Hello,
A polyhouse is a structure made of steel/GI pipes with plastic covering - and farm produce is grown inside. While the plastic has a life of 4-5 years and is changed whenever necessary, the steel structure has a 50 to 60+ years, or even more, life (it is galvanised, and fixed in the ground - immovable structure, unless dismantled).
The query is - if a farmer sells such a polyhouse, used by him for over a decade, what sort of tax would the sale attract ?
Thanks.
Shriniwas.
If used structure is sold there would not be any gain or profit !!
@ Rambhia Sir,
Sir can you please explain in detail, to understand it correctly
Evaluate its Cost of aquisition and sell price..... (only for used items)
Thank you for the reply.
So just to confirm, the structure is not considered a capital asset ? - thereby the sale being a capital gain/loss ?
Also, would depreciation be considered to calculate profit / loss ?
And with or without depreciation, if there is profit - under which head will it be considered ?
Thank you.
Shriniwas.
If depreciation has been availed, and if there is any gain it will be ST capital gain.
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