Milk business (few buffaloes are sold)
This query is : Resolved
28 July 2013
hi friends
How to treat sale of live stock (sold few buffaloes)in case of MILK business.
How to treat profit / loss in sale of buffaloes in P&L A/c
is it taxable income under income tax act is there any exemption is available or any other different treatment is required for disclose in Income tax return ?????
friends please suggest me there is no longer time to fill the income tax return .
thank & regards
How to treat sale of live stock (sold few buffaloes)in case of MILK business.
How to treat profit / loss in sale of buffaloes in P&L A/c
is it taxable income under income tax act is there any exemption is available or any other different treatment is required for disclose in Income tax return ?????
friends please suggest me there is no longer time to fill the income tax return .
thank & regards
28 July 2013
In my view, you have to first refer "Janma-Kundlies" of the Buffaloes being sold.
.
Ascertain - It was purchased or acquired as a "Bonus Share".
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If B1 is Purchased then deduct its cost from the Live Stock. Excess received should be treated as business profit.
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If B2 is raised (Bonus Share) its cost of acquisition is Zero. Credit entire sales consideration to P&L A/c .
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Please wait for opinion of the field-expert.
.
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Ascertain - It was purchased or acquired as a "Bonus Share".
.
If B1 is Purchased then deduct its cost from the Live Stock. Excess received should be treated as business profit.
.
If B2 is raised (Bonus Share) its cost of acquisition is Zero. Credit entire sales consideration to P&L A/c .
.
Please wait for opinion of the field-expert.
.
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28 July 2013
Sir
the Buffaloes are purchased for Diary business with cash there is no Bonus share. (the diary running on proprietary concern )
In diary business few Buffaloes are sold .
the Buffaloes are purchased for Diary business with cash there is no Bonus share. (the diary running on proprietary concern )
In diary business few Buffaloes are sold .
28 July 2013
"Bonus share" means Baby Buffaloes born from the buffaloes purchased. A baby Buffalo is raised at the dairy for which costs incurred if any, are considered as expenses.
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Suppose 20 buffaloes are being sold for Rs 1000000. Out of 20, 18 were purchased for Rs 900000. 2 Baby Buffaloes, now grown up, Cost 0. Profit 100000.
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Suppose 20 buffaloes are being sold for Rs 1000000. These 20 were purchased for Rs 900000. (2 Baby Buffaloes, now grown up, Cost 0 are not sold) . Profit 100000.
.
Suppose 20 buffaloes are being sold for Rs 1000000. Out of 20, 18 were purchased for Rs 900000. 2 Baby Buffaloes, now grown up, Cost 0. Profit 100000.
.
Suppose 20 buffaloes are being sold for Rs 1000000. These 20 were purchased for Rs 900000. (2 Baby Buffaloes, now grown up, Cost 0 are not sold) . Profit 100000.
28 July 2013
Thank you sir i understand
if there is no bonus buffaloes (baby buffaloes) all are normal we are sold few buffaloes then profit arise on sale of Buffaloes are required to P&L a/c credit and on that profit also taxable ???
if there is no bonus buffaloes (baby buffaloes) all are normal we are sold few buffaloes then profit arise on sale of Buffaloes are required to P&L a/c credit and on that profit also taxable ???
28 July 2013
Yes. Profit is Taxable.
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Reason: What ever fodder, Grass, Water, etc.... has been consumed by these, has been debited to P&L.
.
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Reason: What ever fodder, Grass, Water, etc.... has been consumed by these, has been debited to P&L.
.
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