ICICI

Income on asset sold


Abhinav Aggarwal (STUDENT/ARTICLE ASSISTANT)     05 August 2013

Abhinav Aggarwal
STUDENT/ARTICLE ASSISTANT 
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We are Pvt. Ltd.and charging depreciation on Fixed Asset, we sold this asset within the year, on what basis we calculate profit & what it is the amount of tax liability, the block is standing as on b/s date.

 

 

Plez help me

 

avater

Devendra (Chartered Accountant)     05 August 2013

Devendra
Chartered Accountant 
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If the Sale consideration is more than the WDV of the block, then the profit on sale of asset shall be transferred to the same block of assets, thus the WDV of the remaining assets will be reduced.

If the sale consideration is less than the WDV of the block, then the Loss on sale of Asset shall be transferred to the same block of asset, thus the WDV of the reamining assets will increase.

 


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