A plot of land taken on rent now the school is constructing its premises on it...is it allowed if provided in agreement and can we debit the exp in income and expenditure account .
6 Replies
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177741 Points)
Replied 21 June 2019
What is the contract of lease years, any other terms for construction of building over it.
pavel
(student)
(461 Points)
Replied 21 June 2019
Rambhia sir, its the school is paying every month rent and only grnd floor is constructed ...school principal says its not on lease ...but i had a question is it possible to construct the school on rented plot ...
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177741 Points)
Replied 22 June 2019
How the building is constructed over other's land, when its not rented or leased?
Cannot claim anything unless there is long term lease.
pavel
(student)
(461 Points)
Replied 22 June 2019
sir they took on rent and paying it evry month . ..my question is can a school be constructed on rented plot or has to make lease agreement or development agreement
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177741 Points)
Replied 24 June 2019
No need of development agreement as such, the building can be constructed over rented plot.
Question arises if depreciation can be claimed over the capital investment, when land is not your own. ITO do not allow it as revenue expenditure, but for depreciation ...yes, if its long lease.
pavel
(student)
(461 Points)
Replied 24 June 2019
Sir thank u soooo much for your valuable time and reply ...thank u once again
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