Gkannan (manager) (77 Points)
13 December 2013Sir,
Our company purchased land for Rs. 3 lakhs as per sale deed and paid further 3 lakhs how to account the excess payment of 3 lakhs. what are the tax implications if the same is accounted as goodwill and what is the correct procedure?
Please clarify.
ARJUN ASHOK
(CA Industrial Trainee)
(125 Points)
Replied 16 December 2013
this excess 3 lakh is a clear case of duty evasion. u cannot record it as the cosideration of land. case of goodwill doesnt arise in case of purchase of land. if u paid this amt as cash, then split the amt & record this amount as some other exp.
CAclubindia
