In case of pvt. ltd. company, if inventory is want to convert into fixed asset,which is retained in the bussiness for the period of more than 10 years.Can it allowed by company law & accounting standard.Plz reply with any section or any notification.
Menu
help me
Replies (1)
If the asset is put to use only after conversion, then pass an entry on the date of conversion at the historical cost, debiting Asset and crediting the stock account. For the income tax purposes, you can pass the entry, I believe, at historical cost itself and take the asset as addition to the appropriate block. If the stock is being used as asset even before the date of conversion, then retrospective effect must be given.
Recent Topics :
- Gst input credit
- CAN PARTNERSHIP FIRM SIGN SERVICE AGGREMENT WITH A
- E-waybill
- Sell of CAFC books
- ITC ON RENT
- GSTR-9 Table 8A Portal and Excel Issues
- IGST on Commercial Rental Income (Different State)
- Revocation of suo moto cancelled GST registration
- Is there any faculty taking chapterwise test in CA
- Late Fees and Interest
Related Topics :
CAclubindia
