Revised schedule

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 November 2013 A company paid to a landlord a sum of money for example 10 lakh to purchase his land. After few years dispute arise and repaid the advance with interest and compensation for example 15 lakhs.
how it should be accounted it in compliance with Revised Schedule?

CA Parul Saxena

CA Parul Saxena (Expert)
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01 November 2013 Extra 5Lakhs earned should be shown as interest income and classified as other income.

Querist : Anonymous

Querist : Anonymous (Querist)

01 November 2013 It does not include only interest component but also compensation component. then?

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CA Parul Saxena

CA Parul Saxena (Expert)
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01 November 2013 extra amount by whatever name called interest or compensation to be recorded as other income

Ganeshbabu K

Ganeshbabu K (Expert)
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01 November 2013 yes can be recognised as indirect income..
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if possible account seperately for interest income and compensation on cancellation of contract
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and you may show in "Other Income" in statement of profit and loss