transfer from capital asset to stock in trade and its revers

I would like to know the following:

 

A friend of mine has a gold jewellery showroom and also owns few personal jewellery.

In the last FY 2009-10, we have transferred 2 Kgs of his personal jewellery to his jewellery showroom at Rs.1650/= per gram.

The jewellery is lieing as stock in trade in his showroom and he has not sold it. Hence capital gain is not applicable until the jewellery is sold by him.

Now he wishes to transfer the jewellery (2kgs) back to his personal books. I would like to know the following on this:

1. At what price the transfer should be done ?

2.Will there by any tax on the above transfer ?

Kindly reply at the earliest

Replies (1)

 

this is nothing but drawing from business....

 

drawing by proprietor is not a sale.....

 

it is not a transfer as stock is not a capital asset......

 

there is nothing taxable here, tax will araise only if proprietor after taking it for personal use sells it ( as jewellery is a capital asset even though it is held for personal use)

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