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Purchase of Land - Investment or Fixed Asset, Accounting - Auditing |
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Purchase of Land - Investment or Fixed Asset |
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For Knowledge purpose: A company or Businessman purchased Land. Whether it can be shown as Fixed Assets or Investment ?? Please suggest. Also From Income tax point of view, please suggest tax implication as far as classification as above is concerned. Posts / Replies Showing Replies 1 to 3 of 3 Records Page: 1
It is to be ascertain the purpose for which the land is purchased.
Whether the company is buying land for setting up of plant or for some other purpose ?
I give 3 situations - LAND: Situation-1: Land is used for Plant Development for Business. Situation-2: Land was used for agriculture for addition income or given on rent which is different from main business. Situation-3: Land used for nothing but just for Value appreciation in future. Likewise for example BUILDING: Situation-1: Building used for office work or for employees residential purpose. Situation-2: Building given on rent for additional income Situation-3: Building used for nothing just for value appreciation in future if any. Page: 1 Old Query - New Comments are closed. |
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