I have a doubt regarding transfer of immovable property:
1)A transfer of immovable property takes place between companies of same grp 2)a consideration has been paid which is cost itself. 3)an agreement was executed which was not registered. 4)can one company show it as a sale and another as an addition?? Please answer query as soon as possible...
29 August 2009
As per Registration Act 1908, Registration of documents relating to immovable property (of value of more than Rs.100 /-) is compulsory.
Both the selling company and purchasing company must consider and give effect to the transfer of immovable property in their books of accounts, since the significant risk and rewards of ownership has been transferred to the buyer.
Further, registration is just a formality that needs to be fulfilled.
29 August 2009
sir ,would there be any problems if both the purchasing company and selling company record an addition and deletion without the property being registered ??
CAclubindia
