Become a Certified GST Practitioner. Batch begins 18th Nov. Register Now!

Using a building premises for free

Atharv Sankliya (1354 Points)

22 May 2023

if a firm is using a building premises for free does it is recorded as income/benefit in p&l a/c??

Reply
Follow
Share

5 Replies

Mithun Pandey (36 Points)
Replied 22 May 2023

Will not effect any of the financial statement.

Upgrade to CAclubindia Pro. Subscribe Now!

sabyasachi mukherjee (27517 Points)
Replied 23 May 2023

It's disclosure is seperate.

Atharv Sankliya (1354 Points)
Replied 23 May 2023

@ sabyasachi Mukherjee please explain what does seperate disclosure in details
thanks in advance

sabyasachi mukherjee (27517 Points)
Replied 24 May 2023

Sec 28iv you can take benefit . But not in cash .

Yasaswi Gomes new (Finance ) (4514 Points)
Replied 24 May 2023

Section 28(iv) hitherto provides that any value of benefit or perquisite, whether convertible in money or not, arising from business or exercise of a profession would be considered as income and shall be chargeable to income tax as business income.?? Maybe disclosure is proper. It doesnt impact financial statement cause there is prescripttion that accounting stands must definitely have a ppe. So no need to record it. Apart from revenue recognition, nothing which is free needs to be presented in the financial statement. Because only commercial transactions are recorded for tax purposes and investors