hello everyone..
can anybody please help me with calculation of wdv as per sec 32 ?
eg. if a block of machinery having two machines A and B of opening wdv 50,000
machine X purchased during the year for rs 1,00,000.
machinery A and B sold during the year for rs 30,000.
so my question is whether the closing wdv of 1,20,000 ( 50000+100000-30000) will be considered as wdv of machine X ,though it had been purchased for rs 100000 (as machine A and B has been sold).
i have one more question, what if the same machine X is put to use on 1 jan 2013, i.e it is put to use for less than 180 days, so my query is whether deprication will be provided at the half rate for whole of the amount that is 120000 or it will be for 100000 ?
plz help.
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Wdv u/s 32 pgbp
Replies (22)
Ya it will be 1,20,000/-
Agree with Ankit.
WDV WILL BE TAKEN AS 120000 BECAUSE BLOCK STILL EXISTS
Closing wdv is 120000 only
Yes it will be 1,20,000 only.. Because in Income tax individual asset is not considerd..Depriciation is calculated on closing balance of Block of Assets.
Rs. 1,20,000/- as per sec 32 (opg + additions - deletions)
Sec 43(6) defines wdv...please chk
As per section 50 the block have to have atleast one assset and there must be some value in the block on which depre can be applied.
Hence it will be 1,20,000/-
Wdv taken rs 120000
Yes 120000 i.e 100000+50000-30000 coz of being in same block
Dear friends,
I have doubt on the answers.
The FAs A&B having op. book value of Rs 50,000/- and sold during the period at loss of 20,000/- i.e. at Rs 30,000/-. Hence don't we need to book the loss? The entry suppose to be:
Dr. cash - 30000
Dr. loss on sale of asset-20,000
Cr. machinery a/c 50,000
please correct me if I'm wrong.
Renjith u are talking about accounting treatment..
In IT.. There is block concept and not individual concept..
In IT u can book loss only when the whole block ceases to exist..
Which is not in this case..
ok. it is clear ankit. thank you.
I hope its not .. because there would b a capital gain of rs20000 ... which will not b reflected in as a part of such block of assets .. so op. wdv would b rs100000
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