agricultural practice by company
doshi devang
(Querist) 18 March 2010
This query is : Resolved
sir,
kindly guide me on following:
1) whether company can hold agricultural land?
2) can it earn profit by agriculture from such land?
3) is this profit is taxable or not?
4)if i have one company with certificate of commencement of business, than what can now i do to take agricultural land in my company's name?
post script: i am not registered agricultural land holder.
A V Vishal
(Expert) 18 March 2010
1) whether company can hold agricultural land?
Ans.Yes
2) can it earn profit by agriculture from such land?
Ans. Yes
3) is this profit is taxable or not?
Ans. It is taxable as business income.
if i have one company with certificate of commencement of business, than what can now i do to take agricultural land in my company's name?
post script: i am not registered agricultural land holder.
Ans. You can purchase the land in the company's name.
Raj Kumar Makkad
(Expert) 18 March 2010
I have also similar opinion as of Vishal.
doshi devang
(Querist) 18 March 2010
but sir,
agricultural income is exempt to all the assessee.
than on what basis the company is liable to pay tax on agricultural income?
A V Vishal
(Expert) 18 March 2010
WHAT IS THE NATURE OF THE COMPANY VIZ.WHAT IS ITS MAIN BUSINESS
A V Vishal
(Expert) 18 March 2010
To consider an activity as agriculture the basic operation such as tilling, sowing, irrigating & harvesting should have been carried out. Thereafter what is sold in the market should be the primary product harvested. Receipt from such sale is considered as agricultural receipt. If however some further processing or modification were done to the harvested product to enhance its marketable value then such enhanced value would be considered as business income.
doshi devang
(Querist) 19 March 2010
sir,
is there any necessary to have any registered agri. land holder for holding agri land by company?
whether a firm can hold agri. land?
whether it is necessary for the firm to have one or more partner of registered agri land holder?
what is the process for taking agri land by such firm?
A V Vishal
(Expert) 19 March 2010
is there any necessary to have any registered agri. land holder for holding agri land by company?
No
The reply to the second query is in negative.
