What is the treatement of disposal of fixed asstes

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Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2013 hellooo frends,

i have a query regarding treatment of "profit on sale of all block of fixed assets by a private limited company"

i want to know . what is the treatment of profit as per company act or as per income tax act.

its a short term assets...sale within 1.5 year...

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

05 July 2013 Income-Tax: Short term Capital Gain or Loss.
Companies Act: Profit or Loss to be transferred to "Profit/Loss on Sale of Assets" from the individual asset accounts.
.

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2013 thnx sir ...

i also want 2 know that what is the tax rate as per IT act 15% or normal co rate...

DTA/DTL will crate for this or not.....becoz its not a business income..

basically i want to now how to show all of the traction in books.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

05 July 2013 For STCG normal rate of taxation to the company will apply.
.
Proper adjustment is required in the DTA/DTL
and accumulated depreciation account , if there be any.
.
In the absence of relevant information it is not possible to deal with all the transactions.

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Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2013 sir for example

a private limited company earn 200000 business profit and profit on sale of fixed asset (plant and machinery) is 40000 after accumulated depreciation.

then what is the treatment of this..

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

05 July 2013 Net profit will be Rs 240000/- in P& L A/c .
.

In the IT Return.

Business Income 200000
STCG ............40000
.
.

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2013 that mean DTA/DTL will not create in this transation.