Sale of office by Pvt Ltd company
This query is : Resolved
01 July 2023
Dear Sir / Madam,
A Pvt Ltd owns an office purchased in 2009 for Rs. 3 crores. It is shown in balance sheet as an asset. Now A Pvt ltd is planning to sell its office for Rs. 9 crores. How show this entire sale in books of accounts and what would be the tax implication?
Kindly guide,
Regards
Suraj
A Pvt Ltd owns an office purchased in 2009 for Rs. 3 crores. It is shown in balance sheet as an asset. Now A Pvt ltd is planning to sell its office for Rs. 9 crores. How show this entire sale in books of accounts and what would be the tax implication?
Kindly guide,
Regards
Suraj
01 July 2023
Whether any depreciation was claimed during these years, or any structure made over it?
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01 July 2023
Sir, No depreciation was claimed.
What if depreciation was claimed by any assessee on office premises?
What if depreciation was claimed by any assessee on office premises?
01 July 2023
Declare the income under head Long Term Capital Gain, with indexation.
In second case the gain would be ST in nature, if used under any block of assets.
In second case the gain would be ST in nature, if used under any block of assets.
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02 July 2023
Thank you Rambhia Sir.
You mean to say, In second case it will treated as business income of the company that would be routed through P&L and taxed as per company tax slab rates???
You mean to say, In second case it will treated as business income of the company that would be routed through P&L and taxed as per company tax slab rates???
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02 July 2023
Not exactly. It is disputable issue. As per act it is considered as short term cap gain. But here it being plain land depreciation is not allowed and the asset is considered as investment only, so long term cap gain.
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02 July 2023
You are welcome.
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