible pump at a cost of Rs 1,58,000 from a buyer. The deal was executed and the asset was delivered and installed. Society A paid a sum of Rs 1,58,000 against the bill raised on its name.
Society B paid its share of Rs 79,000 to Society A and the deal was completed
QUESTIONNAIRE :
How and in whose books will the asset be capitalized .
SUGGESTIONS :
- If the asset is capitalized in the books of A at Full Value the amount received from Society B has to be treated as a loan just like any other mode of financing.
- The asset is capitalized in the books of A at 50% value
- Asset is capitalized in the books of A at full value and amount received from B is treated as Income and taxed as no MUTUALITY is involved here.
- Get split bills from the supplier – An attempt which did not materialize
REQUEST :
BEST AND CORRECT OPTION OUT OF THE 3 SUGGESTIONS AS ABOVE SO AS NOT TO INVITE
ISSUES WITH THE REGISTRAR OF COOPERATIVE SOCIETIES.
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