Menu
Taxability of Real state business
Are there any time limit from the year of construction builders has to pay Income tax ?Refer sec also
Replies (2)
Quick Summary
Pay before due date
The Company (builders) has to applied five step model as per Ind AS 115 ‘Revenue from contracts with customers’ to recognise revenue in the standalone financial statements. The Company satisfies a performance obligation and recognises revenue over time, if one of the following criteria is met:
a. buyers take all the benefits of the property as real estate developers construct the property.
b. buyers obtain physical possession of the property.
c. the property unit to be delivered is specified in the contract and real estate entity does not have an alternative use of the unit;
d. the buyer does not have the discretion to terminate the contract;
e. the entity has right to payment for work completed to date.
income will become in the year in which all 5 conditions met.
a. buyers take all the benefits of the property as real estate developers construct the property.
b. buyers obtain physical possession of the property.
c. the property unit to be delivered is specified in the contract and real estate entity does not have an alternative use of the unit;
d. the buyer does not have the discretion to terminate the contract;
e. the entity has right to payment for work completed to date.
income will become in the year in which all 5 conditions met.
Recent Topics :
- HDFC Bank’s Bureaucracy: The Nightmare of Fl
- Running a CSC Center, Maha E-Seva Kendra, Setu Ken
- GSTR-9 Table 8A issue
- CA Inter Coaching institutes at Hyderabad
- Looking for practising CA
- TDS return filing
- Need formats of FS as per Co act 2013 in soft copy
- Remittance to italy
- Invoice made but goods not sent
- How Do CA Firms Manage Client Document Collection
Related Topics :
CAclubindia
