Treatment of revenue generated during project implementation

This query is : Resolved

Pushpadant (Querist)
Follow

21 September 2012 Hi,

We are a Pvt. Ltd. Co. engaged in generation electricity by wind. The company was incorporated to set up 50 MW power plant. In the process the company acquired the exiting 10 MW wind farms and balance wind farms are to be procured and installed.

The COD of 50% of proposed project was completed as at the end of the financial year.

In the process of implementation of the project and acquisition of exiting plant, the company generated revenue by sale of power and used for project implementation, thereby reduced the borrowings.

Question: Whether the revenue generated during the implementation amounts to reduction in pre-operative expenses / project expenses or revenue liable for tax.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

21 September 2012 the said revenue needs to be offerred to income tax.(Since yours is a pvt ltd company, no commencement of business is required)

Message likes : 1 times

Arun Biyani

Arun Biyani (Expert)
Follow

09 October 2012 this has to be netted off from project expenses, reducing your overall project cost. same thing happened in our case a solar power company and one of the big 4 audit firm was on this opinion.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Manish Tiwari

rajkumar yadav

THUSHAR MURALI KRISHNA

Abhishek Kabra

ASHOK KUMAR TEKURU

Subscribe Now

Treatment of revenue generated during project implementation

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA