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
Abhinav Aggarwal (STUDENT/ARTICLE ASSISTANT) (359 Points)
05 August 2013We 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
Devendra
(Chartered Accountant)
(4775 Points)
Replied 05 August 2013
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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