Relating to income tax & vat

This query is : Resolved

amandeep singh (Querist)
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08 July 2012 SIR
I WANT TO KNOW ABOUT SALE/PURCHASE TREATMENT OF CAR.
WITH THE HELP OF ILLUSTRATION :-

WDV OF OLD Car - Rs. 67000

sale of old car as on June 2011 - 65000(inclusive of vat Rs. 7222/-(12.5%))

purchase of new car as on June
2011(inclusive of Insurance Expense - Rs.6500)- Rs.500000/-

i want to know about treatment of loss on sale car Rs. 2000/- and vat treatment in dvat

if their any section relates to then please provide the same.

thanks

CA Hardik Bunha

CA Hardik Bunha (Expert)
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08 July 2012 My Friend,
There is no loss on car sold, as per income tax act 1961, u/s 50(1)

WDV of car 67,000/-
ADD purchase during the year 5,00,000/-
LESS SOLD during the year (65,000/-)

hence, wdv of the block 5,02,000/-

this value should be appear in your balance sheet. depreciation will be charged on 5,02,000 as per rate i.e. 15%.

As per section 32(2) vat and other expenses related to asset will be capitalised.

VAT - it is dependent on your state and mateer with which kind of vat system you followed. in some state capitalised vat paid will be adjust against credit of vat.

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amandeep singh

amandeep singh (Querist)
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16 July 2012 THANK YOU SIR FOR YOUR ADVICE....

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