Max Payne (employed) (2569 Points)
19 January 2010Dear Friends
1. In case of real estate company/property developers, are we allowed to compute the income on POCM basis for income tax purpose?
2. Is a different method there for arriving the amount recognised as notional profit or ETP in tax purpose, or can we take the recognition methods we are using in Contract costing (lesson of PCC)?
3. Any other points to consider?
Please provide case law or any notification/clarification of dept to support.
Many thanks in advance.
Sunil Liladhar Kotak
(Manager (F & A))
(2025 Points)
Replied 20 January 2010
dear
pls refer the AS on construction contracts for better understanding as various things are to be taken care while deciding on this issues
sunil
Max Payne
(employed)
(2569 Points)
Replied 20 January 2010
Dear Snil,
i am asking whether in Income tax act, AS-7 can be accepted.....
Also should any other method to be followed for revenue recognition other than POCM... cos AS-7 is not showing this percentage no... its only saying POCM should be used... So what is the accepted practice of accounting as far as tax is concerned?
CAclubindia
