Treatment of financing cost for real estate developers
This query is : Resolved
28 December 2009
My client is developing a SEZ for which he is taking the assistance of a co-developer who would administer the whole project. The construction would be complete in 3 years after which the luxury apartments in SEZ would be sold out. During construction period the client would pay 5% of project cost to the co-developer. What would be the treatment of 5% of project cost paid during construction?Whether it should be included in cost of project which would be shown as Capital WIP during construction period and later as it is it would be debited to P&L A/c at time of sale.
28 December 2009
It is to be capitalized not transfered to P&L account.
But as per deductions
you will get deduction of 100% profits up to 10 years.
But as per deductions
you will get deduction of 100% profits up to 10 years.
28 December 2009
Thanks , but if in initial 3 years there is no revenue, then 100% deduction could be deferred in any 15 years or not?
30 December 2009
no
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Sale of property furniture sale
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Tds on building rent monthly
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
