26 July 2024
One of my client has entered into a Lease cum sale agreement on purchase of immoveable property, where the tenure of the lease is 10 years and thereafter the ownership is transferred to the client. The agreement is entered with KSSIDC (Karnataka Government Entity).
Here is the extract:
NOW THIS LEASE CUM SALE WITNESSESTHAS FOLLOWS
Allotment of Industrial Plot allotted by KSSIDC to the entrepreneurs belonging to 2A Category the Government of Karnataka has granted 6 Quarterly Installment of Balance amount of Plot Rs. 34,78,406/- Plot along with interest at 12.5% p.a in 8 equal quarterly instalments, as under :
1. Total Cost of the Plot Rs._____________________________Rs. 60,72,000
2. Less EMD Paid Rs.___________________________________Rs. 16,00,397
3. Balance amount to be paid__________________________Rs. 44,71,603
4. Six Quarterly installment amount ___________________Rs. 8,57,738 5. (StartingFrom:17/06/2023)
On receipt of the payment of EMD vide receipt No.1208 dated 01.07.20222Rs. 6,07,200 /- and vide receipt No, 1282 dated 04.05.2023 Rs.9,93,197/- whereof, the KSSIDC hereby acknowledges the KSSIDC doth hereby demise to the Allottee on Lease cum Sale the Plot on land numbered as mentioned in the schedule.
How do I account for taxation purposes. Kindly assist.
CAclubindia
