I am an individual assesses
*Regular tax payer and filing return of income.
*Following accrual method of accounting to arrive my income.from business and profession.
*Entered into a written MOU with a developer to provide professional services for marketing and selling of bungalows and plot for his ongoing project.
*Main clauses of the MOU include following revenant points, which are:
1. I am responsible for carrying out advertising , proposed buyer' site visit and sell related cost .
2. In consideration I will receive a fixed amount of share ( Not commission) per squre feet on sale.
3. Not eligible for share in case of cancellation of deal.
My query: During the current year some deals are decided between proposed buyers and the Developer for which registration is pending ( Registration is mandatory).
Towards those deals (Not registered) the developer has paid me some payments.
The amount of share received towards such unregistered deals will be taxable in my hand in the year of receipt or in the year of registration of document. (I fillow accrual method of accounting). Pls advice.
CAclubindia
