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# Computation of stcg on depreciable asset by power generation

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Service

[ Scorecard : 1381]
Posted On 17 June 2012 at 00:05

## STCG Calculation for Depreciable Assets

The STCG in relation to a depreciable asset (other than a undertaking engaged in the business of generation or generation and distribution of power) is determined as under

### 1) Block of Asset ceases to exist

 Sale Consideration XXX Deduct: - Expenditure Incurred XXX Opening WDV XXX Actual Cost of New Asset XXX ---- XXX ---- STCG/Loss XXX ----

### 2) Block of Asset exists

 Sale Consideration XXX Deduct: - Expenditure Incurred XXX Opening WDV XXX Actual Cost of New Asset XXX ---- XXX ---- STCG

nuli swami ayyappa
student

[ Scorecard : 104]
Posted On 20 June 2012 at 17:50

HI,THE MAIN DIFFERENCE BETWEEN TREATMENT OF ASSETS IN CASE OF POWER GENERATION COMPARED TO OTHERS IS,THERE IS NO CONCEPT OF BLOCK OF ASSETS,EACH ASSETS IS TO BE TREATED AS BLOCK OF ASSETS,THATS WHY THERE IS A CONCEPT OF TERMINAL DEPRECIATION WHERE AS THIS IS NOT SO IN OTHER CASES

NOW U NEED TO KNOW

ACTUAL COST

SALE PRICE

WDV OF INDIVIDUAL ASSETS

SO IF SALE PRICE IS<ACTUAL COST,<W.D.V,

SALE PRICE                                                                                XXX

LESS:EXPENSES OF TRANSFER                                          XXX

LESS:W.D.V                                                                                 XXX

____________________________________________________________

TERMINAL DEPRECIATION=                                                  -XXX(WE SHOULD TREAT IT AS TERMINAL DEPRTECIATION)

____________________________________________________________

IN CASE SALE PRICE<ACTUAL COST,>W.D.V

SALE PRICE                                                                                XXX

LESS:EXPENSES ON TRANSFER                                         XXX

LESS:W.D.V                                                                                 XXX

_____________________________________________________________

_____________________________________________________________

IF SALE PRICE>W.D.V

SALE PRICE                                                                                XXX

LESS:EXP ON TRANSFER                                                       XXX

LESS:(INDEXED/ORIGINAL)COST OF ACQUISITION      XXX

_____________________________________________________________

SHORT TERM/LONG TERM CAPITAL GAIN                            XXX

_____________________________________________________________

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