First Said that our Comapny Situated in West Bengal.
Please note that We have purchased a New Machine in 1994 at Chennai . Now this Year 2011( March) we want to sale this Machine . So please suggest us what is the Procedure to sale this old Machine & What Taxes (SALE TAX, ANY TCS etc.) wil be aplicable ? (IF We sale the machine to Register /unregister Party in West Bengal)
We know Machine is a Capital Goods so how to showing this transaction in Profit & Loss A/C and Blance Sheet also explain
No tax will be applicable because you are not trading in selling and buying machines. Just passes an entry of profit or loss in P & L account.
| Originally posted by : niloy sanyal | ||
 |
First Said that our Comapny Situated in West Bengal. Please note that We have purchased a New Machine in 1994 at Chennai . Now this Year 2011( March) we want to sale this Machine . So please suggest us what is the Procedure to sale this old Machine & What Taxes (SALE TAX, ANY TCS etc.) wil be aplicable ? (IF We sale the machine to Register /unregister Party in West Bengal) We know Machine is a Capital Goods so how to showing this transaction in Profit & Loss A/C and Blance Sheet also explain |
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Sales tax / Vat/ CST : applicable as per the state rules, if u have used exemption forms in purchase then taxable otherwise not.
TCS : applicable if the capital goods are cleared as scrap.
for book entry u have to get the withdrawn value as on 1st april in the year of sale, and deduct the same from sale proceeds, net balance will come in P/L account as profit on sale of capital goods ( loss if the sale price is less than wdv on 1st april)
| Originally posted by : niloy sanyal | ||
|
|
First Said that our Comapny Situated in West Bengal. Please note that We have purchased a New Machine in 1994 at Chennai . Now this Year 2011( March) we want to sale this Machine . So please suggest us what is the Procedure to sale this old Machine & What Taxes (SALE TAX, ANY TCS etc.) wil be aplicable ? (IF We sale the machine to Register /unregister Party in West Bengal) We know Machine is a Capital Goods so how to showing this transaction in Profit & Loss A/C and Blance Sheet also explain |
|
Sales tax / Vat/ CST : applicable as per the state rules, if u have used exemption forms in purchase then taxable otherwise not.
TCS : applicable if the capital goods are cleared as scrap.
for book entry u have to get the withdrawn value as on 1st april in the year of sale, and deduct the same from sale proceeds, net balance will come in P/L account as profit on sale of capital goods ( loss if the sale price is less than wdv on 1st april)
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