Old Machine Sale

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

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for book entry u have to get the withdrawn value as on 1st april in the year of sale, and deduct the same from sale proceeds, net balance will come in P/L account as profit on sale of capital goods (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for book entry u have to get the withdrawn value as on 1st april in the year of sale, and deduct the same from sale proceeds, net balance will come in P/L account as profit on sale of capital goods (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)