Sale of asset and sale of block of assets
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 April 2018
what could be the tax implication in case of sale of the individual asset and in case of a block of asset and accounting treatment.
26 April 2018
When individual asset is sold without exhausting the block, sale value will be
deducted from the WDV of the block, meaning there by the remaining WDV
will not exactly represent the asset value subject to the profit or loss element
of the sold out asset and a percentile to that extent will affect the income tax
actually payable by the entity.
If block of the asset is exhausted, and if there is a balance after setting off
the sale value, that balance will be treated as short term loss/ gain as the
case may be leading to a situation with a corresponding change in the income
tax payable and physical presence of assets with the entity.
deducted from the WDV of the block, meaning there by the remaining WDV
will not exactly represent the asset value subject to the profit or loss element
of the sold out asset and a percentile to that extent will affect the income tax
actually payable by the entity.
If block of the asset is exhausted, and if there is a balance after setting off
the sale value, that balance will be treated as short term loss/ gain as the
case may be leading to a situation with a corresponding change in the income
tax payable and physical presence of assets with the entity.
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