if we sale a plant & machinery which is a part of block and block is remain exist after sale of machine then wather such sale is chargable to capital gain ?
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 09 January 2013
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 09 January 2013
The same may be chargeable to capital gains or the depreciation may be allowed under PGBP head:
Opening WDV of block Block XXX
add: additions during the year XXX
Less: sale during the year (XXX)
CLosing WDV(Without current yr' depr)of teh block XXX
If the same is positive, then Depreciation will be claimed...
If the above is negative, then it shall be chargable to Capital Gains(which shall be Short term capital gains by virtue of section 50)
CA SHIVAM TANDON
(0)
(76 Points)
Replied 09 January 2013
IF THE WDV OF BLOCK AFTER SALE OF P& M is POSITIVE THEN CHARGE DEPRECIATION AND IF WDV IS NEGATIVE THEN IT PROFIT AND TAXABLE UNDER SECTION 50 AS STGC.
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