1.) An consultant renovated his office & bought all below new equipments in exchange of old
Sold A.C W.D.V :- 72,000/- Sold @ 84,000/- & bought new A.C's worth Rs. 1,45,000/-
Sold Old Computers W.D.V:- 56,000/- @ scrap Rs. 24,000/- & bought new computers @ Rs. 85,000/-
Furniture W.D.V : - 23,500/- @ scrap Rs. 25,000/- & bought new Furniture @ Rs. 75,000/-
Is the gains above W.D.V taxable?
As some of the items were exchaged should we directly show the differential value as new asstes purchase value?
2.) Should Upgradation of computers like replacing old monitors with LCD, upgrading the Ram, HDD treated as renvenue Expenditure like Repairs & Maintenance.
3) The Consultant (individual) hire individuals as consultants & pays Remuneration to them. Is he liable to deduct T.D.S?
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Dear Raj,
1) I hope all the transactions of sale & purchase have fallen in one FY, othetwise CAPITAL GAIN WILL ARISE
Plant & Machinery
Block 1 - 15% (AC) =72,000 - 84,000 + 1,45,000 = 1,33,000 (Dep @ 15%* will be allowed)
Block 2 - 60% (Computers) =56,000-24,000+85,000 = 1,17,000 (Dep @ 60%* will be allowed)
Furniture & Fixture
Block - 10% = 23,500-25,000+75,000= 73,500 (Dep @ 10%* will be allowed)
* Note = Depreciation will be half of the ratementioned, if the new asset was put to use for less then 180 days
2) Regarding ur second question = One of the test to decide between "capital & revenue" is the enduring nature - if benefits from the assets are expected over a period of time - can be capitalized
3) Applicability of TDS will depend upon the fact whether in the previous year his gross receipts exceeds Rs. 40 Lacs in case he is carrying on Business & Rs. 10 Lacs in case he is carrying on Profession.
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Sir,
We want to sell full plant and machinery of sodium silicate manufacturing plant of capacity 10-15 MT per day.
The plant and machinery is in full working condition.Also ready to guide in business and give the list of tentative purchasers.
The reason of sell off is, my fathers health does not allow to work much and the factory was runned by him.
Regards,
Varun Gupta
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