Construction work income

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2014 Dear Sir
We are partnership firm, we are construction one building which is under construction as on 31.03.2014. Now can we file return as under :

Income(sale of Flat) Nil
Stock WIP XXXX
Int on capital XXXX
Other expenses XXX
Net loss as per P &l

Rupesh Jain

Rupesh Jain (Expert)
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03 July 2014 you have to adopt completion % method
under this income will consider as flat is completed on 31.3.2014
then you take income

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2014 Sir
Building is under construction and we have not sold any flat till now.
More if we show income now on percentabe of completion basis. than what would be impact when we sale flats actually to buyers ?? When we have to pay service tax and VAT ???? Sir please reply i am very much confused on it.

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