Dear all...
Please reply my queries:
1. If an asset is sold before put to use in business than wheter it will be treated as short term capital loss or gain although depreciation was not charged.
2. In addition to the above if In a block there are 3 assets. 2 sold and last one was not put to used than what about depreciation and capital gain or loss.
Thanks in advance....
Well according to me as i understand that If an Asset is Installed in the Business premises it doesn't matters whether u use it or not , It is deemed that u have used it. So u have to calculate the Capital gain or loss whichever is there and also u have to charge depriciation on the cost in the books considering the no of days the asset is there in the Business premises.
1. It will be a short term loss or gain depends on the situation ...
2. If 2 out of 3 assets were sold and the remaining one is not put to use, in this case, their will be no depreciation on the remaining one ....
agreeed with varun.....
CAclubindia
