Completion of Contract Triggers Taxable Event for Flat Sales; Advances Reclassified as Sale Consideration at Project End.

Taxable event - Completion of contract - profit on sale of the flats - Advance received from VGP which in fact is the sale proceeds of the flats, on completion of the project has to be treated as sale consideration. The consideration can only be treated as advance till the time the project is in progress. The day the project is completed, the advance has to be treated as sale consideration - AT .....

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