20 March 2016
Our firm has purchased one motor car on dec-15 before registering it on our name after 3 months we have sold that car at some profit. kindly explain tax treatment in our hands.
20 March 2016
See it will have its effect over the block of fixed assets. Car is depreciated at 15% if there are any other assets under this block then you need not pay tax on the profit. Profit amount also gets reduced from the block and on the balance deprecation will be computed. In case there are no other assets or due to the profits the block is showing a negative figure then the profit or the negatve figure needs to be offered for tax. You will have to pay tax on the same.
CAclubindia
