Can a Depreciable capital asset which is used for the purpose of business can be converted into stock in trade?
if yes then how it is calculated?
thanks in advance.
Menu
Depreciable capital asset
Replies (1)
Yes. depreciable asset can be converted into stock, u have to consider the market value at which it should be transferred to stock.
As per IT act : Such amount shall be reduced from the block of assets ( same procedure as if it were sale of fixed asset).
For accounting : Difference between conversion value and wdv is treated as loss or gain on sale of asset
Recent Topics :
- Demand Raised for Cess Amount Despite Section 89 R
- WRONG BILL NO FILED IN GST R1
- Addtional trade name for my another firm
- Commission / Agency Business without books: REAL E
- Difference between AIS and 26AS data.
- Applicability of FCRA to Article Processing Fees (
- GST Return
- Practical queries on buy back of shares
- Any faculty recommendations for latest batch recor
- FAI & FAST-DS 2026 query
Related Topics :
CAclubindia
