banner_ad

Profit on sale of fixed asset

This query is : Resolved 
Profile Image

Profile Image

(Querist)
22 August 2011 M/s XYZ Pvt. Ltd. has earned a Profit on sale of a Machinery (purchased in 2007 and sold in 2010). What is the treatment of the same in Income Tax?
Profile Image

Ravi Jhamb

Profile Image

Ravi Jhamb (Expert)
23 August 2011 it is treated as Capital profit and will show in P/L a/c. the assets will reduced by the book value
Profile Image

CA PARAS BAFNA

Profile Image

CA PARAS BAFNA (Expert)
23 August 2011 For the purpose of Income Tax, You have to first see that whether there are other Machines exist in the same block.
.
You can deduct the sales consideration from the WDV of the Block after considering Additions in the block.
.
In case there is no other asset in the block , the difference will be treated as STCL or STCG. Section 50.
.
The treatment given in above by the expert Shri Ravi, ca be adopted in the Books.
Profile Image

C A S.S.Agarwal, M.Com.,LL.B,

Profile Image

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
23 August 2011 I agree with both the experts
Profile Image

Devendra

Profile Image

Devendra (Querist)
23 August 2011 What is the rate of tax for STCG realised on sale of machinery by a Company?


Thank You
Profile Image

CA PARAS BAFNA

Profile Image

CA PARAS BAFNA (Expert)
23 August 2011 STCG is taxed as the normal profits of the company are taxed.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details