Dear Sir,

In case of Joint Development agreement as per general practice the landowner gives land to builder, then builder will gives some flats to landowner as per agreement.

1)Whether the accounting entires need to pass in the books of builder for flats given to landowner ?

2) Whether the Flats given to landowner will be considered as turnover as per income tax Act ?

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1. NO 

2. IT WILL NOT BE CONSIDERED IN TURNOVER BECUASE IT IS NOT REVEUNE OF THE DEVELOPER EVEEN THOUGH AGREEMENT WOULD BE IN THE NAME OF DEVELOPER WHEN LAND OWNER FLAT SOLD BUT ALREADY IN JDV IT IS MENTIONED AND POWER OF ATTORNEY GIVEN TO BUILDER THAT ON SALE OF LAND OWNER FLAT AGREEMENT WOULD BE DONE IN NAME OF BUILDER BUT IT WOULD NOT BE ACCOUNTED IN BOOKS OF ACCOUNTS