29 June 2016
Conversion of inventory into capital asset during the year...In case of sale of Capital Asset, the LTCG arises..The interest borrowed for capitalization of Capital Asset whether considered as cost of Improvement during the time of inventory and can we take indexation benefit for the same??
29 June 2016
at the inventory time cost will be debit to P/L a/c . yes you take the indexation benefit from date of stock acquired by you. and pay LTCG @20%
29 June 2016
There is no effect in Pl at inventory time...change in inventory and cost development makes it zero.. Now on conversion of stock into capital asset..what is cost of acquisition and whether the borrowing cost and other expense is treated as cost of development..
CAclubindia
