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Querist : Anonymous

Querist : Anonymous (Querist)

11 July 2011 why motor cycle is the part of fixed assets while it is movable and we can sell it before one year please tell me sir

U S Sharma

U S Sharma (Expert)
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11 July 2011 for non business its not an asset, but effect.

for business assessee its fixed asset, as it has to be used for business purpose and does not change status during the year ( unless the assesee is a trader of motor cycle)

the sell before 1 year is net loss for assesee , in business income he can set it off, if no business income then no set off

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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11 July 2011 Fixed Assets includes both movable and immovable assets. Its sevices can be taken by the establishment for a longer period
comparatively. Due to this it is shown under Fixed Assets.

In a show room of Motor Cycle it is stock in trade.

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