A company acuired land and got its possession fin FY2005-2006 and currently company is using it for official purposes
Later on in FY2014-15 to government enhanced the rates and demamded enhanced compensation from the company.
Such enhanced compensation can be paid as one time payment or can be paid in installments along with interest thereon.
Doubt is that if company opts for payment for such enhanced compensation in installments , can the company capitalise in its land cost such interest paid on installments or such interest payment shall be treated as Revenue Expenditure??
CAclubindia
