26 February 2010
OUR COMPANY IS IN REAL ESTATE BUSINESS.WE HAVE PAID THE LAND REGISTRATION CHARGES TO FOREST DEPARTMENT. CAN YOU PLEASE TELL ME UNDER WHICH HEAD IT SHOULD BE CHARGED ??? PLEASE REPLY ITS URGENT
I assume that you are in the business of purchasing and selling land or developing land after purchase.
The registration charges are required to be debited to registration charges a/c which at the end of the year will be debited to Profit & Loss a/c.
In the alternative, if the land purchased is a capital asset, the registration charges will be debited to land a/c & land will be an asset in the balance sheet.
CAclubindia
