10 September 2011
My client is private limited company engaged in construction of building. Land is not owned by company. The Company had launched a commercial scheme. only 60% shops/office could be sold. The company has temporarily given shops on rent. Shops unsold is stock in trade for company. Can company treat rent income received as business income.
10 September 2011
HA HA HA HA HA I SEEN FROM THE ABOVE POST WHEN THE FUTURE OF INDIA IS GOING ON...
I REQUESTED TO ALL FRIENDS READ QUESTION CAREFULLY...........
IN THIS CASE RENT INCOME WILL BE TREATED AS BUSINESS INCOME......BECAUSE HERE ASSESSEE IS ENGAGED IN CONSTRUCTION BUSINESS.
ONE OF THE INTERESTING THING IN YOUR CASE IS COMPANY HAS NOT ITS LAND......SO AS PER INCOME TAX ACT IT WILL CONSIDER AS DEVELOPER BUT NOT A BUILDER. income tax department alloted three category (1) Builder (2) Developer (3) contractor. ALL ARE LOOKING SAME BUT A LITTLE DIFFERENCE BETWEEN THEM. ENJOY ALL EXPERTS..........
Like you have some assets and you are getting some interest on it but earning interest is not your main business. AND IN ABOVE CASE SHOPS ARE RENTED TEMPORALLY.
19 September 2011
still laugh on PUNIT AND ABHISHEK.........
Mr. Punit you need to learn account too very well. now i m dam sure to laugh on u HA HA HA. Mr. punit for your kind information DEVELOPER is out of scope from service tax.
Mr. abhishek in the given case company has not its own asset READ CAREFULLY.
CAclubindia
