WDV of Block of Asset

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Megha Aggarwal (Querist)

09 May 2011 we have only 1 car in the block as on 1April,2010 with WDV of Rs.5,00,000/-. We sold it in May for Rs.3,00,000/-. Then we purchased a new Car for Rs. 8,00,000/- on 31st March, 2011? What should be the WDV of the Block as on 31st March, 2011 & also give the full explanation for depreciation or Capital Gain/ Loss in this case.

Thanks

S.A.BADAMIKAR

S.A.BADAMIKAR (Expert)

09 May 2011 WDV as on 01/04/10 Rs. 500000/-
less : Sale value Rs. 300000/-
Add : Purchase Rs. 800000/-
WDV before Dep Rs.1000000/-
Less Dep Full rate Rs 30000/-(15% on 200000)
Less Dep @ 1/2 rateRs. 60000/- (7.5% on 800000)
WDV as on 31/03/11 Rs.910000/-

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CA Navin Jain

CA Navin Jain (Expert)

09 May 2011 WDV ALWAYS CALCULATED AT THE END OF YEAR THEREFORE IN YOUR CASE WDV AS ON 31.3.2011 IS RS. 1000000

DEP ON RS. 200000 @ 15%
DEP ON Rs. 800000 @7.5%

HENCE THERE IS NO CAPITAL GAIN ARISE

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Nayan Das

Nayan Das (Expert)

09 May 2011 above reply is correct but companies act different. DEP ON RS. 200000 @ 25.89%,
DEP ON Rs. 800000 @25.89% on days basis

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CA Navin Jain

CA Navin Jain (Expert)

09 May 2011 @ Nayan, you are wrong in the preview of campaniles act,

as per companies act if u sold a particular assets then there will always be profit or loss

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