banner_ad

Computation of stcg on depreciable asset by power generation

Others 1029 views 1 replies

 

HI , The below is computation for Short term capital gain to a depreciable asset other than power generation business, what would be computation for a depreciable asset by undertaking engaged in POWER GENERATION AND DISTRIBUTION

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

 

Replies (1)

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

_____________________________________________________________

BUSINESS INCOME                                                                 +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

_____________________________________________________________


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details