Using a building premises for free

if a firm is using a building premises for free does it is recorded as income/benefit in p&l a/c??
Replies (5)
Quick Summary
This discussion explores whether using building premises for free should be recorded as income or a benefit in a company's profit and loss account. While Section 28(iv) of the Income Tax Act may allow for such benefits, it's clarified that this doesn't necessarily impact the main financial statements. The consensus leans towards separate disclosure rather than direct income recognition, as only commercial transactions are typically recorded for tax and investor purposes.

Will not effect any of the financial statement.
It's disclosure is seperate.
@ sabyasachi Mukherjee please explain what does seperate disclosure in details
thanks in advance
Sec 28iv you can take benefit . But not in cash .

Section 28(iv) hitherto provides that any value of benefit or perquisite, whether convertible in money or not, arising from business or exercise of a profession would be considered as income and shall be chargeable to income tax as business income.?? Maybe disclosure is proper. It doesnt impact financial statement cause there is prescripttion that accounting stands must definitely have a ppe. So no need to record it. Apart from revenue recognition, nothing which is free needs to be presented in the financial statement. Because only commercial transactions are recorded for tax purposes and investors

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 10 July 2026
Article Assistant

N S Gokhale & Co

Thane

CA Inter

View Details
Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details
Company
21 July 2026
Chartered Accountant

Keshri & Associates

Thiruvananthapuram

CA

View Details
Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details
Company
Featured 02 August 2026
Accounts Executive

Aashok F&C Advisory

Guwahati

CA

View Details
Company
20 July 2026
Senior GST Executive

Chandak Agarwal & Co

Mumbai

Graduate (Any)

View Details
Company
ARTICLESHIP 16 July 2026
CA Article

Pipara & Co. LLP.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 16 July 2026
Article Assistant

G A R U D & Associates

New Delhi

CA Inter

View Details
Follow