Capital gain ?

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AMIT (Querist)
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02 August 2010
i convert my 5 building ( worth RS. 5 crore) to Stock in trade

do i need to pay Capital gain on 5 crore before converting ?

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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02 August 2010 Not required to pay any tax on capital gain

AMIT

AMIT (Querist)
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02 August 2010 Sir

why ?

It is a tranfer u/s 2(47)

than it must be subject to CApital gain ?

please explain me,

if i hve asset worth Rs. 100 crore and to save tax i say that it is stock in trade, wil that be exempted ?

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CA Sanat Pyne

CA Sanat Pyne (Expert)
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02 August 2010 TAX WILL BE PAID WHEN YOU SOLD THAT STOCK

AT THAT TIME TAX WILL BE PAID ON CAPITAL GIAN AND ALSO BUSINESS PROFIT.
FOR DETAIL CALCULATION SEE ANY BOOKE OF INCOME TAX.

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AMIT

AMIT (Querist)
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02 August 2010 sir please answer my service tax query ask by me also.

i m not receivng reply for any other expert please help

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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02 August 2010 The question was applicabiliyt of CG at the time of conversion

The answer is NO

At the tine of sales both the Capital Gain and Business profil will be applicable accorindly

CA Sanat Pyne

CA Sanat Pyne (Expert)
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02 August 2010 AMITJI I THINK YOUR SERVICE TAX QUERY IS ALSO SOLVED.
PLEASE CHECK.