Tax treatment on sale of fixed assets

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2014 Dear sir

There are a certain type of Fixed Assets(FA) mention in Balance sheet. I sold out some assets from it with issue of Retail Invoice of 4+1% Tax with creating new sale account of "Fixed Asset Sale".

Kindly suggest that how to reduce FA from balance sheet. What is entry to pass in account?

Amol S Joglekar

Amol S Joglekar (Expert)
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13 November 2014 No need to create sale account.
Now that you have created one, transfer the fixed asset to this sale account by debiting 'fixed asset sale' and crediting 'fixed asset' account with the WDV of the fixed asset.

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Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2014 Thanks to reply.
I have paid tax on sale of FA, so I can not make nill balance of fixed asset sale account. Pls Suggest.

Amol S Joglekar

Amol S Joglekar (Expert)
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17 November 2014 There is NO nexus between paying the tax AND nullifying the account.

Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2014 If I nill the sale account, how to match Tax amt with sale amt in VAT return

Amol S Joglekar

Amol S Joglekar (Expert)
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17 November 2014 Take the print out for VAT purpose and keep it ready.

Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2014 would any problem create in balance sheet on time of final submission to CA?

Amol S Joglekar

Amol S Joglekar (Expert)
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18 November 2014 Why do you feel that it will create problem? Computation and Accounts in Tally may differ.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2014 Ok Thanks for guidance.

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