banner_ad

Fundamental query

This query is : Resolved 
Profile Image

Profile Image

(Querist)
21 July 2013 Is capital receipt taxable?
A ltd recd MONETARY PENALTY by its supplier as the supplier had not completed the construction of its PLANT/Factory and their initial contract stated that in case constrction is not completed by particular date, 10 lakh rupees wud hav to be paid. Such damages are thus CAPITAL RECEIPTS in the hand of A Ltd. How will this be taxed? In cap gains or other income? or not taxed at all being a CAPITAL RECEIPT????
Profile Image

CA PARAS BAFNA

Profile Image

CA PARAS BAFNA (Expert)
21 July 2013 The receipt can not be treated as capital gain as there is no transfer of capital asset.
.
The valuation of the WIP or Capital Asset has to be adjusted by Rs. 10.00 lac.
.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details