Scrap value assets

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2013 Dear Sir,
we have one scrap machinery for the period 12-13 for rs.563814 my question is how to treat the scrap value assets in a/cs (as per IT also)

Rupesh Jain

Rupesh Jain (Expert)
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13 June 2013 bank a/c
to assets a/c
and in income tax block of assets will reduce from sale proceeds

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2013 Respected rupesh jain sir
sry Iam not satisfied with your answer becaz that machinery was scraped and why we dr to bank
can we show it as expenditure like loss by scrap dr to asset a/c

Rupesh Jain

Rupesh Jain (Expert)
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14 June 2013 r/sir

you scrap the machine but you have to sold it then you make entry of sale/reduce from books
otherwise you may carry machinery value in books. till you not sold it.
when you sold it then make above entry.
and reduce sale proceeds from bolck of assets .

if no other assets in this block of assets then it will taxable under capital gain head it may
short term capital gain/loss depend on sale price of assets

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