Non Moving stock sold off as scrap
This query is : Resolved
08 October 2009
Dear freinds,
Kindly help me with the tax treatment of -
Non moving stock of packing material lying with the company since long ( value runs into lacs ) . now decided to segregate the whole as good and not required. The latter to be sold off as scrap. Kindly give me the different methods of accounting this income as well as the respective tax treatments for the same.
Kindly help me with the tax treatment of -
Non moving stock of packing material lying with the company since long ( value runs into lacs ) . now decided to segregate the whole as good and not required. The latter to be sold off as scrap. Kindly give me the different methods of accounting this income as well as the respective tax treatments for the same.
08 October 2009
The diminution in the value of closing stock will automatically get reflected in the revenue account. There does not appear to be special tax treatment.
The sale proceed shall be included as an indirect income.
The sale proceed shall be included as an indirect income.
08 October 2009
Show the sale proceeds under other income in P&L a/c.
The profit and loss on such sale will get reflected in P&L a/c.
The same will be taxable as business income.
The profit and loss on such sale will get reflected in P&L a/c.
The same will be taxable as business income.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Itr 1 processing
- Off Market debit and credit transaction
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- ITR returnFY25-26
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR 1: Details for showing Exempt Income
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR validation error - Balance sheet is not filled
- Share accounting-->fifo - capital gain - period as per fifo?
- Registration as Authorised Representative of minor
- Article ship defecit
- Bank Accounts in Balance Sheet for ITR 3
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
