Profit on sale of fixed asset
This query is : Resolved
22 August 2011
M/s XYZ Pvt. Ltd. has earned a Profit on sale of a Machinery (purchased in 2007 and sold in 2010). What is the treatment of the same in Income Tax?
Ravi Jhamb
(Expert)
23 August 2011
it is treated as Capital profit and will show in P/L a/c. the assets will reduced by the book value
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CA PARAS BAFNA
(Expert)
23 August 2011
For the purpose of Income Tax, You have to first see that whether there are other Machines exist in the same block.
.
You can deduct the sales consideration from the WDV of the Block after considering Additions in the block.
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In case there is no other asset in the block , the difference will be treated as STCL or STCG. Section 50.
.
The treatment given in above by the expert Shri Ravi, ca be adopted in the Books.
.
You can deduct the sales consideration from the WDV of the Block after considering Additions in the block.
.
In case there is no other asset in the block , the difference will be treated as STCL or STCG. Section 50.
.
The treatment given in above by the expert Shri Ravi, ca be adopted in the Books.
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23 August 2011
I agree with both the experts
23 August 2011
What is the rate of tax for STCG realised on sale of machinery by a Company?
Thank You
Thank You
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CA PARAS BAFNA
(Expert)
23 August 2011
STCG is taxed as the normal profits of the company are taxed.
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