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.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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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.

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