Hi Friends..
Can anybody tell me the exact meaning of "LOOM HOURS" with exact link on the wikipedia, if any or any other suitable link where I can read it thoroughly???? Or else, please explain whatever you know about it!!!!
Best Regards
NEHA
Neha (Article) (118 Points)
05 August 2011Hi Friends..
Can anybody tell me the exact meaning of "LOOM HOURS" with exact link on the wikipedia, if any or any other suitable link where I can read it thoroughly???? Or else, please explain whatever you know about it!!!!
Best Regards
NEHA
Sanat kumar
(Chartered Accountant)
(265 Points)
Replied 05 August 2011
Hi Neha
Loom is a textile machine for weaving yarn or thread into a textile.
Loom Hours means Right to use that machine for a particular time. For eg: If a person (X) installed a loom in his factory and his factory time is 09 am to 05 pm. X made a Contract with Y to use the loom after 5 pm to 05 am. That is called loom hour. Here X is transferring Right to use the loom for a certain time period to Y for some consideration.
It will be covered under capital gain tax. Here cost of acquisition will be Nil.
Shah Tarun
(Student)
(800 Points)
Replied 05 August 2011
bn sneha
(Student-IPCC)
(44 Points)
Replied 24 April 2012
Amount of purcahse price will be cost of acquisition here.
It's not nill
Anil Verma
(Auditor)
(190 Points)
Replied 03 May 2012
Ruchit Khimawat
(Student)
(47 Points)
Replied 23 November 2012
but is it allowed to use loom during night hours i.e., after 5 pm to 5 am as specified by sanat kumar?
shambhavi
(student)
(22 Points)
Replied 17 August 2013
Kishan Kashyap
(Student)
(79 Points)
Replied 04 December 2018
Santhini shanmugam
(2 Points)
Replied 18 December 2022
Loom is the acquired Asset. If we sell the Loom it has cost of acquisition. But loom hour is treated as self generated asset , when right to use only is transferred for a price, then there will be sale price but no cost of acquisition. (It is very Clear from the above example given by sanath sir)
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