Car sale entry in tally prime

Journal entry for : 

Debit : Bank/Cash account Rs.5,25,000

Credit : Car account Rs.3,20,351

Credit : Profit on Sale of Asset Rs.2,04,649.

Helo Sir, Please confirm gst payable on above case of car sale, and also confirm it is  sale and will reflect in GSTR1 & 3B if GST payable on profit @ 18% and we need to book as a sales voucher in Tally prime ??

GST Applicable on old car sale @ 18%, Deposit Challan and File DRC 03 voluntarily. No need to show in GSTR1 & GSTR3B. because GST is applicable only profit portion.

The ₹2,04,649 is not automatically a taxable profit: it is the difference between the sale proceeds and the stated book WDV, and tax treatment depends on how the car is classified and whether it belongs to a depreciation block.

In Tally Prime, record the sale proceeds and remove the car’s cost and accumulated depreciation from the fixed-asset ledger. If ₹3,20,351 is the WDV on the sale date, the basic entry is:

Bank/Cash Dr ₹5,25,000
Accumulated Depreciation Dr (car’s accumulated depreciation)
To Car/Fixed Asset (original cost ₹13,83,110)
To Profit on Sale of Asset (balancing figure)

If ₹3,20,351 is the WDV as at 1 April 2025, it cannot be used for a sale dated 1 February 2025; use the asset’s carrying value on the sale date, after depreciation up to that date, as per your accounting policy. Also check the income-tax block: sale proceeds reduce the block, and a taxable short-term capital gain generally arises only if the block ceases to exist after the sale. Confirm whether the figures are book or tax WDV and whether the car was the only asset in its tax block.

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