stock in trade
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 May 2010
respected members
a newly formed company buy a property as stock in trade to get the old structure demolished and construct flats but later project was called off.now company after 4 years wants to sell the property as it is.what are the tax implications on the company.cost of purchase 20 lakhs but now due to abnormal increase in circle rate by development authority.the price has zoomed to 40 lakhs as per stamp duty.cost of property is still not more than 22 lakhs due to property prices correction
a newly formed company buy a property as stock in trade to get the old structure demolished and construct flats but later project was called off.now company after 4 years wants to sell the property as it is.what are the tax implications on the company.cost of purchase 20 lakhs but now due to abnormal increase in circle rate by development authority.the price has zoomed to 40 lakhs as per stamp duty.cost of property is still not more than 22 lakhs due to property prices correction
15 May 2010
CAn you tell me the exact treatment don till today? and if you want to sell the property at wat amount can u sell off.
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 May 2010
company hold it as stock in trade till now.company can sell it at the most 24 lakhs
20 November 2010
If the company is a real estate/ property developers then, the purchase of land would be treated as Inventory.
Otherwise it is a capital asset.
If the land is selling now, which was purchased 4 years ago, shall be treated as Long term capital gains.
Sale consideration less Indexed cost of Acquisition.
Otherwise it is a capital asset.
If the land is selling now, which was purchased 4 years ago, shall be treated as Long term capital gains.
Sale consideration less Indexed cost of Acquisition.
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