05 November 2018
Our Co-operative society is registered before 10 years few works were pending in that condition builder has hand over, later society has claimed appro 90 laks for pending work(no such amt. was provided in society books) and file suit, now society and builder agreed to settle issue out of court and builder agree to pay Rs. 30 lakhs and will deduct tds @ 10% as full and final settlement which society agreed. In which head we should take this settlement amount so it dose n't affect society income tax liability ?? can society consider as capital receipt and no tax ?? where it doesn't hit society income and expenditure account or any other idea/ suggestion you can give as society is in process of accepting full and final settlement of the entire claim of the Complainant society against the Developers. If one can give case law in support of rely will be appreciable.
08 November 2018
The money received by the co-operative Society from the builder on behalf of the Members to be spent on the facilities to be provided for or as a Corpus fund is not taxable, in my opinion
CAclubindia
