Accounting method
This query is : Resolved
17 January 2015
One of my client want to sale his Constructed Property. Property value is as per Ready Reckoner is Rs. 4.00 CR.
Agreement Value is also Rs. 4.00 CR. Buyer want to pay Rs. 3.50 CR by chq and Rs. 50.00 Lac in cash.
As per Ready Reckoner I will have to pay Income Tax on Rs. 4.00 CR. Whereas I will have to show Rs. 3.50 CR in the books only.
I may not show Rs. 50.00 lacs in the books due to buyer wants to pay in cash.
In this case is there any other way to show in the books the whole agreement value i.e. Rs. 4.00 CR?
Please do the needful at the earliest.
Awaiting for your positive reply.
Agreement Value is also Rs. 4.00 CR. Buyer want to pay Rs. 3.50 CR by chq and Rs. 50.00 Lac in cash.
As per Ready Reckoner I will have to pay Income Tax on Rs. 4.00 CR. Whereas I will have to show Rs. 3.50 CR in the books only.
I may not show Rs. 50.00 lacs in the books due to buyer wants to pay in cash.
In this case is there any other way to show in the books the whole agreement value i.e. Rs. 4.00 CR?
Please do the needful at the earliest.
Awaiting for your positive reply.
17 January 2015
you have to show all consideration in books.
17 January 2015
Yes. Its absolutely correct but I want to tell you that Rs. 50 lacs he can not use as a white money.
This is the main problem.
Seller will pay Income Tax on Rs. 4.00 CR but still he can not use rs. 50.00 lacs in white. In this case what he should do?
This is the main problem.
Seller will pay Income Tax on Rs. 4.00 CR but still he can not use rs. 50.00 lacs in white. In this case what he should do?
Guest
Guest
(Expert)
17 January 2015
Show Rs50 lacs still recievable and after 2-3 years show as a bad debts..
17 January 2015
Ok. But still my problem not resolved i.e. on Rs. 50.00 lacs he will pay Income Tax but still he can not use as a white money.
So is there any other way to convert this amount as white money and buyer should have also no problem as far as concern from i.T. Department.
So is there any other way to convert this amount as white money and buyer should have also no problem as far as concern from i.T. Department.
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