02-04-2004, 10:28 PM
AOA
I do not agree with both above comments. They may be right in books but department will never allow them. The current position is that you only show revenue for number of months the building has been lent, thus other expenses for non rent period are automatically prorated. As regards the pro rating formula , may I inform you that the fundamental defination of rentaltax scope includes that tax is amounts expended to earn income are only deducted. For period without income their is no deduction.
Aamer Sikandar
I do not agree with both above comments. They may be right in books but department will never allow them. The current position is that you only show revenue for number of months the building has been lent, thus other expenses for non rent period are automatically prorated. As regards the pro rating formula , may I inform you that the fundamental defination of rentaltax scope includes that tax is amounts expended to earn income are only deducted. For period without income their is no deduction.
Aamer Sikandar
