Question ID :
44639
Construction of building consideration for Occupancy right
The Private Limited company is getting lease of land and development cum occupancy right for 30 years from trust. The trust will get building constructed by company (builder) as donation when completed and some fixed rental amount yearly basis for lease. The company (builder) will use such property for rental income for 30 years.
How to give treatment of such donation in books of company ? Can we consider it as intangible asset (consideration for occupancy right)? Can we amortize it for 30 years? Please guide.
Further, How to treat in books of accounts of trust. ?
Thanks in Advance.
posted by
CA DHAVAL GHADIYALI
on
Apr 17 2024 12:00AM