Capital gain
This query is : Resolved
11 December 2012
sir,
if a company gets deduction of 100% on fixed asset in first year, then whenever he sold the asset at whatever price what is implication on tax ? plz suggest.......
if a company gets deduction of 100% on fixed asset in first year, then whenever he sold the asset at whatever price what is implication on tax ? plz suggest.......
11 December 2012
Hi,
If you are referring to the depreciable fixed assets and 100% rate of depreciation
Then pls note that Block concept comes into the picture. WDV of the block (in which the asset in question falls under) becomes the cost of acquisition if Sale proceeds exceeds the WDV of the Block. This would be charged as STCG/STCL
If the asset is the only asset in the block, that means WDV would be NIL. Hence net sale proceeds would be charged as STCG
Hope it resolves!
If you are referring to the depreciable fixed assets and 100% rate of depreciation
Then pls note that Block concept comes into the picture. WDV of the block (in which the asset in question falls under) becomes the cost of acquisition if Sale proceeds exceeds the WDV of the Block. This would be charged as STCG/STCL
If the asset is the only asset in the block, that means WDV would be NIL. Hence net sale proceeds would be charged as STCG
Hope it resolves!
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