21 September 2012
A building purchased by Real Estate co. for Sale it should be treated as Fixed Assets or as Investment.... and whether depreciation Charged on it or not.....
21 September 2012
You are saying building is purchased for sale i.e it is stock-in-trade. So depreciation not allowed on stock-in-trade. so it is not a fixed asset nor investment.
21 September 2012
If it is purchased for subsequent sale and it is the business of purchasing and selling the properties then will be treated as stock in trade and if it purchased to augment the value of the property and not occupied substantially for use then will be classified as investment property.
CAclubindia
